Cereal Partners Worldwide, the breakfast-cereal venture between Nestlé and General Mills, is planning to sell a pair of plants in France and the UK.
The sites in question – Itancourt in northern France and Bromborough, north-west England – were both part of reviews announced in December and March, respectively, due to challenges and sales declines in the cereals category.
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In a statement provided to Just Food today (13 August), Cereal Partners Worldwide (CPW) said Ecco Group is “considering the acquisition” of the two facilities, with employees at the plants advised accordingly.
The objective, CPW said, is “creating a European player in the supply of private-label breakfast cereals”.
Headquartered in Munich, Germany, Ecco Group “specialises in corporate carve-outs”, according to its website, which adds that the business provides “customised solutions that support companies in successful carve-outs and transformations – from acquisition to operational optimisation”.
Itancourt will be the subject of a partnership, CPW said.
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By GlobalData“A co-manufacturing agreement would be established between the buyer and CPF [Cereal Partners France] to secure a transitional activity and the ramp-up of operations at the Itancourt site over a three-year period,” the statement read.
Meanwhile at Bromborough, “the proposal is to acquire the private-label cereal manufacturing capabilities”, CPW added.
Just Food has asked Ecco Group to confirm the talks with CPW and the nature of its future plans should the transaction go ahead.
With respect to the Itancourt site, CPF said in December that the review would look to see how the business could “better address competitiveness challenges” in the cereals market in France and Europe.
CPF added there had been a “structural decline” in the category since the end of the 2010s. Consumers have “abandoned” what the company called the “wellness” segment for muesli and granola.
Around 85% of the factory’s production is shipped outside France, principally to Europe and countries including the UK, Portugal, Spain, Germany, Italy and Greece. The site makes products under brands including Fitness, Chokella and Crunch.
The Itancourt facility employs around 250 people. When the plans for Bromborough were revealed in March, CPW said 314 jobs could be at risk. The UK site produces branded cereals such as Cheerios and supermarket own-label products.
Today’s statement from CPW added: “Cereal Partners has been committed to protecting jobs in its search for a buyer for the sites.
“Our priority remains our employees, and our focus will be on working with them, their representatives and ECCO Group on the next stages of this process, including information and consultation processes with employee representatives.”
