Kendal Nutricare acquires Premier Foods’ facility

UK – Kendal Nutricare, a UK-based infant-formula manufacturer, has acquired a facility from Premier Foods, marking a significant investment in the region’s food production sector.

According to a report by Stafford Borough Council, the purchase of the Knighton factory in Staffordshire was facilitated through Kendal Nutricare’s subsidiary, Excelsior Foods.

While financial details of the deal remain undisclosed, the acquisition signals a new chapter for the site, which had faced closure.

Premier Foods, the owner of popular brands like Mr. Kipling cakes and Ambrosia custard, announced in January 2023 its intention to shut down the Knighton Foods factory.

The company noted that the facility, which produced powdered desserts and drinks, was “marginally unprofitable at trading profit” and no longer aligned with its branded growth model strategy. The closure plan had put around 300 jobs at risk.

The new ownership, however, brings hope to the local community. Kendal Nutricare has committed to a “multi-million pound investment” in the facility, aiming to transform it into a hub for dietary and nutritional products.

According to the council’s statement, the investment is expected to create around 100 jobs over the next two years.

Recruitment has already begun for various roles, including laboratory assistants, production supervisors, and HR and IT support staff.

Ross McMahon, CEO of Kendal Nutricare, emphasized the company’s dedication to British manufacturing and the local dairy industry.

He remarked, “The purchase of this site shows our continued commitment to domestic manufacturing and supporting the world-class British dairy industry.”

“Like the Kendal site, which we took ownership of in 2015, the Stafford site has a rich history in food and drink production. It would have been a great shame to lose this site from the Staffordshire area and rural community.”

Siobhan Fotheringham, Kendal Nutricare’s international business director, highlighted the strategic importance of the location.

She noted that Staffordshire’s proximity to the dairy industry and expertise in spray-drying milk powders made it an ideal choice.

“The council’s willingness to work with us to bring good employment opportunities back to the area was also a key factor,” Fotheringham added.

Kendal Nutricare, headquartered in the Lake District, produces well-known infant-formula brands Kendamil and Bonya.

The company’s latest financial report revealed substantial growth, with turnover rising to £94.9 million for the year ending March 31, 2023, up from £34.1 million the previous year.

Operating profit also saw a significant increase, reaching £39.6 million, compared to £6.7 million in 2022.