Breaking News on the Food and Drink Manufacturing Sector

Headlines > February 2011

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28-Feb-2011

English weather subdues ABF trading

Associated British Foods (ABF) has issued what stockbroker Shore Capital describes as a “rather subdued” trading update, following a disastrous UK beet sugar harvest

News in brief

Emerging markets see Devro invest in new capacity

Scottish sausage skin maker Devro is seeing growth due to rising meat consumption in emerging markets and the demand for conversion of casings from gut to collagen in animal hides.

News in brief

Hotel Chocolat – a correction

In our report published on 25th February we incorrectly stated that the GMB union had won a ballot to achieve collective bargaining recognition for workers at Hotel Chocolat’s factory in Huntingdon. No ballot was held. The GMB had an application accepted by the Central Arbitration Committee to become recognised for collective bargaining by Hotel Chocolat at the site.

Ready meals producers opt for vacuum packs

Ready meal producers are increasingly looking to vacuum packaging as a way to extend product shelf-life, according to a leading equipment supplier.

Recession may push Fairtrade off consumer radar

Fairtrade claims are currently less important to UK shoppers than health and even animal welfare product claims, data from MMR Research Worldwide indicates – while figures from the Fairtrade Foundation suggest ongoing growth.

Hügli Group doubles UK production capacity

Dry blended foods producer the Hügli Group has invested around £2m to double the size of its UK production facility and process more savoury products such as soups and sauces.

25-Feb-2011

Shareholders give thumbs-up to Uniq pension fund deficit deal

Uniq shareholders have approved a deal that will see over 90% of the food firm handed to its pension scheme to wipe out a gaping pension fund deficit.

Top industry talent holds all the aces

Food and beverage manufacturers who drag their heels over salary issues or benefits risk missing out on attracting the best industry talent in a market where highly skilled job applicants can pick and choose, say industry experts.

Headland Foods staff face redundancy pay dilemma

Workers at Headland Foods in Flint are asking for a more flexible approach to redundancy payments from owner Kerry Group, given worries that they could lose money by taking new work before the factory closes.

News in brief

Diageo targets further acquisitions in emerging markets

Diageo anticipates big growth from developing countries in the medium-term, and is planning further acquisitions in these markets given difficult trading conditions in mature markets such as Europe and North America.

24-Feb-2011

Arran Brewery targets £5m turnover

Arran Brewery has revealed ambitious UK and international expansion plans in a bid to turnover £5m within five years.

Unite: we’ll use every weapon available to save Burton’s jobs

Unite the Union will hold a rally this Saturday to protest against job losses at what Burton’s Foods says is its loss-making Wirral site.

23-Feb-2011

Findus Group confirms Grimsby redundancies

The Findus Group has confirmed that 47 workers have accepted voluntary redundancy at the Young's Seafood factory in Grimsby, although the job losses are fewer than initially expected.

Cautious consumers prove no growth barrier for Kerry

Solid branded and own-label growth in 2010 consumer food sales saw Kerry Foods see off rising ingredient costs, cautious shoppers and a tough promotional climate.

Longbenton Foods still in frame for Amble site takeover, administrator

Longbenton Foods is still in the running to buy the former Northumberland Foods site in Amble, FoodManufacture.co.uk can reveal, despite a prior inability to complete the purchase that led to the administrator tearing-up a previous sale contract in January.

SPECIAL EDITION: LOWER FAT FOODS

The low fat world is flat…

Major EU food manufacturers continue to offer low- or no fat products as a consumer option alongside goods higher in fat, while the trend towards healthier food launches along these lines has remained flat or even declined in some states.

First Milk partners up in search of cheese export opportunities

First Milk has struck up an export deal with Eilers & Wheeler in a bid to take advantage of attractive prices outside the UK.

22-Feb-2011

Pressure on Greencore to up stakes in Northern bid

Greencore is under pressure to table a viable counter-bid by March 2 to beat Ranjit Boparan in the struggle to takeover Northern Foods, but still has advantages on its side if it does do so, says one City analyst.

MP hitting ‘brick wall’ as Longbenton chaos continues

North Tyneside MP Mary Glindon admits she has hit a “brick wall” as she attempts to gain further information on the continuing confusion at Longbenton Foods Newcastle site.

