Britvic continues ‘streamlining’ through savings and closures

britvicReporting  growth in sales and profits today, Britain’s biggest branded soft drinks manufacturer Britvic said its restructuring and cost saving programmes were firmly underway and that it would “fully support all employees impacted by change”.

The beverages giant, which said it had now recovered from the 2012 recall of its Fruit Shoot brand in July last year and had also concluded a 15-year manufacturing and distribution deal with PepsiCo that would see Fruit Shoot distributed across 41 US states during 2014, said its strategy required a new streamlined organisational structure.

Britvic is seeking £30m a year cost savings by 2016, which means it will “increase operational leverage through fewer manufacturing sites”.  It had achieved a 7% reduction in the number of production lines and will end production at its Huddersfield and Chelmsford factories by March next year.

CEO Simon Litherland said the company would: “continue to fully support all employees impacted by change, including those in the Supply Chain who will leave the business between February and May 2014, or relocate between sites following the closure of Chelmsford & Huddersfield.

Britvic reported to shareholders that revenue for the year had grown 4.4% to £1.3 billion, earnings were up 18.4% to £138 million with shareholder returns up 27.5% to 35.2p and the share dividend increased by 4.0% to 18.4p

Copyright Ken Hurst 2013

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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