Job fears as Ryvita announces merger

7:00pm Monday 2nd June 2008

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Shocked staff at the Ryvita factory in Poole have learnt the company could lose up to 50 head office staff after a merger with Jordans breakfast cereal business.

The crispbread-producing factory, which employs 160, will remain at Old Wareham Road but the head office will move to Jordans' base at Biggleswade in Bedfordshire.

Employees at Old Wareham Road learnt the news on Monday, June 2, after parent company Associated British Foods plc (ABF) announced the merger.

A male member of staff, who didn't want to be named, said: "It is a worrying time at the moment, especially when you consider the state of the country as a whole - I mean, we're not exactly in boom times, are we?

"There are a lot of shocked people at work today, but we will just have to wait and see what the future brings."

Ryvita marketing manager Nigel Nelms said: "It is purely head office staff that are affected by this merger."

A six-week consultation period has begun and administration staff will have the opportunity to move to Bedfordshire or accept redundancy.

"We have a lot of very good people here and we would be glad if the majority of them were to move with us," said Mr Nelms.

Merging the two businesses is anticipated to take place next spring. The Ryvita name will live on, with the business likely to be called the Jordans and Ryvita Company.

"The majority of what people typically associate with Ryvita, crispbread and minis, are made down here in Poole," said Mr Nelms. "We have just put in a new production line to make a crispbread product which was launched recently. We are investing in the factory not stripping it out."

Ryvita has an 80-year heritage with the Poole factory opening after the war, with the town selected for production because of its port.

Products made at Poole and Stockport are exported to over 30 countries around the world and Jordans, which has 350 employees, exports its breakfast cereals and cereal bars to 17 countries.

"We are very excited about the prospect of combining the two businesses and the opportunities this provides us with to further develop a market which is expanding because of the consumers' desire for natural ingredients and healthy eating," said Mr Nelms in a statement.

ABF, the international food, ingredients and retail group, whose holdings include Primark, will have a 62 per cent interest in the combined business.