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March 5, 2019

Vion Food Group pumps EUR35m into Netherlands site in plant consolidation

Netherlands-based meat business Vion Food Group is investing in a plant in the south of the country as part of a consolidation process.

By Dean Best

Netherlands-based meat business Vion Food Group is investing in its plant in the town of Boxtel as part of a consolidation process.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
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  • Five-year forecasts and the impact of COVID-19
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  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
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Vion plans to spend EUR35m (US$39.6m) to modernise the facility in “order to further increase its competitiveness on the national and international meat markets”, according to a statement posted on its website. 

Some of the fresh meat production carried out at the company’s site in the town of Scherpenzeel, located in the Dutch province of Gelderland, will be transferred to Boxtel in the south of the country.

Vion said the “majority” of the 120 workers employed in the fresh division at  Scherpenzeel will be relocated to its other factories in Boxtel, Apeldoorn and Groenlo, or “will leave by means of natural labour turnover”. Around 20 workers may not find relocation a suitable possibility, Vion said.

It expects to complete the transfer by the middle of 2021. 

Vion noted the operational transfer “will shorten the supply chain, which will result in an improvement in the quality and freshness of the meat and more efficient production”.  

John de Jonge, the chief operating officer at Vion Pork, added: “This investment in a more integrated production is an important step for Vion. It will improve our international competitive position and the quality of our products. Optimising the production chain is one of the focal points in our strategy.”   

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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