UK own-label firm Uniq will stop making yoghurt at its Minsterley site next year, blaming falling margins in the sector.

The company, which looks set to be acquired by Irish food group Greencore, said yoghurt production at Minsterley will end next April.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The decision was announced in a document that outlined Greencore’s GBP113m (US$182.5m) takeover bid for the company.

“Despite Uniq’s intention to build its capability and customer base for its premium, differentiated yoghurt at Minsterley, a further reduction in the margins achievable in this sector has lead Uniq to conclude that the returns it can realise from this category are insufficient to justify further investment in capital,” the statement said.

“Consequently, the Uniq directors have decided to withdraw from yoghurt in April 2012. This is likely to result in a number of employees being at risk of redundancy and a consultation process has commenced at the site. It is anticipated that following this restructuring, the loss of this business will not have a material impact of the financial position of the Minsterley site.”

A spokesperson for Uniq said that, with the company subject to a takeover bid, there was “no clarity” on the exact impact on jobs at the moment.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Minsterley site is one of Uniq’s two desserts plants. Last week, reflecting on Greencore’s bid for Uniq, Shore Capital analyst Darren Shirley said the Minsterley facility had “proved to be something of a problem child” for the company.

However, Shirley said he expects Greencore to continue with Uniq’s restructuring plans for Minsterley, which, could, he said take the business back into the black by the end of 2012.