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Nestlé brings out the Branston for a disposal

Our City Staff
Friday 01 February 2002 01:00 GMT
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The food giant Nestlé yesterday revealed plans to sell its UK Crosse & Blackwell to Branston Pickle business, in a move that would cost more than 100 jobs.

Nestlé said it was seeking a buyer for the ambient foods operation that also houses Gales Honey, SunPat peanut butter and Rowntree's jelly. "Ambient" foods can be left at room temperature ­ as opposed to chilled foods, for example.

A dehydrated products factory in Aylesbury, Buckinghamshire, will close later this year with the loss of 114 jobs.

Separately, Nestlé also said it would acquire the Ski and Munch Bunch brands of chilled dairy desserts from the Hull-based Northern Foods. The deal, worth £145m, includes Northern Food's yoghurt-making facility at Cuddington, in Cheshire. Northern Foods said it would book a profit of £54m from the cash sale.

Nestlé said the acquisition boosted its position as number two in the chilled dairy market sector with combined total sales of £125m. Nestlé will also be left with its beverages, confectionery and milks and nutrition businesses in the UK. Its ambient foods operation has a turnover of £100m a year. As part of any sale, 330 workers at Hadfield, in Derbyshire, and Middleton, Greater Manchester, will transfer to the new owners.

Nestlé UK's chief executive Alastair Sykes, said: "We are seeking to find a potential purchaser as quickly as possible for Hadfield and Middleton, thus minimising any uncertainty for our employees."

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