Premier revealed on Tuesday (13 November) that it was in talks to dispose of the custard brand as part of a new growth strategy.
Unite said it was concerned there had been a lack of consultation with the workforce at the Lifton site prior to the announcement and that there was no time limit given for seeking a buyer.
The union called for assurances that if a buyer was found, proper due diligence would be undertaken and the factory would only be sold to a company committed to its long-term future. This also included assurances surrounding jobs if the factory was sold.
Unite regional officer Mark Richards said: “Premier Foods’ announcement has placed our members in limbo, they don’t know if the factory will be sold and whether they will even have a job in the future.
‘Reduce the genuine anxiety’
“It is imperative that Premier Foods provides clear answers to begin to reduce the genuine anxiety being experienced by our members. Workers also need answers on whether there will be a time limit on finding a buyer, so they can at least know when their future will be decided.”
The decision to sell the Ambrosia brand was part of Premier’s new strategy to focus on the areas of the business that have the “best potential”. The manufacturer said it was in talks with third parties to discuss a potential disposal of the business.
In response to Unite’s queries, a Premier Foods spokesman said that while the process to find a buyer was at an early stage, there was no guarantee it would result in a sale. However, it did believe other owners might be in a better position to invest and grow the business further.
"The business will only be sold if we can find a suitable buyer, willing to pay the right price, for this 100-year-old family favourite,” said the spokesman.
‘Business as usual’
“We appreciate this is an unsettling time for colleagues and will keep everyone at the Lifton site informed of any developments, if and when they happen, but, in the meantime, it is business as usual at Lifton.”
Fiona Cincotta, senior market analyst at City Index, said Ambrosia might not be the only Premier brand up for grabs.
“Assets other than Ambrosia could be destined for the chopping block, now that Premier Foods appears to have caved to the demands of activist investors,” said Cincotta. “Among them could be Batchelors, which key investor Oasis has already singled out as a possible sale candidate.”
Meanwhile, Premier Foods chief executive Gavin Darby has announced he is to step down from the role at the end of January 2019.