View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 10, 2022

Zwanenberg Food Group blames rising costs for site closure

The Dutch company intends to stop the production of sausage and soups at its Voorthuizen factory next year.

By Andy Coyne

Dutch manufacturer Zwanenberg Food Group is planning to close a domestic facility as a result of rising costs, it has announced.

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.

The Almelo-based company intends to stop the production of sausage and soups at its Voorthuizen factory next year. Output will expand at its facility in Oss instead.

In a statement, company CEO Maarten Elsinga said: “At the moment we are confronted with enormous cost increases in the entire supply chain: raw materials, energy, logistics, packaging, etcetera. We expect that we will not be able to pass on these cost increases to our customers in full and with delay. As a result, we have no choice but to immediately implement substantial cost-saving measures.”

Zwanenberg also pointed to duplication of production following its merger with local peer Struik Foods in 2020.

It said: “Zwanenberg Food Group [now] has four production locations for canned goods in the Netherlands. To a large extent, the same activities take place at these production sites.”

Elsinga said: “After considering various alternatives, we have come to the conclusion that ending our production in Voorthuizen is the best choice. This will enable us to achieve our objective in the relatively short term. This project is expected to be completed in the course of 2023.

“The core of this step is that we will soon produce the same volumes with one factory less.”

Zwanenberg said its objective is to retain as many Voorthuizen workers as possible and plans to discuss this with employee organisations.

The factory employs 145 full-time employees and up to 55 temporary or seasonal workers. The company’s closest site to Voorthuizen is in Raalte, which is 70 kilometres away, while the Oss facility is 80km away.

Zwanenberg employs around 1,800 people at locations in the Netherlands, the UK and the US.

It produces meat preserves, snacks, soups, sauces, convenience meals, vegetarian and vegan products and owns brands including Zwan, Kips and Chicken Tonight, having bought the Dutch rights for the cook-in sauce from Unilever in 2019.

It has annual net sales of around EUR600m (US$661.7m).

A Zwanenberg spokesperson said he could not provide a cost-saving figure from the closure of the Voorthuizen facility when asked by Just Food but said it would be “substantial”.

Related Companies

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.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food