News in brief

Will all real Cornish pasties please stand up!

Cornish pasty producers have welcomed an European Commission (EC) decision to award protected status to products made in the region according to a uniform traditional recipe.

21-Feb-2011

United Biscuits announces McVitie’s job losses

United Biscuits (UB) has announced plans to shed around 85 jobs at its McVitie's biscuit factory in Glasgow, and has begun a consultation with staff and unions in a bid to ensure voluntary rather than compulsory redundancies.

Top food firms interested in novel food freshness label, entrepreneur

A Scottish entrepreneur claims that two top food manufacturers and a major supermarket have shown interest in licensing an innovative colour-changing label that tells consumers how fresh their food is, which could be used on products within 12 months.

Greenpeace targets Princes HQ with direct action

Greenpeace has taken direct action at Princes' Liverpool HQ, in a bid to shame the food giant over what the campaign group claims are its use of destructive tuna fishing methods.

News in brief

Diageo targets Turkish market with £1.3bn purchase

Diageo has agreed a deal to buy Turkish spirits company Mey Içki for around £1.3bn from investment capital firm TPG Capital, in a cash and debt-funded deal.

18-Feb-2011

PoleStar Okehampton buyer Devonshire Desserts part of Country Style Foods

Devonshire Desserts - the newly created company that has acquired the plant, machinery and freehold of the former PoleStar desserts factory at Okehampton - is part of the Country Style Foods group led by md Joe Wood, FoodManufacture.co.uk has learnt.

Longbenton Foods has kept us in the dark, claim staff

Staff at Longbenton Foods’ Benton Lane factory in Newcastle upon Tyne have reacted with disbelief to claims by owner Geir Frantzen that bosses have maintained “excellent” dialogue with employees during its recent troubles.

Manufacturers fret over EU 'defrosted' designation

Industry concerns are growing about a possible amendment to the EU Food Information Regulation (FIR) that will require all foods frozen, then defrosted before sale, to be labelled ‘defrosted’.

Hovis workers could face redundancy at Avonmouth

A considerable number of workers at Hovis's bakery in Avonmouth could face redundancy as a result of plans to invest £4-5m in automating site processes, the Bakers Food & Allied Workers Union (BFAWU) has confirmed.

Big Interview

Ex Rachel's boss unveils plan to get Loseley ice cream into a freezer cabinet near you

With sales at Loseley Dairy Ice Cream up a cool 36% in 2010, the Cwmbran-based ice cream maker has certainly had a better year than a lot of other firms competing for space in the nation's freezer cabinets, but its best is yet to come, new md Neil Burchell tells Elaine Watson.

Hollow salty balls from Blighty impress the Yanks

More than 40 food and drink manufacturers in the US and Canada are experimenting with a new breed of microscopic salt crystals from UK-based firm Eminate enabling firms to slash sodium and retain their clean-labels.

17-Feb-2011

News in brief

Chocs away for Nestlé UK as firm boasts ‘particularly positive’ 2010 results

Nestlé’s performance in the UK was ‘particularly positive’ in 2010, trumping ‘resilient’ performances in Germany, Iberia, Italy and Switzerland, bosses have revealed.

318 jobs to go at Headland Foods in Flint, North Wales

Kerry Group will close Headland Foods' frozen own-label ready meals factory in Flint by the end of April with the loss of 318 jobs.

16-Feb-2011

Who's who in UK food plc? Food Manufacture's Business Leaders' debate in pictures

It might not have the glamour of the Oscars (or FM's annual awards), but if you're looking to rub noses with the cream of the UK food manufacturing industry, Food Manufacture's annual business leaders' round table debate is the place to do it. Ably steered by chairman Paul Wilkinson (pictured left with Uniq ceo Geoff Eaton), this year's event - hosted by Eversheds at its London HQ last month - brought together more than 20 mds and ceos from the UK food and drink manufacturing sector, and covered everything from coping with rampant commodity price inflation to the merits of gluten-free baking.

Should Greencore walk away from Northern Foods?

Greencore is still not ruling itself out of the bidding for Northern Foods, but City analysts believe it may be better off walking away now than leveraging itself up to the hilt in order to trump Ranjit Boparan's 73p/share cash offer.

