Coup welcomed by its victim
Jan 12 2008 by Iain Laing, The Journal
MANAGERS at a well known Tyneside biscuit company will be sacked after its takeover by a larger rival.
Burton’s Foods said it would remove the chairman and the chief executive of Northumbrian Fine Foods, of Gateshead, and review its management structure after buying the 72-year-old firm.
But the rest of the 200 staff at the Team Valley business will get some comfort as NFF’s new owner said it did not plan any immediate changes to the workforce.
A Burton’s spokeswoman said: “The chairman and CEO will depart from NFF as part of the acquisition. Whilst Burton’s does not envisage any significant short term changes, an immediate review of the management structure will be undertaken to assess how best to integrate NFF with the wider Burton’s operation. This may lead to some restructuring at management levels.”
Burton’s, which is owned by private equity company Duke Street Capital and most famous for making Wagon Wheels biscuits, said it intended to capitalise on NFF’s production of biscuits.
It said it was not only impressed by what it terms “indulgence” biscuits, but those made under licence and aimed at customers interested in a healthier product, under brands such as Traidcraft Geobars, Ainsley Harriott and You Are What You Eat.
A spokesman said: “The Burton’s strategic plan is to invest in healthier and premium indulgence ranges. Our recent manufacturing review identified the need to develop capability in this area. Northumbrian Fine Foods cereal bar products and capabilities represent a perfect strategic fit for Burton’s.
“Northumbrian Fine Foods enjoys licences with excellent companies such as Traidcraft and we hope that the licensing partners will see real benefits in the Burton’s partnership. These are complementary to Burton’s existing licensing partnerships.”
“The acquisition strengthens Burton’s capability and presence in the growing health and indulgence segments of the biscuits market.”
Burton’s Foods CEO Paul Kitchener said: “Northumbrian Fine Foods has a strong range of brands and outstanding capability which complements our portfolio and it will enable us to exploit opportunities on a number of brands and increase our presence in the growing high value segments, further enhancing our position as the UK’s fastest-growing major biscuits player.
“Through this acquisition Northumbrian Fine Foods will gain Burton’s Foods market-leading expertise, consumer and category insight as well as longer term investment opportunities. Over the coming months, a review will take place to ensure a smooth passage of integration for the whole business into Burton’s Foods Limited.”
NFF chairman David Jones said: “This is an exciting time for our business. By joining with Burton’s Foods we will be able to grow and develop our brands, utilising their insight and expertise.”
Burton’s, which also makes Jammie Dodgers and Maryland Cookies, is the UK’s second-largest biscuit maker, but has been looking to expand since its acquisition by Duke Street Capital last March. It bought NFF for an undisclosed fee.
Burton’s Foods formed after the combination of the Horizon Biscuit Company Ltd and Burton’s Gold Medal Biscuits Ltd in October 2000. It currently has four UK bakeries, in Edinburgh, Blackpool, Moreton in the Wirral and Llantarnam, a distribution centre in Knowsley on Merseyside and a head office at St Albans in Hertfordshire.
