Costly cream forces businesses to fold

THE rising price of cream has sent a pair of Widnes companies into administration.

Administrators from KPMG have taken control of sister firms Key Food Ingredients Ltd and Simplea Food Products Ltd of Dennis Road.

The Key Foods arm imports butter and cream and uses them to make ghee, widely used in Indian cookery, and butter oil, which is used in the confectionery and baking industries.

Simplea Foods makes cooking products, including pureed garlic and cooking sauces, as well as offering a Mediterranean range of marinated olives, antipasti and pestos.

The business employed 44 people – and 39 of them have been kept on by administrators as they look to sell the closelylinked businesses.

Joint administrator Paul Dumbell said: “Whilst historically a successful business, more recently the financial performance of Key Foods has been impacted by the volatile commodity prices of bulk cream and butter.

“In particular, the company was hit by a sharp increase in the market price of cream between April and July 2016, ultimately resulting in this administration appointment.

“In addition to securing the assets of the business and streamlining operations in an attempt to continue to trade, the joint administrators are now exploring a sale of this unique local business.”