Müller to review UK food service delivery operation, putting 250 jobs at risk
The company has confirmed a 45-day review and consultation of the operation, which it says is suffering losses of around £5m ($7.1m) per annum.
Müller said it will 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.
Affected sites
Müller told DairyReporter deliveries are made from 23 Milk & More Fulfilment Centres in the Midlands, Wales and Southern England. Commercial and administrative services are provided from within the Müller Milk & Ingredients and Müller Services operations.
The affected roles are located in a number of centers: Stoke on Trent, Mansfield, Norwich, Colchester, Keynsham, Edmonton, Camborne, Cardiff, Swansea, Plymouth with some potential impact also in Cambridge, Poole, Oxford, Camberley, Nine Elms, Burgess Hill, Wolverhampton, Ashford, Southampton, Parkwood, Newton Abbot, Taunton and Newport.
There are some administrative roles at risk at various Müller sites.
Part of Dairy Crest takeover
Andrew McInnes, managing director at Müller Milk & Ingredients said the Müller Milk & Ingredients food service operation is a very small part of the company’s overall business, but added it is vital that it is profitable and viable.
“It is clearly unsustainable in its current format,” McInnes said.
“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.”
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.
