Kerry Foods Back on Track
The Kerry Group’s frozen food site in Carrickmacross, Ireland, is back on track after taking steps to streamline the business and slash its workforce.
The site, which produces Rye Valley Food ready meals for the UK food market, took a massive hit because of the depreciation of the pound. As a result it has reorganised shift patterns, cut promotional activity surrounding Rye Valley Foods, made various moves to maximise the efficiency of its supply chain, as well as reduce its workforce by around 10%. Approximately 500 people now work at the site.
"The operating cost base at the Carrickmacross site was reduced in line with business contraction to maintain profit margins," said a spokesman for the Kerry Group. "The massive deprecation of sterling has made exporting into the UK very challenging so we have had to take very prudent measures to overcome this – which have included curtailing permanent and seasonal employees – but are now satisfied with the current state of the site."
Reporting on business for the half-year ended June 30 2009, it said: "Kerry Foods has responded to the competitive industry landscape by repositioning its brands and aligning product offerings to the changing consumer environment. The division’s manufacturing base has also been significantly restructured with the closure of the Portadown and Glenealy plants and the streamlining of the Carrickmacross and Shillelagh production facilities."
Kerry’s cooked meats site in Glenealy, Ireland, is due to close by the end of September and a number of employees have moved to its Shillelagh site in County Wicklow. The group’s Portadown site in Northern Ireland, which produces pies, was closed in April this year.
Last week the Irish food company reported an increase in profits in the first half of this year. Pre-tax profits for the first six months of 2009 were almost euro 137M, up from euro 132M in the first half of last year.
Kerry Group chief executive Stan McCarthy said: "Kerry technologies and brands performed well in the difficult economic environment throughout global markets in the first half of 2009. Good progress was made in aligning product development, innovation, marketing and promotional strategies to the changing marketplace."
Source: www.foodmanufacture.co.uk - 1st September 2009
