Nestlé has announced proposals to move production of its Blue Riband brand out of the UK, as part of a number of changes to its UK confectionery operations that will lead to the loss of almost 300 jobs.
A total of 298 roles will be cut, predominantly at the company’s sites in York and Newcastle upon Tyne. Further changes will be made to plants in Halifax and Girvan in a move that Nestlé said would allow it to ‘operate more efficiently and remain competitive’.
But the plans have been criticised by GMB, as well as the UK’s largest trade union, Unite.
As well as the job losses, changes to Nestlé UK’s manufacturing set-up include the transfer of Blue Riband production to Poland. The brand of chocolate wafer was first launched in the 1930s but was relaunched in 2004, and is currently manufactured at the site in Newcastle.
Nestlé said that moving production abroad would allow it to simplify the factory, which already makes 16 different product ranges. It said that the factory – in the Fawdon area of the city – was one of its most complex.
Jobs will also go at the site in York – the original home of confectionery company Rowntree’s, which was bought out by Nestlé in 1988.
All of the changes would take place during 2017 and 2018, and will be subject to a 45-day consultation period.
“Nestlé UK appreciates that this is an uncertain time for employees and will work hard to ensure all are supported through this difficult period,” it said in a statement.
Mark Jones, a solicitor at Gordons law firm specialising in the food and drink industry, explained: “Nestlé moving the production of its Blue Riband chocolate to Poland and cutting jobs in the UK reflects a building momentum of packaged food companies. Mondelēz is already producing some of its chocolate products in Poland, including Dairy Milk bars, and the failed takeover of Unilever by Kraft Heinz reflects packaged foods businesses’ acknowledgment that costs need to be reduced if they are to preserve profitability in the coming years.
“Consumers are moving away from packaged foods in search of healthier choices and shifting production from the UK to Poland should reduce Nestle’s costs in the long run so it can maintain its profitability. Nestle and Mondelēz’s moves are a sign of things to come, expect more businesses to follow suit.”
© FoodBev Media Ltd 2024