85 jobs on line as Kirkcaldy business set to relocate over 400 miles away
A long-established food production company in Kirkcaldy is facing an uncertain future with plans to move its entire operations to Wales, affecting up to 85 jobs.
Workers at Innovate Foods have been given letters outlining a proposal to move from its base in Boreland Road to Abergavenny Fine Foods in south Wales, over 400 miles away. Both companies are owned by the German headquartered, Frostkrone Food Group.
Letters marked ‘private and confidential’ handed to staff confirmed the review was underway and a consultation would take place before any final decision was made. Should the proposal go ahead, manufacturing operations would be transferred on a phased basis through to 2027.
A number of staff have been with the company for 30 years, moving with it when it relocated from Glenrothes into Kirkcaldy, and it remains ‘business as usual’ as the consultation gets underway.
There will be opportunities to transfer to Abergevanny where there is greater scope to add a new production line, while the Kirkcaldy operation is looking to continue for the rest of the year, with the changes coming in the first half of 2027.
Innovate Food provides in excess of 30 million portions annually across the world, and suppliers include major names such as Papa Johns restaurants and Iceland.
The company has a history dating back to the 1930s when the grandfather of co-founder, Tony Dumbreck, started to grow mushrooms.
In 1989 he launched Golden Crumb Produce with one million mushrooms coated every week, and the business rebranded as Innovate Foods in 2006. By 2017 it was producing in excess of 14 million portions annually across the globe, and in 2020 it joined the Frostkrone Food Group which also acquired Abergavenny Fine Foods - and now plans to run the two businesses from one base in Wales.
Its letter to staff in Kirkcaldy said: “We recognise this news will be concerning and may create uncertainty for you and your family. This letter confirms the proposal and the process that will follow.
“Following a strategic review by the Frostkrone Food Group Board, we are proposing to relocate manufacturing currently undertaken at Innovate Foods to Abergavenny Fine Foods.
As part of this proposal, the Innovate Foods site is being reviewed. Approximately 85 employees are included within this consultation process. No final decision has been made. The company is now commencing a formal consultation before any decision is reached.”
The board said the Fife operation “has made a significant contribution to the business, and has consistently delivered strong operational performance.”
But it added: “The site is facing increasing operational challenges due to the age of its infrastructure and equipment.
“Despite ongoing investment over many years, the capital expenditure required to modernise the facility is substantial,and is no longer considered financially viable in the current market environment. Changing market conditions and commercial pressures also meant that operating multiple manufacturing facilities in the UK is becoming increasingly difficult to sustain over the long term.
“The proposal under consideration would consolidate production with Abergavenny Fine Foods which has the infrastructure, capability and capacity to support future operational requirements.
“The FFG board has therefor concluded that it is appropriate to consult on this process as a potential means of creating a more efficient and financially sustainable manufacturing structure.”
In a statement, Brian Bogaerts, managing director of Frostkrone UK, said the review reflects the increasing investment required to modernise the Innovate Foods site.
He continued: “Despite significant ongoing investment and maintenance over many years, the site's ageing infrastructure, layout and production equipment now require substantial capital expenditure. In the current market environment, this level of investment is no longer considered financially viable.
“Against this backdrop, the company is consulting on a proposal to optimise its UK manufacturing footprint by consolidating production capacity within a more efficient and financially sustainable operating structure, helping to strengthen the long-term competitiveness of the business.
As part of the consultation, Frostkrone UK is examining a proposal to relocate the manufacturing and support activities currently undertaken at Innovate Foods into Abergavenny Fine Foods. The future of the Innovate Foods site also forms part of the proposal.
“No final decision has been made, and the company is committed to conducting full and meaningful consultation with employees and their representatives before any decision is reached.” Mr Bogaerts said all workers at the Lang Toun facility had been informed both verbally and in writing. And will now participate in the formal consultation process during which they will have the opportunity to ask questions, raise concerns and put forward alternative proposals, “all of which will be carefully considered.”
He: “Throughout the consultation period, site management and the HR team will remain available to provide information and support.”
He also outlined the timescale for the road ahead if the consolidation proposal is accepted and everything moves to South Wales.
“Should the proposal proceed following consultation, manufacturing operations would be transferred to Abergavenny Fine Foods on a phased basis through to 2027,” it said.
“All affected employees would be offered the opportunity to transfer to Abergavenny Fine Foods.”
It added: “We recognise the impact this announcement may have on our employees, their families and the wider community. We have put in place the necessary measures to support our colleagues throughout the consultation process and remain committed to treating everyone with fairness, dignity and respect," said
> A long-term investment decision
The company said the proposal reflected the need to ensure that Frostkrone UK's manufacturing operations remain competitive and sustainable for the future.
The statement added: “Abergavenny Fine Foods is a modern manufacturing facility with the infrastructure, capability and capacity to accommodate additional production volumes while maintaining high standards of quality, compliance, food safety and operational efficiency. Consolidating manufacturing activities at the site would provide a stronger operational platform for the future while enabling the business to respond more effectively to changing market conditions.
"The group remains fully committed to the UK market and continues to invest in building a sustainable, competitive and resilient business for the future.
“While the consultation process is ongoing, Frostkrone UK remains focused on maintaining open and transparent communication with employees. As the consultation is still underway, it would not be appropriate to comment further until the process has concluded.”