Allied Bakeries has discontinued beleaguered “healthy” bread brand Bürgen due to a lack of demand.
The UK bakery group, part of Associated British Foods (ABF), said it had decided to focus on “core volume lines” amid inflationary pressures in the sector.
It comes as ABF chief executive George Weston said gas, wheat and logistics inflation had hindered its attempts to “tackle the losses in Allied Bakeries” this year.
A spokesperson for Allied Bakeries said: “We can confirm that we ceased production of Bürgen back in September.
“We know that there are many people who enjoyed Bürgen bread and will have been understandably disappointed by this news. However, given inflationary pressure on the bakery sector as a whole, Allied Bakeries has taken the decision to focus on its core volume lines to maximise production efficiency.”
The baker confirmed to Just Food the line had been discontinued and said it has no plans to relaunch the bread with another UK partner.
Allied Bakeries also produces Allinson’s, Kingsmill and Sunblest and makes private-label supermarket ranges.
It had re-branded Bürgen multiple times in an attempt to boost sales, marketing it as a healthier, “plant-powered” product.
The news follows the loss of Allied Bakeries’ major contract with UK supermarket chain Co-op, denting revenue and volumes.
Veteran industry analyst Clive Black, director and head of research at Shore Capital, dubbed the bakery firm “a notable problem child”.
ABF noted inflationary pressures on its bread arm in its annual results in November. It said: “Allied Bakeries sales were ahead of last year due to significant price increases but losses increased with significantly higher costs for wheat, energy and distribution.”
Weston said: “Our actions to tackle the losses in Allied Bakeries, our UK baking business, have been undermined this year by the scale of cost inflation in all aspects of its operations including in gas, wheat and logistics. Although progress has been delayed, we are working on solutions beyond pricing.”
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