Concern mounts over future of production as Wales’ famous bakery battles falling sales and changing consumer tastes

ONE of Wales’ best-known bakery brands is facing a major threat as changing eating habits, rising costs and falling demand for the traditional sliced loaf put pressure on jobs and production.

Brace’s Bakery, founded in 1902, has warned that the market for standard sliced bread has changed dramatically, with the company blaming an “acceleration of the decline in standard sliced bread” for its recent financial pressures.

The issue has now taken on fresh urgency amid fears over the future of production at one of the company’s Welsh sites.

Industry reports have said Brace’s planned to close its Pen-y-Fan Industrial Estate site as part of a wider business “reset”, with production being consolidated at its larger Croespenmaen operation. Earlier reports suggested the company expected fewer than 20 redundancies, with most staff transferring, but latest local reporting has raised concerns among workers that the situation may be moving faster than previously expected.

The company has said the Pen-y-Fan factory has one production line, while Croespenmaen has two sliced bread plants and also produces Welsh cakes, rolls and artisan-style products.

Brace’s director Mark Brace has previously described the pressures facing the industry as severe.

He said: “We are a long-standing family business in a very challenging marketplace as the rest of the baking industry is UK wide.”

He added that since Covid there had been a slow annual decline in standard bread sales, but that in the last two years major competitors such as Kingsmill and Hovis had also seen declines of more than 15 per cent.

Leon James, director of finance at Brace’s, gave an even starker assessment, saying: “There has been a massive reduction in the consumption of standard white bread – and the white loaf is our cash cow.”

He also warned of the difficulty in passing rising costs on to customers, saying: “If we put our prices up, customers will very quickly switch.”

The problem is not unique to Brace’s. Across Britain, the traditional wrapped sliced loaf has been losing ground as shoppers change the way they eat. Market research cited by The Guardian found that sliced loaf bread sales had fallen by around 15 per cent over five years, while only around a third of people now eat sliced loaf bread daily, down from about half in 2015.

Kiti Soininen, head of food and drink research at Mintel, said: “Whenever a new breakfast or lunch option comes into the market, more often than not it’s bread that loses out.”

Younger consumers are increasingly turning to wraps, flatbreads, oats, yoghurt, salads, rice bowls, noodles, sushi and higher-protein meals. At the same time, concerns over ultra-processed foods and refined carbohydrates have pushed some shoppers towards seeded, wholegrain, sourdough and higher-fibre breads.

The UK bread industry is already responding with consolidation. Associated British Foods, the owner of Kingsmill, agreed a £75m deal to buy Hovis, a move expected to create the UK’s biggest bread brand if approved by the Competition and Markets Authority. The deal follows falling sales and losses in parts of the traditional bread sector.

For Wales, however, Brace’s carries a particular significance. This is not just another food manufacturer. It is a household name whose loaves have been bought in corner shops, supermarkets and family kitchens for generations.

The crisis highlights a wider question for Welsh manufacturing: how can long-established family firms survive when consumer habits change faster than factories can adapt?

Brace’s has already shifted more attention towards Welsh cakes, rolls, premium loaves and artisan-style products. But the pressure on the standard sliced loaf remains a serious challenge for a company whose name has long been associated with everyday bread.

Bread itself is not disappearing from Welsh homes. But the kind of bread people buy, and the way they eat it, has changed.

For Brace’s, the future may now depend on whether one of Wales’ most familiar food brands can move beyond the old white sliced loaf without losing the loyalty, identity and scale that made it famous.

SO-CALLED “forgotten meats” such as liver, heart and kidneys could soon find their way back onto dinner plates, with scientists suggesting they may offer a cheap, sustainable and highly nutritious alternative to modern ultra-processed foods.

Offal was once a staple of everyday diets across the UK, particularly in working-class households, but has steadily fallen out of favour in recent decades despite being rich in iron, protein and essential vitamins.

Now researchers at Aberystwyth University are working with Hybu Cig Cymru (HCC) to understand why demand has dropped and whether these cuts could be repositioned as affordable “superfoods”.

Scientists say that when nutrient-dense parts of the animal go uneaten, valuable food is effectively wasted.

