Manufacturers

KP Snacks and Intersnack in £16M nut consolidation

02-Dec-2013
Last updated on 02-Dec-2013 at 13:15 GMT - By Rod Addy+
KP Snacks makes a range of snack products for on-trade and off-trade markets
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KP Snacks and parent company Intersnack UK aim to invest £16M in closing their Haverhill factory in Suffolk and consolidating nut processing and packing operations in Rotherham, Yorkshire.

The businesses propose to shift 144 people working at existing Rotherham nut facilities to a newly created plant nearby, while creating an additional 80 jobs there over four years.

They are currently in the midst of integration after Intersnack bought KP Snacks from United Biscuits in December last year.

A spokeswoman for the business told FoodManufacture.co.uk: “The integration of KP Snacks and Intersnack UK is well underway, and from next year both companies will begin to operate as one under the name KP Snacks (part of the Intersnack Group).

“Alongside our integration process we are also carrying out a review of our manufacturing strategy, which yesterday’s announcement related to.”

When asked if further investment was planned, she added that there were “exciting plans as part of our manufacturing strategy, which we will announce in due course”.

The companies said they had “ambitious and exciting plans to grow our nut business”. But they claimed that to do so sustainably and remain competitive, they needed to revamp their facilities and make them “fit for purpose”.

Too much capacity

A detailed review of their current nut operations had revealed too much capacity and that the fixed costs of operating two sites was hindering the ability to remain competitive, they said.

“The combined executive team is therefore proposing to make the investment to build the new facility in Rotherham, which it is proposed will produce all of our nuts volume in the future. 

“We appreciate the focus on quality and the commitment of our Haverhill colleagues and we will work closely with them as we consult on these proposals in the coming weeks.”

They stressed they intended to engage in full consultation with workers at Haverhill, one of Intersnack’s factories and that no final decisions had yet been made.

The site has 85 permanent employees, but the company said it would offer them all the opportunity to relocate to other available roles.

‘Significant investment’

“This significant investment demonstrates Intersnack’s commitment to strengthening our nut business in the UK,” said Mark Thorpe, md, operations, for KP Snacks and Intersnack UK.

“Although restructurings such as these are always difficult, we firmly believe this proposal is the most cost-effective way for us to modernise and ‘future proof’ our nut processing capability.” 

KP Snacks was bought by Intersnack from United Biscuits in December last year and makes a range of snacks for on-trade and off-trade markets.

Intersnack was founded in 1968 and is a subsidiary of Netherlands-based Intersnack International. Its best-known brands are Pom Bear crisps and Penn State pretzels. 

Together, KP Snacks and Intersnack operate seven production facilities, at Teesside, Tanfield, Ashby, Consett, Corby, Haverhill and Rotherham, and have a head office in Hayes, Middlesex.

Related topics: Manufacturers, KP Snacks, Snacks