Premier Foods closes factory in move affecting about 300 jobs

Mr Kipling’s cake company Premier Foods has revealed plans to close one of its factories, impacting about 300 jobs.

The group is proposing to close its Knighton manufacturing plant in Staffordshire, which it said was making “minor” losses.

She is launching a consultation with the factory’s 300 workers as part of a process set to run until mid-2023.

But the site, which makes mostly unbranded powdered drinks for the group, is expected to continue operating until 2024 before finally closing after a phased shutdown.

It is recognized that this will be a worrying time for the 300 or so colleagues who may be affected by these proposals and they will be fully supported and consulted throughout the processPremier Foods

The group, which makes a range of well-known products such as oxo cubes and bisto, has 15 factories across the UK and employs 4,000 people.

The Knighton factory does not fit into their “brand growth model strategy and is marginally unprofitable in terms of trading profit.”

“It is recognized that this will be a worrying time for the 300 or so colleagues who may be affected by these proposals and they will be fully supported and consulted throughout the process,” Premier Foods said.

The move is said to cost around £10million in one-off closure costs, but Premier said closing the site will boost trading profits in the long term.

Details of the plan came as Premier Foods reported a 12% increase in group sales in the third quarter ended December.

It said it would offset rising costs with annual price increases and cost savings.

Grocery sales rose 17.4% for the quarter, with branded sales up 15.5%.

Pricing gave a “significant” boost to sales growth in the quarter, but added that “demand was particularly brisk during the all-important holiday season.”

Its sweet treats like Mr. Kipling, angel, lemon and chocolate slices didn’t fare as well, with sales falling 0.9%, while branded sales fell 10.8%, partly offset by a 22.8% rise in non-branded sales. has been balanced.

The group said sales of Cadbury cakes were impacted by unscheduled maintenance on a factory line “which has since been completed and full production has now resumed”.

Premier Foods Chief Executive Alex Whitehouse said: “Input cost inflation remains at elevated levels and we continue to take action to offset this inflation through a range of measures.

“With strong trading momentum entering our final quarter of the year, and with continued brand investments and upcoming new product launches, we are on track to meet expectations for the full year.”

https://www.belfasttelegraph.co.uk/news/uk/premier-foods-to-shut-factory-in-move-impacting-about-300-jobs-42298380.html Premier Foods closes factory in move affecting about 300 jobs

Linh

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