Sector News

Raisio to restructure its UK cereal business

October 12, 2015
Food & Drink

Raisio’s Snack & Cereal business targets growth in its key markets in Finland and the UK.

The UK’s Snack & Cereal business includes snack bars and breakfast cereals. In terms of the cereal business, achieving the growth target requires streamlining of cost structure, restructuring of operations to respond to the current operating environment and market conditions as well as product range meeting consumer needs. Raisio will enter into a consultation process in the UK concerning the employees and activities of the Southall site located near London.

In recent years, consumer behaviour and the demand for breakfast cereals have been changing in the UK. This has led to the decline of the entire cereal market and increased competition. Sales volume for Raisio’s cereals has decreased and profitability of the business has turned negative. With the reduced sales volume, fixed costs of the Southall site further restrict profitability improvements despite the efficiency improvements already carried out.

The consultation process in line with the British legislation concerns 99 employees at the Southall site. As alternatives, Raisio is considering a proposal to relocate or outsource the manufacturing currently based at Southall, whilst considering a possible site closure.

Tomi Järvenpää, Vice President of Raisio’s Snack & Cereal unit, says that a lot has been done with the current operational model to improve the profitability of the Southall site and to have cereal sales back on growth track. “To ensure future success, it is extremely important that we develop our activities so that our product range meets current and future consumer needs and that we maintain our competitive edge in local and international markets. Raisio’s strength is the ability to innovate delicious, healthier and ecological snacks.”

Source: Raisio

Related News

April 17, 2021

Ramadan fasting during COVID-19: Experts weigh in on immunity research

Food & Drink

Fasting during the COVID-19 pandemic brings new considerations, but a recent research review from the University of Doha, Qatar, suggests fasting during Ramadan may have a positive impact on immunity strength.

April 17, 2021

Unilever packaging director: E-commerce boom provides opportunities for new refillable packaging formats

Food & Drink

Ahead of the Rethinking Materials Summit (19-20 May), PackagingInsights sits down with Hugo Menilo, Unilever’s global foods packaging director to discuss their explorations in bio-based packaging, advanced recycling, refillable e-commerce solutions and more.

April 17, 2021

Heineken pledges carbon neutrality across value chain by 2040

Food & Drink

The announcement marks the first in a series of refreshed Brew a Better World ambitions, which form part of the company’s new EverGreen growth strategy.

Send this to a friend