Swiss food concern Nestlé will cease to produce meals containing meat in its Beauvais factory, near Paris. The production of Maggi-branded meals is being halted after demand collapsed due to “horsegate”.
Ice cream department benefiting
Despite a slight sales recovery, the market is still down 25 % compared to last year since it has become apparent that meals in several European countries contained cheap horse meat instead of pricier beef. This malpractice was mainly found in the frozen meal sector, including Nestlé subsidiary Davigel.
Closing the Beauvais factory by the end of the first trimester of 2014 means165 people will lose their job according to French specialised website LSA, but some will be eligible for retirement while others will be transferred to another business unit at the same location. That will be the ice cream department, which will be extensively expanded.
The Beauvais factory produced some 60,000 tons per year at its height, some 20 years ago. It barely managed those numbers nowadays, barely reaching 4,600 tons.
(Translated by Gary Peeters)