FDBusiness.com

Müller Group to Invest £60 Million in Restructuring its UK Milk & Ingredients Business

 Breaking News
  • UK Restaurant Numbers Drop Again as Consumer Tastes Shift Britain’s restaurant numbers have fallen for the sixth quarter in a row, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals. Independent operators have borne the brunt of the closures with group-owned restaurants proving more resilient despite some major brand failures. The quarterly survey of the country’s supply of licensed premises reports a 3.4% drop in [...]...
  • Molson Coors Commits to Reduce Plastics in Packaging Molson Coors in the UK and Ireland is removing the plastic packaging from its Carling and Coors Light brands, as part of new global packaging goals. The brewer will remove the plastic film wrap from large multipacks by the end of March 2020, replacing the plastic wrap with 100% recyclable fully enclosed carton board. By [...]...
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...

Müller Group to Invest £60 Million in Restructuring its UK Milk & Ingredients Business

Müller Group to Invest £60 Million in Restructuring its UK Milk & Ingredients Business
November 08
09:25 2016

Proposals designed to secure a sustainable and vibrant future for Britain’s biggest fresh milk and ingredients business have been confirmed by Müller Milk & Ingredients (MMI), which is part of Müller UK & Ireland. The business is proposing to invest £60 million to upgrade capabilities and operational efficiencies at its processing facilities at Severnside and Foston with further enhancements to dairies at Droitwich, Manchester and Bridgwater. The project will create up to 180 new jobs.

The investment is part of a total of more than £100 million which will be spent by Müller in the UK across its Müller Milk & Ingredients and Müller Yogurt & Desserts businesses in the next 18 months to improve operational, innovation and marketing capabilities.

MMI has already confirmed a major investment at its dairy at Bellshill in Scotland and reversed the decision taken by Dairy Crest prior to the sale of its dairies to Müller to close a dairy at Hanworth in South West London, securing 170 jobs at the site.

However, the business is now proposing to commence a phased wind down of the Chadwell Heath dairy in North East London over an 18 month period with the potential loss of 389 permanent posts. MMI’s distribution network in the South East is unaffected by this proposal and will be maintained and developed to meet current and future customer requirements.

MMI is undertaking a 45 day consultation and will work with affected employees and their representatives to look at all options including offering alternative roles within the business. In the event that a decision is taken to wind down processing operations at Chadwell Heath, Müller will work with dairy farmers who supply the site to review their options with the intention that wherever possible, they will not be disadvantaged.

The proposals follow the acquisition of Dairy Crest’s dairy operations, including Chadwell Heath dairy, in December 2015, and are part of MMI’s plan to put in place a modern, efficient fresh milk and ingredients processing and distribution business with national coverage, which meets the needs of its customers across the country.

mullerlogoAndrew McInnes (pictured above), managing director of Müller Milk & Ingredients, comments: “When we acquired Dairy Crest’s fresh milk dairy and distribution operations just under a year ago, we made it clear that change would be required to secure a better and more vibrant future for the dairy sector in Britain. We have taken time to assess the best way forward and to model and design a national processing and logistics network which fully meets the needs of our customers throughout the country now and in the future.”

He continues: “By improving operational efficiencies and capabilities at these sites, we can unlock new innovation to transform the milk and ingredients sector, benefitting our consumers, customers, colleagues and farmers. Regrettably, it is clear that the dairy at Chadwell Heath is no longer economically viable. It requires complete overhaul and modernisation and in an industry which has struggled for many years with excess and inefficient processing capacity, we cannot justify committing the level of investment which would be required to bring this site to an acceptable and sustainable level of performance.”

Müller UK & Ireland is wholly owned by the Unternehmensgruppe Theo Müller. It employs around 12,000 people in a business which comprises two distinct business units: Müller Milk & Ingredients and Müller Yogurt & Desserts.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements