Cereal Partners Worldwide, a leading global cereal joint venture between Nestlé and General Mills, is currently undergoing an “industrial review” of its French facility.
According to a statement from Cereal Partners France, the venture is “exploring various options” for the Itancourt site located in northern France.
The objective of this review is to identify strategies to “better address competitiveness challenges” faced within the breakfast cereals market in France and across Europe.
Cereal Partners France emphasized that “all options will be considered,” which includes seeking an industrial partner or a potential buyer for the Itancourt site.
The company observed a “structural decline” in the breakfast cereals category since the late 2010s. Furthermore, consumers have “abandoned” what the company calls the “wellness” segment in favor of muesli and granola products.
Notably, approximately 85% of the factory’s production is exported outside of France, with significant shipments to various European nations, including the UK, Portugal, Spain, Germany, Italy, and Greece. The Itancourt site manufactures products under brands such as Fitness, Chokella, and Crunch.
Without citing specific data sources, Cereal Partners France indicated that “wellness” cereals comprised 19% of Europe’s breakfast cereals market in 2016. By 2023, that percentage fell to 11%.
The company indicated that the challenging market conditions led to a steady decline in production volumes at the Itancourt plant since 2009. Currently, the facility manufactures just 24,000 tons of cereals, which is significantly below its maximum capacity of 70,000 tons, equating to only 40% operational efficiency.
The review process is set to conclude by the end of March, at which point the company plans to present its findings to employees. The Itancourt facility currently employs around 250 individuals.
Cereal Partners France, which operates a second factory in Rumilly, expressed a commitment to finding the “most suitable option for the site and its stakeholders” while striving to “optimise” its production capabilities within the country.
Nestlé and General Mills established Cereal Partners Worldwide in 1990. According to the business’s website, it currently operates 15 factories and employs approximately 4,000 personnel.
