FDBusiness.com

Premier Foods to Rationalise Bread Business – 900 Job Losses

 Breaking News
  • 2 Sisters and Standards in Poultry Processing Report Published The Environment, Foods and Rural Affairs Committee in the UK has published its report into 2 Sisters Food Group and Standards in Poultry Processing. The Committee launched an inquiry into 2 Sisters and poultry standards following the undercover footage released by The Guardian and ITN. The evidence sessions looked at the issues raised at the 2 [...]...
  • ADM Wins ‘Most Innovative Food Ingredient’ at Gulfood Excellence Awards Archer Daniels Midland Company has been awarded ‘most innovative food ingredient’ for its natural sweetening solution, Fruit Up® Fiber, at this year’s Gulfood Manufacturing Industry Excellence Awards. The awards recognize best practices and innovation within the food manufacturing industry value chain. Entries were judged on the additional value the innovations brought to developers, as well as [...]...
  • Bayn Europe Enters China Sugar Reduction Market Bayn Europe has signed a strategic framework agreement with Kong Wua Group in China, outlining the establishment of a R&D center for sugar reduction and production of sugar replacer solutions. Through the agreement, Bayn and Kong Wua will bring sugar replacer solution to the market to help tackle the sugar over-consumption social problems. “It is important [...]...
  • It’s Time to End Food Waste – White Paper Among the most interesting topics in the publication ‘It’s time to end food waste’ is a closer look at the psychology of food waste by Nina Waldhauer at the University of Wageningen. Waldhauer explains how “(…) the food sector business can create opportunities for reducing consumer-related food waste. It can be done in ways that acknowledge consumer´s goal [...]...
  • Orkla Sells K-Salat to Stryhns Orkla Foods Danmark has agreed to sell its K-Salat business to Stryhns, which is part of the Norwegian Agra group. The purpose of the sale is to concentrate Orkla’s activities on fewer categories. K-Salat has a product portfolio of salad spreads, mayonnaise, remoulade, dressings and potato salads in Denmark. Under the agreement, Stryhns will take over [...]...

Premier Foods to Rationalise Bread Business – 900 Job Losses

Premier Foods to Rationalise Bread Business – 900 Job Losses
November 20
11:26 2012

Premier Foods has announced a further step to build value in its Bread business and drive sustainable profitable growth through simplifying its manufacturing and distribution operations to improve efficiency, quality and service levels, so enhancing the performance of the Hovis brand.  Proposals have been developed to close two bakery sites in Greenford and Birmingham during the course of 2013, in addition to the previously announced closure of the Eastleigh bakery, and to consolidate production from these locations into the company’s remaining bread manufacturing sites.

In addition, it is proposed to simplify the bread distribution network by removing approximately 130 distribution routes, taking into account the reduction in volumes from the previously announced loss of a low margin bread contract by mid 2013. As a consequence, Premier Foods is proposing to close distribution operations in Greenford, Birmingham, Mendlesham and Plymouth. It is also proposed to restructure the company’s outsourced logistics operations to optimise the new network. Together, these proposals are expected to result in approximately 900 fewer jobs across the company’s Bread Division.

Michael Clarke, chief executive of Premier Foods, comments: “Having generated solid growth momentum in our Grocery Division, it is critical that we act to assure the long-term future of the Bread Division. By simplifying our cost base, we can increase focus on improving efficiency, quality and service levels to help grow our core Hovis business. We recognise the impact these actions will have for our employees at the sites affected. Decisions will not be taken lightly but they are necessary if we are to build a strong and successful future for the Bread Division and those who remain with our business.”

Charges associated with these proposals are expected to be approximately £28 million and will be reflected in Premier Foods’ 2012 and 2013 financial statements, with the majority of the cash outflows to implement the proposed changes taking place in 2013. The company expects to recover the majority of the cash impact of the proposed changes in future periods through realising site disposals, reduced working capital requirements and lower capital expenditure. On a pro forma basis, the savings from the proposed restructuring are expected to offset the margin forgone from the lost bread contract. These proposals are not expected to have an impact on 2012 trading profit.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements