C&C Group Plc
24 June 2005
24 June, 2005
C&C GROUP PLC
ANNOUNCES RE-ORGANISATION OF SNACKS DIVISION
Dublin, London, 24 June, 2005: C&C Group plc ('C&C'), the leading manufacturer,
marketer and distributor of branded beverages and snacks in Ireland, today
announced a re-organisation of its snacks division ('Tayto')
The snacks market in Ireland is a changing and highly competitive one which
currently displays little overall growth. To maintain competitiveness and its
market leadership position, Tayto is implementing a programme to reduce
operating costs and enhance efficiencies.
The programme includes the outsourcing of crisps manufacturing to Largo Foods
and the closure of the Tayto crisps factory in Coolock, Dublin; the integration
of snacks logistics with that of beverages; and the re-structuring of the snacks
sales organisation.
The decision to cease production at the Dublin crisps facility follows an
assessment of the level of investment required to sustain its competitiveness
and the available snacks manufacturing capacity on the island of Ireland. This
re-organisation will result in the closure of the company's Coolock plant in
October with a loss of 98 jobs. The remaining 166 jobs in Tayto are deployed
across several functions including new product development, sales, marketing and
quality control.
The re-organisation programme will give rise to an exceptional charge of
approximately €10 million in C&C's 2005/6 fiscal year. These exceptional costs
will be funded through the disposal of surplus manufacturing and distribution
properties. The programme will result in enhanced operating margins in the snack
division commencing in 2006/7.
In July 2003, Tayto successfully outsourced production from its Terenure snacks
plant to Largo Foods. The outsourcing of the remaining manufacturing
enablesTayto to increase its focus on developing and marketing products to cater
for the increasingly competitive and health conscious consumer snacks markets.
Tayto products will continue to be made in accordance with their own unique
recipes and use Irish potatoes sourced from Irish farmers. The specification
and monitoring of the entire manufacturing process will remain under the direct
control and supervision of Tayto's own Quality Control Team.
Maurice Pratt, C&C Group CEO, commented "C&C is committed to pursuing efficiency
improvements in each of its operating divisions. The difficult decision to close
the crisps facility follows a review of the required level of capital investment
at the facility, the availability of alternative manufacturing suppliers and an
increasingly competitive environment."
He concluded "We would like to record our appreciation for the commitment and
loyalty of the affected workforce over many years."
ENDS
Investors and analysts Irish Media International Media
Mark Kenny or Jonathan Neilan C&C Group queries: Edward Orlebar
K Capital Source Paddy Hughes Drury Communications Finsbury Group
Tel: +353-1- 631 5500 Tel: +353 1 260 5000 Tel: +44 20 7251 3801
Email :c&cgroup@kcapitalsource.com Email: phughes@drurycom.com Email:edward.orlebar@finsbury.com
Tayto Ireland queries:
Conor Dempsey
Slattery Communications
Tel : +353-1-661 4055
Email : conor.dempsey@scomms.ie
This information is provided by RNS
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