Thorntons' profits slump 8.5% in first half

A 30.6% surge in sales of Thorntons-branded products to other retailers helped the chocolatier offset lacklustre sales through its own stores in the first half, but profits slumped 8.5% to £8.3m.

Benoit Testard to take helm at United Biscuits

United Biscuits has appointed UK md Benoit Testard as its new group chief executive as current boss executive chairman David Fish moves into a non-executive role.

Breaking news

Production stops at Longbenton Foods’ Benton Lane factory in Newcastle Upon Tyne

Production has stopped at Longbenton Foods’ Benton Lane factory in Longbenton.

15-Feb-2011

News in brief

Britvic creates 60 jobs at Rugby canning factory

Britvic has taken on around 60 new staff at its soft drinks canning factory in Rugby in preparation for a switch to round-the-clock production to meeting growing demand.

Premier Foods in ‘constructive dialogue’ with M&S over RF Brookes and Avana Bakeries

Premier Foods is in 'constructive dialogue' with Marks & Spencer over pricing and ranging at its own-label businesses RF Brookes and Avana Bakeries, which saw profits collapse from £15m to zero in 2010.

14-Feb-2011

Boparan pumps £30m into new factory for 2 Sisters

Chicken tycoon Ranjit Boparan is pumping £30m into new coated products factory for 2 Sisters in Thetford in a bid to increase its presence in the prepared food sector.

FDF calls for clarity on government aid to exporters

The Food and Drink Federation (FDF) has challenged the government to prioritise the food and drink sector, in the aftermath of a White Paper outlining new trade measures to aid UK exporters that appear to exclude the industry.

Flint workers at Headland Foods to learn their fate

Staff at Headland Foods’ ready meals factory in Flint will find out on Wednesday whether they will keep their jobs under new owner Kerry Group.

Food processor fined after worker’s hand severed in ‘horrific’ accident

A food processor has been ordered to pay ₤22,000 (€26,000) and condemned by safety authorities for failings that led to one worker losing his hand and another parts of several fingers in separate accidents.

News in brief

Are we loading food labels with too much information?

Are food labels now so crowded that shoppers can’t see the wood for the trees, and what space is left for innovative brands to communicate their values amid all the noise?

Micro-salt pioneer makes US debut as sodium reduction gathers pace Stateside

The UK firm behind technology that gives salt a far greater kick by making it re-crystallise into tiny hollow balls a fraction of the size of standard salt - has started to make waves across the Pond.

Likely cocoa price increases if Ivory Coast ban is extended, Rabobank

An indefinite extension of the Ivory Coast one month cocoa ban could lead to a further hike in cocoa prices, according to Rabobank analysts.

Recession raises fears over fake food products

The recession has increased the risk of potentially unsafe counterfeit and so-called ‘diverted’ food products, according to a firm specialising in packaging technology that helps prevent the problem.

11-Feb-2011

Cadbury integration hangover hits Kraft revenues

Despite robust overall growth, Kraft is still suffering from costs associated with its £11.5bn Cadbury purchase, according to the US giant's full-year accounts.

City: Could RF Brookes and Avana Bakeries be Greencore’s consolation prize?

With Greencore’s proposed engagement to Northern Foods now looking decidedly rocky, it might make sense for bosses to turn their attention to Premier Foods’ own-label bakery and prepared foods businesses, Avana Bakeries and RF Brookes, according to City analysts.

Company eyes European approval for 'revolutionary' anti-listeria ingredient

An anti-listeria ingredient that is added to meat products during the packaging process could mark a step-change in the fight against the foodborne pathogen, said Griffith Laboratories.

UK producers say they stand alone as DEFRA rules out cash for organics

DEFRA (the Department for Environment, Food & Rural Affairs) has ruled out financial support for the organic industry, despite producers saying they stand alone and a Soil Association (SA) report damning Whitehall’s “diffident, if not lazy” approach.

10-Feb-2011

Uniq gets green light for pension deal that leaves shareholders with just 9.8% of the company

A deal that will see Uniq tackle its gaping pension fund deficit by handing over more than 90% of its shares to its pension scheme has finally been cleared after months of negotiations.

