Müller Milk and Ingredients is considering the future of a food service delivery operation supplying fresh milk and other products to 3,000 business customers south of the border.
The company has confirmed a 45-day review and consultation period, placing 250 staff under the threat of redundancy.
The at-risk business was acquired two years ago when Müller bought the dairy assets of Dairy Crest. It represents less than 2% of Müller’s turnover, but is suffering losses of around £5m annually.
Andrew McInnes, Managing Director at Müller Milk & Ingredients said: “Whilst the Müller Milk & Ingredients food service operation is a very small part of our overall business, it is vital that it is profitable and viable. It is clearly unsustainable in its current format.
“We would therefore like to take this time to assess the role and fit of this part of our business within our wider strategy for the future, and determine whether there are better and more sustainable ways to supply the needs of our smaller food service customers.”
A household and educational business managed by sister company Milk & More is not affected by the review.
