Uniq to end yogurt production at Minsterley

18-Jul-2011 - Last updated on 20-Jul-2011 at 11:11 GMT

Related tags Desserts Management Uniq

Yogurt production at Minsterley will end next April.

Uniq Desserts will end yogurt production at its Minsterley, Shropshire plant in April 2012, raising doubts about the security of around 50 jobs.

The plan to end production was unveileved in a joint statement outlining Greencore’s recommended cash offer for Uniq.

“Despite Uniq’s intention to build its capability and customer base for its premium, differentiated yoghurt at Minsterley, a further reduction in the margins achievable in this sector has lead Uniq to conclude that the returns it can realise from this category are insufficient to justify further investment in capital,” the statement said.

“Consequently, the Uniq directors have decided to withdraw from yoghurt in April 2012. This is likely to result in a number of employees being at risk of redundancy and a consultation process has commenced at the site.”

Significant impact

But the loss of this business is not expected to have a significant impact on the financial position of the Minsterley site, continued the statement.

A consultation process with workers potentially at risk of redundancy has already started.

Minsterley site md Steve Hill told the BBC that the reason for the decision was "in no way a reflection on the levels of quality and service that the yogurt team has been consistently delivering over the past few years".

David Leeson, chairman of Minsterley Parish Council, told FoodManufacture.co.uk that central government should do more to support businesses in rural areas. “If companies are struggling, we would like to see help from central government. Funding-wise, the perception is that rural businesses are being left behind. Uniq is a big business in this area.”

Problem child

Last week, Geencore ceo Patrick Coveney told FoodManufacture.co.uk that he was satisfied with the development plans for Uniq’s Minsterley division – described by Shore Capital analysts, Darren Shirley and Clive Black as “a well-known problem child.”

Coveney said: “It is no secret that Minsterley has struggled over the years but a clear plan is in place. The management team is pruning some activities and focusing the portfolio on high value products.”

Coveney also said that he was “highly confident” that his company’s £113m cash offer for Uniq will be successful.