Devon seafood firm completes £1m factory expansion

Devon seafood firm Paramount 21 has completed a £1m factory extension that will significantly boost its capacity and product range.

09-Feb-2011

Longbenton Foods Benton Lane staff pay issues resolved

Staff at Longbenton Foods' frozen ready meals factory in Longbenton have now received all of the outstanding money they were owed for their services in January, FoodManufacture.co.uk understands.

BRC: Responsibility Deal reformulation pledges will contain 'tangible commitments'

Details on pledges manufacturers will be encouraged to make about their commitment to reformulating products under the government's new 'Responsibility Deal' will be unveiled at the end of this month.

News in brief

Boparan says cash bid gives Northern shareholders certainty

BH Acquisitions – the vehicle by which Ranjit Boparan is seeking to acquire control of Northern Foods in a £342m deal – has sent out an official offer document to Northern shareholders.

Dairy Crest warns of higher milk and oil costs

Dairy Crest has met its profit expectations for the nine months to the end of 2010 but has warned of higher input costs over the coming year.

08-Feb-2011

Premier sells canning sites to Princes for £182m

Premier Foods has sold its canned grocery operations to Princes for £182m, including such iconic brands as Crosse & Blackwell, Fray Bentos and Smedley’s.

EFFP: Retail food price inflation set to peak at 6-7%

Downward pressure on the economy is likely to keep a lid on UK retail food price inflation, which will peak in the first few months of this year at around 6-7%, and then decline slowly, according to European Food and Farming Partnerships (EFFP).

News in brief

Findus Group launches Young’s Seafood Limited

The Findus Group has consolidated its UK fish operations by bringing together Young’s Seafood, The Seafood Company and Findus UK under one brand.

News in brief

Kettle Foods invests £6m in expansion at Norwich plant

Kettle Foods' new owner Diamond Foods is pumping £6m into the gourmet crisp maker's Norwich factory in a bid to meet growing demand.

Are you ready for the Agency Workers Regulations?

Employers hoping to avoid a hefty bill when new agency workers legislation comes into force by repeatedly terminating agency worker contracts at 11 weeks, 'stopping the clock' for six weeks and then rehiring them, could still fall foul of the law, legal experts have warned.

American Muffin Co ramps up production capacity

London-based baker American Muffin Co is adding a mezzanine floor to its factory in the Park Royal trading estate in a bid to meet growing demand.

07-Feb-2011

News in brief

60 second interview: Cornish Crisp Company sales manager Rachael Clayton

FoodManufacture.co.uk waylaid Rachael Clayton to talk about the challenges facing the fledgling Cornish handmade crisp producer, which only uses ‘taters’ grown in the county…

PoleStar Okehampton calls in the administrators

The administrator of the PoleStar Foods desserts factory in Okehampton say it hopes a buyer can be found that is able to re-employ some of the 232 staff at the site that have just lost their jobs.

Princes refutes Greenpeace claims on endangered tuna

Princes has rebuffed claims by Greenpeace that it sources fish from endangered species, but agreed to amend wording on tins "after listening to recent feedback".

City puts £120-180m price tag on Premier Foods' canning sites

Premier Foods could net anything between £120m and £180m+ from the sale of its East Anglian canning sites at Wisbech and Long Sutton, according to City analysts.

Government in talks to form new regional support network

Government and industry efforts are underway to create a regional support strategy for the food industry to replace the one offered through the Regional Development Agencies (RDAs), which are being axed.

04-Feb-2011

Longbenton Foods challenges staff wage claims

Longbenton Foods has denied claims made by some staff at its Benton Lane frozen ready meals factory in Longbenton, Newcastle Upon Tyne, that they have not yet been paid in full for their services in January.

EFSA to publish remaining article 13.1 opinions in three 2011 batches

The European Food Safety Authority’s health claims panel will complete its exhaustive article 13.1 generic health claims task by publishing three batches this year, with the first due at the beginning of April.

Cranberry may prevent recurrent UTIs (& so may the placebo)

Six months of cranberry juice consumption was associated with lower recurrence of urinary tract infections (UTIs), but so was placebo consumption, according to new data.

Study shows limitations and potential of Acrylamide Toolbox

The use of commercial enzymes to reduce levels of acrylamide is effective when applied to chilled, but not par-fried, French fries, suggests a new study from Belgium.