Dr Siân Mackintosh, from the university’s Institute of Biological, Environmental and Rural Sciences (IBERS), said these meats could play an important role in healthier and more sustainable diets.

“Where they are not being used, these nutrient-dense ‘forgotten meats’ represent a significant loss of nutrients from our food chain,” she said. “Incorporating them as part of a balanced diet could support human health while also reducing food waste and improving environmental outcomes.”

Taste tests win over public

To test public attitudes, HCC staff have been running tasting sessions at major agricultural events including the Royal Welsh Show and the Winter Fair in Llanelwedd.

Visitors sampled dishes made with Welsh lamb’s liver, including stroganoff, traditional faggots and pâté. Organisers say many people were surprised by the flavour and keen to learn how to cook them at home.

Dr Eleri Thomas, Future Policy and Project Development Executive at HCC, said interest was stronger than expected.

“We believe there is significant potential for these forgotten meats to be incorporated back into our diets,” she said. “Consumers liked the flavour and wanted recipes and cooking tips, as well as understanding the nutritional value.”

She added that making better use of undervalued cuts could improve sustainability across the meat supply chain while creating new marketing opportunities for Welsh producers.

Part of wider sustainability project

The work forms part of the SMART Nutrient Cymru project, funded through the Welsh Government’s innovation support scheme.

Project lead Dr Christina Marley said the aim is to capture nutrients currently being lost across the agri-food system.

Alongside the collaboration with HCC, the team has also partnered with Dŵr Cymru Welsh Water on land management to protect rivers, and with British Wool to explore new uses for fleece by-products.

IBERS itself is one of eight UK research institutes strategically supported by Biotechnology and Biological Sciences Research Council, providing national expertise in grassland and plant breeding science.

Researchers say that with food prices rising and pressure growing to reduce waste, traditional nose-to-tail eating could offer both economic and environmental benefits.

Image: Welsh lamb faggots (Pic: HCC)

BLAS RESTAURANT, the three AA rosette dining destination known for its modern Welsh cooking and deep connection to Pembrokeshire’s land and coast, is heading to the capital for a special three-day pop-up: Blas in the City, taking place from Thursday 26 February to Saturday 28 February 2026 at The Sorting Room in Cardiff’s landmark Parkgate Hotel.

For a limited time only, Cardiff diners are invited to experience the flavours, creativity and storytelling that define Blas — without leaving the city. Working alongside The Parkgate Hotel’s kitchen team, Blas Head Chefs Dan Slipakiv and Gareth Evans will present a bespoke menu showcasing the best of seasonal Welsh produce, with refined, flavour-led dishes inspired by Wales’s rich natural larder.

“Blas in the City is an exciting opportunity for us to share what we do with a new audience,” said Blas Head Chef Gareth Evans. “We’re proud of our Pembrokeshire roots, and this collaboration allows us to bring the spirit, flavours and creativity of Blas to Cardiff.”

Hosted in The Sorting Room — a Michelin Guide-listed, two AA rosette restaurant — the pop-up combines Blas’s bold contemporary style with the elegance of one of Cardiff’s most celebrated dining rooms.

Event details

Dates: 26–28 February 2026

Lunch: 12:30pm – 3:45pm

Dinner: 6:30pm – 9:30pm

Location: The Sorting Room, The Parkgate Hotel, Cardiff

Dress code: Smart casual

Guests can book for lunch or dinner across all three days, with exclusive menus available throughout the event.

Blas in the City reflects the restaurant’s ongoing commitment to championing Welsh food, seasonal cooking and meaningful collaborations — offering guests the chance to enjoy something genuinely memorable.

Bookings are now open and availability is limited.
https://www.theparkgatehotel.wales/home/restaurant-bar/blas-in-the-city/

About Blas Restaurant

Blas is a three AA rosette contemporary Welsh restaurant rooted in Pembrokeshire, celebrating outstanding local produce, bold flavours and a strong sense of place. The name “Blas”, meaning “taste” in Welsh, reflects the restaurant’s philosophy of thoughtful, ingredient-led cooking inspired by land and sea.