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May 11, 2015

Heinz to offload UK baby food plant

Heinz has struck a deal to sell a UK baby food plant to new local firm Kendal Nutricare.

By Dean Best

Heinz has struck a deal to sell a UK baby food plant to new local firm Kendal Nutricare.

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The company is to offload its factory in the Cumbrian town of Kendal for an undisclosed sum.

Heinz said the proposed transaction "offers a positive future for the factory and for the 92 people employed at the site".

The plant has had its challenges in recent years. In 2013, Heinz cut 45 jobs at the site, blaming the cost of shipping infant milks to China. At the time, the factory employed 170 staff.

The deal with Kendal Nutricare includes a two-year contract for the new owner to manufacture Heinz infant cereals for the UK market and Heinz infant formula for China.

In a statement, Heinz described Kendal Nutricare as "a newly-formed private company with an experienced management team with specialist expertise in infant formula and dairy processing, raw material suppliers’ network accreditation standards, and international sales".

Kendal Nutricare is listed online as having been registered in January. Ross McMahon is said to be the company's sole shareholder. He had not returned a request for comment at the time of writing.

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Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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