Big Bear Group snapped up by Glisten-owner Raisio

Sugar Puffs and Poppets maker Big Bear Group has been snapped up by Raisio in a £80m deal less than a year after it acquired snacks and confectionery maker Glisten.

03-Feb-2011

FSA to launch probe into ‘may contain’ labelling

The Food Standards Agency (FSA) plans to take a closer look at the prevalence of ‘may contains’ allergen advisory labeling.

PoleStar Foods staff demand answers from Privet Capital

Angry staff at PoleStar Foods’ desserts factory in Okehampton are looking for answers from bosses as to why they are now out of a job just weeks after being told the site’s future had been secured “for many years to come”.

Metabolic typing may bring dawn of personalised nutrition

Personalized nutrition – seen by many as the future of nutrition – may take a step closer as scientists apply the metabolomics approach to identify individual metabolic ‘types’.

Industry is missing energy shot potential in Europe, says analyst

Risk aversion and a failure to learn the marketing lessons from the US have frustrated the market for energy shots in Europe, according to a new report.

Kerry says brewers face major barley quality and supply challenge

European brewers have a fight on their hands to source quality malting barley during 2011, according to industry ingredient supplier Kerry.

News in brief

Unilever Q4: Sales up 5.1%; but operating margins hit by commodity price hikes

Unilever has beat analysts' expectations with a 5.1% rise in underlying sales in the fourth quarter, but said operating margins were dented by commodity price hikes.

Opinion

It's time to take the politics out of food ...

The media described the recent incident concerning dioxin in pork and egg products from animals fed with dioxin-contaminated feed as ‘a scandal’. But this is compounded by the needless and wasteful slaughter of expensively reared animals and the destruction of food that would not have hurt any consumer.

02-Feb-2011

Ocean Spray adopts dairy model for cranberry auctions

Ocean Spray will change its auction policies to add certainty to opening prices the cranberry leader said after closing its latest cranberry concentrate auction that saw prices rise 17 percent over three selling periods.

Production due to restart at Rossa Dairy Products

Payne’s Dairies has bought the premises and machinery formerly owned by Leicester ice cream firm Rossa Dairy Products and aims to restart production onsite.

Allied Bakeries: Carbon foot printing a catalyst for efficiency

Analysing the carbon footprint of Kingsmill loaves has helped Allied Bakeries squeeze out additional cost savings that it would not have extracted through traditional continuous improvement techniques, its operations director has claimed.

Natures Way Foods to create up to 380 new jobs

Bagged salads and prepared fruit specialist Natures Way Foods has secured planning permission to build a £14m packhouse in Runcton that will create 110 permanent jobs and up to 270 flexible roles.

01-Feb-2011

PoleStar Foods axes 232 jobs at Okehampton factory

232 staff have been made redundant at PoleStar Foods' Okehampton desserts factory just two months after Privet Capital stepped in to buy the business.

GLA: Groceries adjudicator must take interventionist approach

The Groceries Code Adjudicator must take an interventionist approach rather than simply reacting to complaints if it is to have any teeth, according to the boss of the Gangmasters Licensing Authority (GLA).

News in brief

City: Cranswick well-positioned to diversify

With recent capex projects to increase capacity and boost efficiency now bedding in nicely and a strong balance sheet compared with rivals, Cranswick is well-placed to diversify into new product areas, according to City analysts.

Firms face toughest price negotiations 'in living memory'

Commodity price hikes are presenting some manufacturers with their toughest negotiating environment “in living memory”, with retailers delisting or suspending products not meeting their price demands.

Chefs ‘risk poisoning their customers’ with flash-fried chicken livers

Trendy chefs who offer pâtés prepared with undercooked ‘flash-fried’ chicken livers are putting their customers at risk of food poisoning, a microbiological expert has warned.

Fewer accidents at work should mean lower premiums, say experts

A reduction in accidents should lead to lower insurance premiums for manufacturers across the food and drink sector, according to experts in the field.

Cold pasteurisation starts to hot up

High pressure processing (HPP) or so called ‘cold pasteurisation’ could very soon be combined with heat to inactivate food spoilage spores, something HPP alone cannot achieve.

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