Bakkavör was founded in 1986 by the two brothers Ágúst and Lýður Guðmundsson to manufacture and export codroe to Scandinavia.[7] In 1993 the company became the first production company in Iceland to obtain a ISO:9002 certification for quality assurance.[8]
By 1997 the company had expanded into Scandinavian and European markets selling cod and lumpfish roe. By October 2000, Bakkavor had an annual turnover of over 4.5 billion ISK.[9]
They expanded the business by selling convenience foods.[7] The company acquired Katsouris Fresh Foods in 1997, Wine & Dine in 2000,[9] and Geest in 2005.[7] In early 2003, the company sold its Icelandic components to Fram Foods ehf. and began focusing on the UK market.[10] By 2005 the company had over 13,000 employees.[11]
Following the global financial crisis of 2008, Bakkavör became heavily indebted,[12] forcing the Guðmundsson brothers into emergency talks with the company's bondholders.[12]
The founding brothers repurchased a major stake in Bakkavör from their investment company, Exista, in 2009.[13] The company delisted from the NASDAQ OMX in Iceland in 2010 and became a private limited company.[14] Lýður and Ágúst Guðmundsson faced fraud charges in Iceland in 2012 relating to their ownership of Exista.[15]
Between 2013 and 2015 the company simplified its structure, selling its South African operation and a 40% stake in its Italian business later in the year, along with other operations in Continental Europe.[16] The company acquired US prepared foods' manufacturer B. Robert's Foods in January 2015.[17]
In January 2016, Bakk AL Holdings Limited, a company owned by Ágúst and Lýður Guðmundsson and funds managed by The Baupost Group, LLC, purchased shares in the company, taking its ownership to approximately 89% of the outstanding shares.[18]
In April 2017, many supermarkets had to recall the company's hummus because of poor quality control.[19]
Bakkvor acquired Blueberry Foods of Leicester, UK in 2019, a dessert manufacturer.[21] In 2022, Ágúst Guðmundsson stepped down as CEO and appointed Mike Edwards as its successor.[22]
Operations
The company produces a range of meals, salads, desserts, dips, sauces, sandwiches and pizza and bread products.[23] Bakkavor produces over 3,200 product categories to over 900 supplies in the UK, USA and China.[4]
Bakkavor operates 23 factories in the UK, 9 in the USA and 5 in China.[4]
^ abcJónsson, Ásgeir; Sigurgeirsson, Hersir (2016). The Icelandic Financial Crisis: A Study into the World's Smallest Currency Area and its Recovery from Total Banking Collapse. Palgrave Macmillan. p. 71. ISBN978-1137394545.
