Reporting 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