UK – Canada-based food company McCain Foods has revealed plans to close down its production facility in Grantham, Lincolnshire, after a review of its UK business operations and product portfolio.
McCain Foods seeks to halt the production of its Fries To Go line of microwave fries, which are outside of the company’s core product range and are solely produced in the Grantham facility. The closure will affect 115 employees.
The product and operations review follows flattening revenues recorded in the UK as profit margins declined amid high potato prices. Prices have soared from the start of the year owing to poor weather conditions, creating supply challenges.
The company’s decision to streamline its product offering, sticking to core McCain potato products is viewed as a response to these supply challenges, ensuring only core high-performing products remain active in the market.
According to McCain Foods, the decision will ensure the company remains efficient, sustainable, and customer-focused.
Jillian Moffatt, McCain Foods’ Regional President for Great Britain, said, “McCain has operated in Grantham for over 40 years, and we are grateful for the significant contribution and commitment of the site team throughout that time.”
“This proposal has been a difficult decision and we are committed to ensuring a thorough and considered consultation period. It is our priority to ensure that every colleague is given our full support during this process.”
The closure was announced barely a few months after the company revealed plans to invest €350 million (US$378 million) in France to develop three new production facilities and strengthen its competitive presence in the country.
The three new French facilities, expected to be complete by 2028, will be located in Harnes and Béthune villages in Pas-de-Calais and Matougues village in the Marne region.
As such, the decision to close down the UK facility in favor of the three new facilities in France is considered a strategic response to the potato crisis in the UK. It should ensure enhanced production at a lower cost while maintaining distribution in Europe. The company revealed the new production facilities should increase production volume by 25%.
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