Müller Milk & Ingredients is set to review its UK foodservice delivery operations, as the company claims the service is proving unprofitable.
Müller says the operation, which supplies 3,000 customers in the foodservice industry with fresh milk and other products, is suffering losses of £5 million per year.
The move puts 250 jobs at risk of redundancy, and the company’s final decision will be announced following a 45-day review and consultation process.
Müller acquired the foodservice delivery operation as part of its acquisition of Dairy Crest in December 2015, and the service accounts for 2% of the company’s turnover.
The company claims that the household delivery and education process provided by its sister company Milk&More will not be affected by the review and will remain operational.
Andrew McInnes, managing director at Müller Milk & Ingredients said: “Whilst the Müller Milk & Ingredients foodservice operation is a very small part of our overall business, it is vital that it is profitable and viable. It is clearly unsustainable in its current format.
“We would therefore like to take this time to assess the role and fit of this part of our business within our wider strategy for the future, and determine whether there are better and more sustainable ways to supply the needs of our smaller foodservice customers.”
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