UK: Weetabix confirms plan to cut pay, hours
Weetabix said to be feeling pressure of struggling breakfast cereal market in UK
Weetabix has announced plans to cut staff pay and hours in the UK, a reaction believed to be prompted by increasing pressure from supermarket own brands and discount food retailers.
In a report carried by The Daily Telegraph, the Alpen, Ready Brek and Weetos owner has warned staff it needs to cut costs by millions of pounds within the next three months.
In an email to just-food today (7 April), a spokesperson for the firm confirmed: "The Weetabix Food Company is consulting with its trade union representatives to explore potential changes to shift patterns and associated payments."
Reports suggest Weetabix managers had been advised to tell staff sales at the firm were 3% lower than expected last year. As a result, plans for a 2.5% pay rise staff were promised had now been scrapped. Weetabix did not respond when questioned on this.
Trade union Usdaw said: "We have recently commenced on-going discussions with Weetabix in relation to a number of proposals put forward by the company."
The trade union declined to comment on whether the decision was due to Weetabix facing pressure from own brands and discount retailers and whether the 2.5% payrise would be scrapped.
Weetabix, majority owned by Chinese state-backed group Bright Food, is reported by The Daily Telegraph as saying: "Weetabix has always tightly managed its cost base in order to allow the company to drive growth. The breakfast category is dynamic, and the company needs to be able to adapt to meet the changing needs of today's modern families."
Australian food group Sanitarium has developed a reduced-sugar version of its breakfast drink brand Up & Go for its domestic market....
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- Why Danone is withdrawing Dumex from Vietnam
- Why May's Brexit comments give reason for optimism
- 2 Sisters chief Boparan buys Bernard Matthews
- Fonterra says value-added strategy paying off
- B&G Foods acquires ABF's US spice business
- General Mills profit falls as sales disappoint
- Bernard Matthews pensions scheme under review
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- Global Foodservice Market 2016-2020
- Global Food and Drinks Closures: Performance and Opportunities
- Fast Food Restaurants in the US - Industry Market Research Report