PoleStar Foods boss switches focus to exports after disagreements with Board over ‘strategy and structure’
Ex-chief executive Keith Ellis told FoodManufacture.co.uk that his consultancy firm EIA Ltd (Ellis International Associates) was now working to identify and develop export sales opportunities for PoleStar, which operates from sites in Okehampton in Devon and Leamington Spa in Warwickshire.
PoleStar, which supplies leading supermarkets with own-label desserts but also produces selected Heinz branded products under licence, was formed last December following the sale of Heinz’s UK own-label frozen desserts business.
Ellis added: “I stepped down as chief executive following disagreements over structure and strategy with the chairman [John Gibson, who is now running the business] and the board, but I am still the biggest shareholder [with a 30% stake in the business].
New shift pattern
Commercial director Sue Garfitt declined to comment on the nature of the disagreement with Ellis, but confirmed that PoleStar was making 45 staff redundant at the Leamington Spa site as it switches from a two-shift system to a one-shift system in January.
The changes were part of an ongoing "realignment" to better match labour scheduling with sales that had been taking place since the takeover last December, and did not reflect the loss of any major contract, she stressed.
"We inherited a structure that was not fit for purpose. But on the customer side, we have been working with all of the major supermarkets on new Christmas launches.
"We've got some new lines for M&S and the Co-operative, a new line for Iceland, some new business with Asda and some relaunched products for Sainsbury's in the Taste the Difference range.
"Frozen is not a backwater, and it's an area that does very well when consumers tighten their belts."
Restructuring
There had been two rounds of redundancies since the acquisition last December, said Garfitt.
"It has been regrettable but absolutely necessary in order to make the business fit for purpose and sustainable for the future. The unions at both sites [Okehampton and Leamington Spa] have been fully engaged throughout the consultation process.
"Total redundancies during 2010 will be 193 including the move to single shift in Leamington from January 2011."
