Irish confectioner Zed Candy has insisted it is focused on driving growth of the business as it announced the closure of its domestic manufacturing site.
The company is closing its prodution facility in Letterkenny in County Donegal, and transferring production to its Tilly’s site in Kettering in the UK.
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Speaking to just-food this afternoon, Zed co-owner and MD Donal Kavanagh said that he expected the move to generate “significant” cost savings.
The planned closure of the facility is expected to impact 15 jobs in Ireland, where Zed is in ongoing negotiations with the unions, Kavanagh said. Jobs are expected to be created in the UK as a result of increased production, he added.
The Tilly site will raise its production from 85 tonnes of candy per week to 105 tonnes per week, Kavanagh revealed.
Kavanagh insisted the move was part of Zed’s ongoing expansion efforts. Tilly’s has seen sales increase by 25% over the last 18 months, while the group’s international business has increased revenue by 20% in the same period, he revealed.
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By GlobalData“There is a resurgent demand for quality, old-fashioned confectionery,” he commented. “We are growing and driving our business.”
Zed exports confectionery to 70 countries worldwide and has recently entered Venezuela, Bolivia, Angola and Rwanda, Kavanagh said. The group also operates one manufacturing facility in China, a market it entered in 2008, where it produces 100 tonnes of confectionery per week.
