Arla Foods has announced that it will close several UK sites and restructure its corporate group functions as part of the company’s Calcium cost-saving programme.
Responding to the company’s exposure to the British pound and unfavourable developments in commodity markets, Arla says that it will close its Llandyrnog creamery and its Malpas and Lockerbie packing facilities, which will put up to 154 jobs at risk.
Cheddar cheese production from the Llandyrnog creamery will be consolidated into its Taw Valley and Lockerbie creameries, while the company’s cheddar cheese packing operations will be integrated into its Oswestry packing site.
Meanwhile, the company will streamline its corporate operations and support functions, such as finance, legal & IT, corporate strategy, member relations, HR and corporate affairs.
195 employees are expected to be made redundant, predominantly at the company’s head office in Aarhus, Denmark, but will also affect some corporate roles in Arla’s other European administrative offices.
The changes comes as Arla seeks to save up to more than €400 million by the end of 2020 through improved efficiency in all areas of the company as part of the Calcium initiative, which was implemented last month.
CEO of Arla Foods, Peder Tuborgh said: “We want to achieve the goal of building a stronger, more competitive Arla, which serves our customers and consumers better and provides higher returns to our farmer owners and that requires us to make tough decisions.
“In order for Arla to continue to deliver on our Good Growth 2020 strategy that brings innovative dairy products to millions of consumers around the world, we must become one of the most agile and frontline-obsessed companies in today’s fast-paced and complex global food industry.
“It is never easy to say goodbye to valued colleagues, especially in these circumstances, and I would like to thank those people who are leaving us for the contribution they have made to Arla Foods, and I wish them well for the future.
“We will provide our full support to those colleagues affected during this process.”
A new wave of brands is emerging that promotes indulgence and rejects the notion of sacrifice. Low-maintenance “hangover” beauty products are designed to address the effects of late nights and partying without judgment or hassle, and even include cosmetics that are formulated in a way that means you can fall asleep in your makeup without feeling guilty.
The pilot will allow the company to scale circular packaging in about 18 markets over the next three years, an approach that jumps on the success of similar efforts in the company’s Indonesia ecoSPIRITS program, which launched in 2022 and is active in 38 bars.
Unilever’s focus on purpose across its brands has been a source of criticism from some of its investors. Its new CEO Hein Schumacher says the company now recognises there are some brands where the concept is simply not relevant.