Bird’s Custard factory to shut putting 300 jobs at risk

PREMIER FOODS, the owner of Mr Kipling and Ambrosia, is to shut a factory where it makes Bird’s Custard in a move that puts 300 jobs in danger.

The company said the site, in Knighton, Staffordshire, had become unprofitable and did not align with the

company’s broader strategy. In addition to custard, it also manufactures Marvel Skimmed Milk Powder and other unbranded powdered beverages.

A spokesman for Premier Foods said: “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 with throughout the process.” The facility currently generates about £27m in sales for Premier, and is expected to cost roughly £10m to close.

Premier is one of the largest food manufacturers in Britain and employs more than 4,000 people. It owns household brands including Bisto, Loyd Grossman, Oxo, Sharwood’s and the Spice Tailor.

The company posted a 12pc rise in sales over the 13 weeks to Dec 31, compared with the same period last year.

Its sales of sweet goods dipped after the business faced production issues on its Cadbury Cakes products, although it has since resumed full production.

Its new healthier Mr Kipling pies had helped it grow its share of the mince pie market, he added.

Furthermore, after initial tests of the Mr Kipling brand in Target supermarkets in America, Premier said it was now looking at new opportunities to grow the long-standing brand across the Atlantic.

Despite its sales rising, the company was still facing “elevated” levels of inflation, it warned. It said it was trying to offset this with a combination of cost savings and price increases.