It’s the same old story of Premier Foods – which co-owns the bakery – retiring surplus capacity from the British bread market to the benefit of its competitors, such as Allied Bakeries and Warburtons, the source told Food Manufacture.co.uk.
“It looks like the same old theory” the industry insider noted. “Close capacity to reflect lost volume. Then, watch market decline and share loss. Result: Hovis pays, while Allied Bakeries and Warburtons get a free ride.”
‘Allied Bakeries and Warburtons get a free ride’
Premier Foods’s announced on Wednesday (July 24) the bakery was to close by the end of next January with the loss of 204 jobs
A spokeswoman told FoodManufacture.co.uk: “The proposal is part of the simplification and transformation of the company’s bread manufacturing operations which aims to improve efficiency, quality and customer service.”
Hovis bread will continue to be produced in the firm’s nine other UK bakeries, she added. A consultation period with 204 employees affected by the planned closure at the Thurmaston site has already begun.
Hovis Limited is a joint venture co-owned by Premier Foods and the US-based Gores Group.