The company has launched a 45-day review and consultation for the delivery business, which supplies fresh milk and other products to 3,000 non-residential customers in England and Wales. The business has been suffering losses of about £5m a year.
Müller said it wanted to use the time to assess whether existing foodservice customers could be better served by its other businesses or by alternative providers.
‘Clearly unsustainable’
Andrew McInnes, managing director at Müller Milk & Ingredients, said: “While the Müller Milk & Ingredients food service operation is a very small part of our overall business, it is vital that it is profitable and viable. It is clearly unsustainable in its current format.
“We would therefore like to take this time to assess the role and fit of this part of our business within our wider strategy for the future, and determine whether there are better and more sustainable ways to supply the needs of our smaller foodservice customers.”
The foodservice delivery operation was acquired two years ago as part of the Dairy Crest dairies business, and represents less than 2% of the company’s turnover, according to Müller.
Outcome of the review
The company pledged it would work to fully evaluate and understand the most appropriate course of action for its employees, customers and the foodservice business. The outcome of the review would not be determined until it was completed, it said.
Müller added that its household and educational business, managed by sister company Milk & More, would not be affected by the review and consultation.
Meanwhile, pork processor Tulip has proposed to axe 170 jobs at its Bodmin facility in Cornwall.
The business has entered into a “period of collective consultation” with employees and representatives at the site. It claimed the moves were a “result of a significant fall in production volumes at the site, due to loss of business”.