Premier Foods factory woe

Mr KIPLING cake firm Premier Foods plans to close a factory in a move affecting about 300 jobs.

Its Knighton site in Staffordshire, is ‘marginally’ loss-making’, and it is launching a consultation with the 300 workers under a process that will run to the middle of 2023.

But the site, which largely makes unbranded powdered drinks is likely to continue operating into 2024 before shutting.

The group, which also makes Oxo cubes and Bisto, has 15 UK factories and employs 4,000 people. ‘It is recognised that this will be an unsettling time for those 300 colleagues who are potentially affected by these proposals and they will be fully supported and consulted,’ Premier said.

The move is set to cost it around £10m in closure costs, but Premier said that shutting the factory will boost trading profits in the long run.

Details came as the company reported a 12pc hike in group sales over its third quarter to the end of December.

It said that it was offsetting soaring costs with price rises and cost savings. Grocery sales jumped 17.4pc over the quarter, and sales of its branded products climbed by 15.5pc.

Its sweet treats, such as Mr Kipling, angel, lemon and chocolate slices, did not fare so well, with sales down 0.9pc as branded sales plunged 10.8pc, partially offset by a 22.8pc surge in nonbranded sales.

The group said that sales of Cadbury cakes were hit by unscheduled maintenance at one plant line, ‘which has since been completed and full production now resumed’.