Dairy giant FrieslandCampina has announced that it is exploring the possibility of shutting down its mozzarella production unit in Bree, Belgium.
The management feels that the unit has not lived up to the company’s profitability expectations and does not consider the continuation of production in the unit to be ‘sensible’.
The president of FrieslandCampina Dairy Essentials, Hans Meeuwis, said, “We have looked at solutions. Unfortunately, they did not lead to a positive outcome. Based on this, we decided to investigate the closure of the production site.”
The Impact
The decision will affect around 28 employees, the company said.
Meeuwis commented, “We understand that this is hard for the employees and the management involved, and we will offer them appropriate support.”
He further said that adding more value to basic dairy – cheese, milk powder, and butter – is an important part of the company’s strategy, and mozzarella will continue to be an important part of its cheese assortment.
In August of this year, the company posted a revenue decline of 5.8% in the first half of its financial year, to €5.72 billion.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
