23 jobs to be sliced at Allied Bakeries

09-Aug-2015 - Last updated on 10-Sep-2015 at 13:53 GMT

Allied Bakeries recently invested £210M in modernising its bakeries

Related tags Allied bakeries Associated british foods

Allied Bakeries, owner of the Kingsmill, Burgen, Sunblest and Allinson brands, is to cut 23 jobs in a streamlining exercise.

A spokeswoman for the bakery, which is part of Associated British Foods (ABF), told FoodManufacture.co.uk the jobs under review were “management and administrative roles in central functions based in Maidenhead and Liverpool”.

One of the roles believed to be under consultation is that of Martin Garlick, head of category and shopper. Garlick joined the company from Warburtons in 2013 and has been responsible for the development and delivery of the Burgen Gluten Free bread launch.

Allied Bakeries declined to confirm or deny whether the head of category and shopper role would be impacted.

Asked about the reason for the cuts, the company spokeswoman said: “We believe this will make us more efficient as an organisation as we remove cost and share activities more effectively across fewer roles.”

Consulting about the proposal

The bakery said it was currently consulting with employees about the proposal, which was first reported by FoodManufacture.co.uk's sister title, BakeryInfo.co.uk.

“Every effort, including professional outplacement support, will be made to secure alternative employment either within Allied Bakeries, the broader ABF group or externally in their local area,” said the spokeswoman.

News of the move came just two months after former Twinings boss Jon Jenkins became md of the baking business. Twinings is another ABF company.

It also came just months after the completion of a £210M investment programme by the company to modernise its bakeries.

It is not the first time that Allied Bakeries has shed jobs. Approximately 170 employees lost their jobs last year when it closed its Orpington factory.

Struggled to remain profitable

The bakery has struggled to remain profitable in recent years, blaming an “intensely competitive” UK bakery market.

In ABF’s interim results earlier this year, the group said that Allied Bakeries’ reduced profitability “was driven by a combination of over-capacity in the industry, reducing manufacturers’ margins, and retailers seeking to prove their value credentials in essential shopping items such as bread.”

Tesco’s decision in March to delist Kingsmill bread dealt another major blow to the firm, although it said the lost volume had been replaced elsewhere.

Meanwhile, two of the delisted Kingsmill loaves dropped by Tesco had been reinstated earlier this year.

Last month the supermarket began to restock Kingsmill 50/50 and No Crusts in the majority of Tesco stores.