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Bacco’s Bakeries is a thriving small business with big plans

This family business has the confidence to grow after relocating and refinancing.

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Bacco’s Bakeries is a successful family-run business that is thriving while its owners manage to enjoy quality time together. The Newcastle-based business sells primarily to a wholesale market and services strong national demand from the wine and restaurant industries. 

As they set their eyes and plans on expanding, Bacco’s owners Kristy and Luigi Papagni said creating a business based around their family was always a priority.  

"We met about 20 years ago," Luigi said, "when I was traveling in Australia from Italy, and we decided that one day we would like to start a family business. And so we found ourselves baking in a home kitchen.

"Kristy and I, we improvised when we started making our first product. It was a savoury biscuit that’s traditional in my hometown in Italy and I knew how to make it already because I had seen my mum and grandma making it, and in fact I used to help when I was a small boy. So the only thing I had to do at this stage was to ring mama and say 'ma, what is the recipe for that'."

Kristy and Luigi found an opportunity in the market when they realised that the flatbreads eaten in Australia with cheese and wine were imported from Italy. They soon began baking their own and selling to the Hunter wine industry, and from there they were soon selling their Bacco’s Leaves wholesale Australia-wide.         

I like to know the people who I’m working with and build mutually beneficial relationships.

The first Bacco’s bakery was based close to the Hunter wine industry in Murrurundi but in 2017 Kristy and Luigi moved the business to Newcastle. From their new Flemming Street, Wickham, location the couple has expanded their product range to include Italian-style Sourdough for the local community, and continued to grow their distribution network.  

"We were having a big move from Murrurundi to Newcastle,” Kristy said, “so we then had to take on that step of financing the location for the business, renovating the building, and getting machinery and moving the bakery.

"We first approached Newcastle Permanent to get a house loan and then we found premises that we wanted for our business. We found Andrew from the Business Solutions team at Newcastle Permanent to be very helpful. He talked us through each step that we had to take in order to get the finances, and it was a bit of fun on the way.

"Then I approached Andrew saying we now want to get a bigger house. And nothing was too much for him. He was very supportive and we're grateful for that."

Luigi said he appreciated the personal service that he and Kristy had received from Andrew and the Business Solutions team.

"I like to know the people who I’m working with and build mutually beneficial relationships," Luigi said. "I couldn’t believe the personal service we had with Andrew." 

Bacco’s success hasn’t meant Kristy and Luigi have had to sacrifice their lifestyle. The couple rarely work weekends, and prioritise time with their two teenage children. 

Bacco’s Bakeries is now expanding its range of products, all made from locally-sourced, sustainable ingredients.  

"The service we’ve received from Newcastle Permanent has given us the support and confidence to experiment and grow and that’s a big relief for us," Luigi said. 

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