Chilled foods group Uniq is exiting its everyday desserts business following a strategic review.
Despite identifying "significant" potential savings in the cost-sensitive category earlier this year, Uniq said today it would focus on its growing premium dessert and Muller/Cadbury desserts business.
Uniq overhauled the loss-making everyday desserts division last year, investing significantly in the range.
But performance was hit by the rising cost of key raw materials, such as cream, while sales slumped 5.9% in the first 21 weeks of the year.
Certain selected premium desserts lines will switch from Uniq's Minsterley site – where production will cease – to its Evercreech site in the first half of 2012, with the loss of about 350 jobs.
The company will take a £36m hit from lost everyday desserts sales plus £10m in restructuring costs, including capital investment.
Minsterley will retain 100 staff focused on the Muller/Cadbury chocolate desserts business after the company withdrew from the premium yoghurt and cottage cheese markets earlier this year.
Hot Topic: Uniq was the obvious 'next cab on the rank' (16 July 2011)
Uniq deal helps Greencore get over Northern (12 July 2011)
Eaton mess: Uniq's boss meets The Grocer (2 July 2011)