‘Volatile dairy prices’ push firm into administration

The Widnes-based firm and its sister company Simplea – part of the Key Foods Group – employ a total of 44 staff across the two businesses, of which 39 have been retained by the administrators while they review operations.

The administration also affects Key Distribution, the firms’ warehousing and distribution division, which was expanded in February 2016.

Joint administrators from consultancy firm KPMG have been appointed to finds a buyer for the company.

KPMG director Paul Dumbell said that while Key Foods was historically a successful business, its financial performance had been impacted by the volatile prices of bulk cream and butter.

Volatile prices​

“In particular, the company was hit by a sharp increase in the market price of cream between April and July 2016, ultimately resulting in this administration appointment,” ​said Dumbell.

“In addition to securing the assets of the business and streamlining operations in an attempt to continue to trade, the joint administrators are now exploring a sale of this unique local business and its assets.”​

It was unclear what would happen to Key Foods Group’s Mezzona brand of Mediterranean food ingredients.

Established in 2012, the Key Foods Group encompasses Key Food Ingredients, Simplea and Mezzona.

Manufacture butter oil​

Key Food Ingredients imports bulk cream and butter to manufacture butter oil and butter ghee. It supplies to the foodservice, manufacturing and cocoa industries. 

Simplea Foods imports raw ingredients to produce puréed formats of ready-to-use ingredients such as garlic, ginger and chilli.

It also makes an artisanal range of bespoke sauces and condiments for the foodservice and retail markets.