Fivemiletown Creamery has entered into exclusive talks with Glanbia, as it tries to save its business from closure.
The Northern Irish speciality cheesemaker – which has been making cheese for 130 years – said it was negotiating a possible “strategic alliance” with Glanbia Ingredients Ireland, which would see its milk supply – roughly 30 million litres from 60 farmers – go to Glanbia.
Under the deal, Glanbia would also receive exclusive licence to Fivemiletown’s retail cheese brands, but as the deal talks are with Glanbia’s ingredients rather than cheese division, it is not clear how likely it would be for Glanbia to continue making and marketing the cheeses.
A spokeperson for Glanbia Ingredients said “both parties see considerable value in establishing a long-term, mutually beneficial alliance”.
Even if the talks with Glanbia prove fruitful, cheesemaking at Fivemiletown itself is likely to end – the company said it would enter into consultations with its 50 staff “regarding the future” of its cheese facility in the event of a deal. If no deal is struck, the facility faces certain closure.
Fivemiletown decided to put its cheesemaking premises up for sale after hitting hard times over the past two years. In 2012, it restructured its business after losing a major supply contract with Kerry Foods, and the company said today it had also struggled to acquire milk in recent months. These developments had “significantly impacted on the financial viability of the business,” a spokesperson said.
Fivemiletown’s 39 shareholders are set to meet on Thursday to make a decision about the company’s future.
The Fivemiletown retail cheese portfolio includes Boilie – award-winning pearls of soft goats cheese (pictured).
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