According to the manufacturer of Oxo stock cubes and Mr Kipling pastries, the site has grown unproductive and is no longer vital to the company’s future.
Premier Foods, the manufacturer of Oxo stock cubes and Mr. Kipling pastries, has revealed plans to close a plant in the West Midlands, threatening over 300 jobs.
Premier Foods announced on Thursday morning that the site in Knighton. Which straddles the border between England and Wales, had grown unprofitable and will close by mid-2023.
The corporation is now in negotiations with manufacturing employees who primarily produce powdered drinks.
The move will cost the company approximately £10 million, according to Premier Foods.
It is acknowledged that this will be an unpleasant moment for the approximately 300 colleagues who may be affected by these plans, and they will be supported and consulted with throughout the process,” the business said in a statement.
The announcement follows consecutive quarters of great financial performance for the corporation.
Premier Foods closes Knighton facility
Premier Foods saw a 13% increase in grocery sales and a 10% increase in overseas sales in the last three months of 2022, compared to the same period the previous year.
Before it, Premier Foods had experienced three prosperous years due to increased consumption during the pandemic. Resulting in a 20% dividend increase for stockholders in 2022.
Alex Whitehouse, the chief executive officer of Premier Foods, stated, “These results highlight the power and endurance of our branded growth approach and the enduring popularity of our portfolio of market-leading brands in such a hard climate.
Our big grocery brands continue to outpace the market in terms of growth, generating exceptionally strong earnings for us. People around the nation resumed cooking for Christmas.”
Premier Foods employs more than 4,000 employees across 15 locations in the United States. Supplying retailers and wholesalers with brands including Bistro, Ambrosia, Bachelors, Loyd Grossman, Oxo, and Sharwood’s.
Mr. Whitehouse stated that the company has been coping with rising costs as a result of inflation, which persisted.
“Input cost inflation is elevated, and we continue to take a variety of actions to counteract this inflation,” he said.
With solid trading momentum as we enter the fourth quarter of the year and more brand investments and new product launches to come, we are well positioned to meet annual objectives.
