UK – Müller Milk & Ingredients has begun reviews on its food service delivery operation supplying fresh milk and other products to 3,000 non-residential customers in England and Wales as it suffers losses of around US$7.1million per annum.
The company has confirmed a 45 day review and consultation, placing 250 roles at risk of redundancy.
It plans to use the time to assess whether existing food service customers, which include workplaces, restaurants, pubs, bakeries and contract caterers, can be better serviced in other ways by Müller or by alternative providers.
The household and educational business managed by sister company; Milk & More is not affected by the review and consultation.
Müller is fully committed to its strategy to build all aspects of this business.
“Whilst the Müller Milk & Ingredients food service operation is a very small part of our overall business, it is vital that it is profitable and viable.
It is clearly unsustainable in its current format,” said Andrew McInnes, Managing Director at Müller Milk & Ingredients.
“We would therefore like to take this time to assess the role and fit of this part of our business within our wider strategy for the future, and determine whether there are better and more sustainable ways to supply the needs of our smaller food service customers.”
Müller has stressed that it will work to fully evaluate and understand the most appropriate course of action for its employees, customers and the food service business.
The outcome of the review will not be determined until this work is completed.
The company is also committing unprecedented levels of investment to secure a sustainable and vibrant future for Britain’s biggest fresh milk and ingredients business.
Müller Milk & Ingredient’s strategy has three focuses; improving the capability and profitability of its existing business; continuing to develop products which add new value to the categories and markets it serves and evaluating and entering new, growing channels and markets for its products.
The food service delivery operation was acquired two years ago as part of the Dairy Crest dairies business, and represents less than 2% of the company’s turnover.