Nestle could keep production of UK biscuit brand Blue Riband in the country with a “one-off” investment of GBP1m (US$1.3m), local union the GMB has claimed in its latest bid to put pressure on the company not to shift output to Poland.

The GMB claimed it had learnt during talks with Nestle the world’s largest food maker could continue manufacturing Blue Riband in the UK and “save 300 jobs” with “a one-off capital investment of just over GBP1m”.

In April, Nestle announced plans to shift the production of its UK-centric Blue Riband biscuit brand to a plant in Poland. The move was part of a wider “efficiency” programme Nestle set out across its UK confectionery business, which is set to lead to the loss of 298 jobs across four facilities.

In its latest bid to get the plans reversed, the GMB criticised Nestle and the UK government. The union cited a UK government minister revealing it had met Nestle in April to discuss the company’s plans for jobs and investment.

“UK manufacturing workers deserve better, especially when they see Nestle investing millions in Spanish sites to renovate production lines,” GMB national officer Eamon O’Hearn said, pointing to the Swiss food giant’s move to spend more than EUR2m on an infant formula plant in Spain.

O’Hearn added: “If Government ministers met and knew about the job losses at Nestle UK as far back as April, it begs more questions – what did this Government know and why hasn’t it acted already to stop these manufacturing job losses?”

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.

Nestle had not returned a request for comment at the time of writing.

Earlier this year, Nestle CEO Mark Schneider, who joined the KitKat maker in January, said the company would be spending more on “restructuring” measures this year than in 2016 “to drive future profitability”.

Schneider said in February Nestle would spend around CHF500m (US$518.3m) in 2017 on restructuring initiatives. Last week, when Nestle announced its results for the first quarter of 2017, the company underlined it would “increase restructuring costs considerably in 2017”.

Last week, Third Point, a US hedge fund controlled by Daniel Loeb, took a stake in Nestle equivalent to about 1% of shares and called for a strategy shake-up at the company.

Forty-eight hours later, Nestle outlined where it plans to focus its resources on trying to drive growth, including in the consumer health sector. The company also announced its board had approved a move to buy back shares worth up to CHF20bn. The buyback is scheduled to be completed by the end of June 2020 but Nestle said if it moves to make “sizeable acquisitions” the share purchases would be “adapted accordingly”.