Nestlé SA plans to stop producing broths, soups and sauces at its Hauts-de-France plant in northern France due to declining volumes, food industry news site Just Food reported Jan. 21, citing a company spokesperson.
The food and beverage company said producing the food items is no longer economically viable as a downturn in the local grocery sector has led to a drop in volumes in "recent years," according to the report. The site is also no longer competitive compared to other Nestlé manufacturing plants in Europe, Just Food added.
The move will reportedly affect 158 employees.
However, Nestlé will keep producing products under the Maggi brand at the factory. It will also continue manufacturing cereals for Cereal Partners Worldwide SA, its joint venture with General Mills Inc., at an adjacent site, the report said.
Meanwhile, Nestlé is still looking to invest €100 million in its baby milk facility in Boué, also in Hauts-de-France, over the next three years, Just Food reported.
Nestlé did not immediately respond to S&P Global Market Intelligence's request for comment.