UP TO 55 jobs may be lost at Premier Foods Ireland as the company reorganises delivery of its branded cakes to supermarkets in the Republic.
Premier Foods is one of Ireland’s largest food companies with a turnover of approximately €150 million, employing about 100 staff. It distributes a range of well-known brands including Gateaux, Cadbury, Erin, Chivers and McDonnells, as well as breads and frozen foods.
Yesterday, management was in talks with staff on plans to end “cake van” deliveries to supermarkets, where some 55 staff are employed. A spokesman said the move was in response to a demand from the major retailers for a more centralised distribution service. He said many supermarkets in the Republic were now being supplied centrally from a base in the UK, and the company had been asked by its clients how it could best fit into a more centralised distribution network.
The spokesman maintained the move would not result in Irish-made products being replaced by UK products. He said these would be integrated into a more central supply line, possibly involving a third party. “The point is to make the distribution system in a very competitive market more effective,” he said. While discussions with staff were at an early stage, he said the firm had a good record of offering alternative employment where functions ceased. While some 55 van staff would be affected, it was too early to say how many jobs would be lost.
In 2007, the company announced 47 job losses in Premier Foods’ distribution operations at Blanchardstown, Coolock and Thurles. Some 59 jobs were lost with the closure of the Chivers jam factory at Coolock that same year. The reason given was distribution was being outsourced. Premier Foods is part of a worldwide conglomerate which last week announced branded sales up 6.5 per cent to €1,911 million and share gains across all markets.
