Citing falling demand for its Dolce Gusto coffee pod products, the Swiss food and beverage giant has confirmed it is proposing changes to its Tutbury plant in Hatton, a move that could result in job losses
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Proposed changes to the Tutbury Dolce Gusto plant in Hatton, UK, coudk result in the loss of 94 jobs | Photo credit: Nestlé
Nestlé is proposing to scale back production at its Tutbury Dolce Gusto coffee pod factory in Hatton, UK, a move which could result in the loss of 94 jobs.
A spokesperson for the Swiss food and beverage giant told the BBC that the move was in response to a “significant drop in demand” for Dolce Gusto products.
“We are proposing some changes at our Tutbury factory which would unfortunately mean a reduction in people,” Nestlé told reporters.
“Regrettably, it is necessary to propose a change in the factory structure to respond to this change in demand and ensure our manufacturing is as efficient as possible,” the spokesperson added.
Nestlé said that workers will be consulted before any changes are confirmed.
Nestlé first opened a dairy plant on the site of the Tutbury factory in 1901 and invested around £325m ($396m) between 2011 and 2016 transforming the facility into a specialised instant coffee and coffee pod production facility employing around 1,000 staff.
The Nescafé Dolce Gusto ‘coffee shop at home system’ was first introduced to the UK market in 2006.
Reporting its nine-month sales in October 2022, Nestlé cited a ‘difficult trading environment’ in Europe amid broadly positive global sales.
The food & beverage giant’s 2021 annual report showed that coffee products, including Nescafé, Starbucks, Nespresso, and Milo plant-based beverages, comprised 27.5% of group sales in 2021 ($25.7bn).