Lever Brothers will stop producing soap at its Port Sunlight factory in the second half of next year, with the loss of 125 jobs. The Lux, Lifebuoy and Shield brands will now be produced outside the UK.
The factory will concentrate on more dynamic markets such as laundry tablets and ironing aids.
Bar soap's share of the personal washing category has plummeted as shower gel, moisturising mousse and liquid soap have taken over from bar soaps.
Lever Brothers said: "Yes consumers are moving towards convenience. But they're also trading up to innovative products with extra benefits, such as Dove soap with added moisturisers. This has shown nearly 60% year on year growth."
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