Premier Foods has announced it has opened talks with its staff which could see about half its Irish workforce being made redundant.
Up to 55 of some 100 jobs may be lost as the company reorganises delivery of its branded cakes to supermarkets across the Republic.
Premier Foods is one of Ireland’s largest food companies with a turnover of approximately €150m. It distributes a range of well known brands including Gateaux, Cadbury, Erin, Chivers and McDonnells, as well as breads and frozen foods.
This afternoon the company confirmed talks aimed at ending “cake van” deliveries to supermarkets,. Some 55 staff are employed on the Cake vans and the company said it was hoping to redeploy as many as possible. 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 products made in the UK. 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, the spokesman said the company had a good record of offering alternative employment to staff where functions ceased. It was too early to say how many jobs would be lost, he added.
In 2007 the company announced 47 job losses in Premier Foods' distribution operations at Blanchardstown, Coolock and Thurles. Some further 59 jobs were lost with the closure of the Chivers jam factory at Coolock in the same year. The reason given was that distribution was being outsourced to a logistics company based in Ashbourne, Co Meath.
Premier Foods in Ireland is part of a world-wide conglomerate which last week announced branded sales up 6.5 percent to ¤1,911m and market share gains across all markets. Total sales were up 2.2 percent to ¤3,032m
