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.

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