Cereal Partners Worldwide (CPW), a global joint venture between Nestlé and General Mills, has launched an industrial review of its Itancourt plant in northern France. The facility, which employs around 250 people, produces Fitness, Chokella and Crunch brand cereals, exporting 85% of its production to European countries such as Italy, Germany, the United Kingdom and Spain. The review, scheduled to run until March 2024, aims to identify the best solution for the plant and its stakeholders, with the possibility of finding an industrial partner or divesting the plant.
Nestlé, a global leader in the food industry, and General Mills created CPW in 1990 to compete in the breakfast cereal market. The company produces more than 50 brands sold in more than 130 countries, leveraging innovation and widespread presence. However, the structural decline of the category, particularly in the “wellness” segment (health products), has forced a review of strategies. In Europe, the share of “wellness” cereals has fallen from 19% in 2016 to 11% in 2023, forcing CPW to rethink its operations.
The Itancourt plant, which has been in operation since 1984, has been particularly affected by declining production volumes, which have fallen to 24.000 tonnes per year from a maximum capacity of 70.000 tonnes. It is currently operating at 40% capacity. The plant joins another plant in Rumilly, in the south of France, which contributes to CPW’s manufacturing operations in the country.
Cereal Partners France intends to optimize operations to meet the competitive challenges in the European market. The company attributes the decline in demand to changes in consumer preferences, which are increasingly favoring muesli and granola. The ongoing review will explore all options to ensure the sustainability of the site and support for the staff involved.
