Blog: Dean BestNorthern and Ethnic Cuisine: then and now

Dean Best | 23 April 2010

So, we are set to see more consolidation in the UK convenience food business, not on the M&A front but, as Bakkavor CFO Richard Howes predicted on these pages earlier this month, through capacity being taken out of the sector.

The Ethnic Cuisine business in Swansea looks set to close, the latest ready-meals site shuttered or mothballed by Northern Foods in recent months.

Northern acquired Ethnic Cuisine in 2007. Back then, the company described the unit as a “profitable business” with a “strong reputation for producing high-quality ready meals".

However, yesterday, Northern changed tack, with the company admitting that the site was “struggling” at the time of its acquisition and required “significant” levels investment.

The imminent closure of Ethnic Cuisine is unlikely to be the last we hear of downsizing in UK ready meals.

 


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