Kellogg has confirmed it is planning to close its only cereal manufacturing plant in Germany.
A Kellogg’s spokesperson told just-food today (13 October) the closure of the Bremen facility is part of a plan “to get back to sustainable business growth in Europe”, which requires the US snacks-to-cereal giant to “stabilise” its core cereal business.
“We have completed a thorough analysis of our cereal network, the spokesperson said. “We have more manufacturing capacity than the business demands, so we unfortunately need to plan to close one of our cereal manufacturing plants. The European cereal plant with the largest annual volume decline is the Bremen plant.”
Kellogg did not specify a schedule for the plant’s closure, but the company has started talks on “proposals and next steps” with local representatives and is set to start consultations with employees’ representatives.
“We understand the challenges our employees face as a result of this planned closure and we are making every effort to support potentially impacted employees through this process,” the spokesperson said.
Kellogg did not comment when asked where products sold in Germany are to be manufactured.
The company invested around US$20m in a new production line at Bremen for the production of its Special K cereal in 2004. In 2010, the company announced that it had brought together the management of the business of its German and Scandinavian markets at the Bremen site.
In 2015, Kellogg announced the launch of New Special K cereals across Europe in the second half of the year and said mueslis had just been introduced in Germany with plans to roll these out across other parts of the region.