Australian food manufacturer Goodman Fielder has insisted it is “committed” to the bakery sector after closing three plants as part of a restructuring of the division.

Goodman Fielder’s profits have come under pressure in recent months and it is undergoing a major review of its operations to make it more competitive.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

On Monday (25 June) the company said it would shut three bakery facilities in a bid to create a “more sustainable business” in the sector. High input costs, discounting and competition from own label has hit Goodman Fielder’s bakery busines.

When asked if quitting the bakery industry was on Goodman Fielder’s agenda, a spokesperson said: “We remain committed to our baking business which is why we are undertaking the series of initiatives to create a more efficient and profitable baking model.”

The closures will lead to the loss of 115 jobs, bringing the number of staff who have faced the axe to 541 in the group’s current financial year.

See Also:

The company also announced plans to further streamline the number of bakery products it sells.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In its supply chain, Goodman Fielder has switched from a vendor to a contractor distribution model in Tasmania. The company said further changes could also be made elsewhere in its supply chain for bakery products.

“Trading conditions remain challenging and we need to ensure we can respond by reshaping our business accordingly,” the spokesperson said. “These measures are part of our overall strategy to improve our manufacturing and supply chain efficiency. The baking market has become increasingly competitive and trading conditions are difficult for a number of reasons. That includes price but it also includes other factors such as rising cost pressures.”