‘Bitter’ Britvic blow as firm plans to leave historic UK base cutting 230 jobs

Unite said its officers in Yorkshire and Northern Ireland hoped to hold similar talks with Britvic management – the firm makes Pepsi, Tango, Fruit Shoot, Robinsons brands – in the near future.

The union’s national officer for food and drink, Jennie Formby, said: “The threat to the jobs at the three sites is a very bitter blow for the workers and their families. We want to analyse the company’s statement fully and consult with our members.”​

Strong future as a standalone​

Glossing a “number of major initiatives” ​Panmure Gordon analyst Damien McNeela said they “make the case for the company as a standalone business and target cost savings of £30m by 2016, which compares with the £40m of synergies under the proposed merger with AG Barr.​

“This provides the clearest indication that Britvic sees a strong future as a standalone entity,”​ McNeela added.

Analysts say that Britvic is strengthening its hand in case the UK Competition Commission (CC) rejects its proposed merger with AG Barr – to create an EU drinks firm – announced in November, or to force its rival to agree to a better deal if the CC clears it. A CC ruling is expected in July.

Britvic, under new CEO Simon Litherland, said yesterday that it wanted to close the Chelmsford site in 2014 as rolls out a plan to merge its UK and Ireland operations, which could mean a total of 300-400 job losses.

‘Very profitable company’: Unite​

The plan involves cuts totalling £30m over the next three years, as pre-tax profits for the 29 weeks to mid-April hit £37.5m, up 50%, although sales fell 0.3% to £639.2m.

Britvic also plans to close its Pennine Spring water factory in Huddersfield with 40 job losses, and a warehouse in Belfast employing 20 staff.

“It should be remembered that this is a very profitable company and could well afford to keep all these existing operations going,”​ Formby said.

“Unite will be doing all it can in the coming weeks to support our members through this difficult period.”​

Britvic built the Chelmsford site in 1954 – the company was founded in the city in the 19^th​ century – and it manufactures soft drinks in cans, glass and plastic bottles there.