'Unsustainable': Muller places milk service delivery operation under review

250 roles are at risk of redundancy
250 roles are at risk of redundancy

A food service delivery operation supplying fresh milk to 3,000 non-residential customers in England and Wales, which is suffering losses of around £5m per annum, is to be reviewed by Muller.

The company has confirmed a 45 day review and consultation, placing 250 roles at risk of redundancy.

The dairy giant states that it wants to use the time to assess whether existing food service customers, which include workplaces, restaurants, pubs, bakeries and contract caterers, can be better serviced in other ways by Muller or by alternative providers.

Andrew McInnes, Managing Director at Müller Milk & Ingredients said the business is "clearly unsustainable" in its current format.

“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,” Mr McInnes said.

“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.”

Müller has stressed that it will work to fully evaluate and understand the most appropriate course of action for its employees, customers and the food service business. The outcome of the review will not be determined until this work is completed.

The food service delivery operation was acquired two years ago as part of the Dairy Crest dairies business, and represents less than 2% of the company’s turnover.