Glisten is planning to close a plant in Skegness and transfer production to factories in Leicester and the Czech Republic.
The confectionery and snacks business, which makes Poppets chocolates and Fox’s Glacier, has started to consult the 92 workers at the site.
The factory is operating close to full capacity and would need investment to meet future demand.
Glisten said that instead of expanding the Skegness factory, it made more sense to use spare capacity at its Leicester and Czech Republic plants.
“We have looked carefully at all the options, taking into account the cost and feasibility of developing the Skegness site and the fact that there is spare capacity and a strong talent pool of skilled workers at our other production facilities,” said Glisten MD Mark Adcock.
He said the business had benefited from some major own-label contract wins.
“The Skegness and Blackburn sites have grown steadily over the last two years as a result of winning some major own-label contracts as well as the development of our Fox’s and Poppets-branded business,” said Adcock.
Earlier this month, Glisten’s sister company Halo Foods began consultation on another plant closure in Tywyn, Wales. It said production would be transferred to Newport – where a new lease has been agreed and investment is earmarked to upgrade the facility.