Dairy Crest has launched a strategic review on the future of its Foodtec ingredients subsidiary, The Grocer can reveal.
The dairy processor told Foodtec’s 40 staff on Wednesday (19 March) it would conduct a review on the business over the next month.
Industry observers have interpreted the move as Dairy Crest looking to sell or close down the business, but the company stressed “all options” were under consideration. “We will provide an update once the review has been completed,” a spokeswoman added.
Dairy Crest declined to comment on the rationale for the review, but it is understood Foodtec has been struggling for some time.
Foodtec makes a range of ingredients for food manufacturers, and has a considerable presence in the free-from bakery market, as well as making its GelTec egg replacement product.
Dairy Crest used to own the company in a joint venture with Fayrefield before taking full control of the business in 2009.
One industry source suggested that if Dairy Crest were to put Foodtec up for sale, possible buyers could include Adams Foods’ ingredients division, First Milk and Meadow Foods.
