Kellogg’s has put hundreds of UK jobs at risk after revealing plans to close one of its major factories.
The site in Trafford Park, Greater Manchester, could cease operations by the end of 2026 under the proposals.
The group has started a consultation with the 360 employees potentially impacted.
The factory makes Corn Flakes, Rice Krispies and Coco Pops and is considered to be too old to modernise.
The 520 staff Kellogg’s employs at its MediaCity head office are not impacted by the announcement alongside staff at its Wrexham factory and distribution centre in St Helens.
‘We now want to focus on our people’
In a statement, UK managing director Chris Silcock said: “We know generations of families have worked at our Trafford Park site, and the proposal we are announcing today has nothing to do with the dedication of the outstanding people who work there.
“However, we can’t escape the fact the site opened in 1938. It’s laid out in a way that made sense in the 1930s, with food travelling up and down six floors to be made. With changes in industrial design and technology, you just wouldn’t lay out a factory like that nowadays.
“What’s more we only use half the space in the buildings and the investment required to maintain the factory in the coming years is simply not viable.
“That’s why we can’t currently see a long-term future for our Trafford Park factory.
“We know this will be difficult for many to hear and that’s why we now want to focus on our people.
“We will take the necessary time to discuss our proposals with our people and their representatives and show them how we will support them in the right way should this change happen.”
‘Sustained momentum in Pringles’
The group, whose ultimate parent company split and rebranded last year, operates two main UK businesses: Kellogg Marketing and Sales Company (UK) and Kellogg Company of Great Britain.
As a result of the corporate restructure last year, brands including Pringles, Pop-Tarts and Nutri-Grain now sit under the Kellanova banner alongside the likes of Frosties, Special K and Coco Pops.
The news comes after new documents revealed that continued popularity of Pringles crisps helped Kellogg’s UK sales pass the £1bn mark.
According to recently- filed documents with Companies House, the turnover of Kellogg Marketing and Sales Company (UK) increased from £801.2m to £913.9m in 2022 while its pre-tax profits rose from £21.1m to £24.1m.
Kellogg Company of Great Britain‘s turnover also grew from £128m to £143.4m and its pre-tax profits went from £9.3m to £13.6m.
Kellogg’s UK results for 2023 are due to be published on Companies House by the end of September this year.
A statement signed off by the board said: “Growth in turnover primarily driven by an increase in snacks set sales, led by sustained momentum in Pringles, driven by innovation, effective advertising and successful consumer promotions.
“Cereal net sales were also up in the year, however, partially offset by unfavourable foreign currency.
“Reported operating profit increased primarily due to overall higher sales, which was driven by both volume and price mix.”