Little Moons is set to dramatically scale back its operations, impacting jobs and production plans.
- The mochi ice cream producer had previously expanded with a new factory in Kettering, closing two London sites.
- Significant growth in its turnover to £68.5m had driven the initial expansion.
- The reversal involves consolidating operations back to the former London locations.
- Employees face potential job losses amid ongoing formal consultations.
Little Moons is undergoing a significant operational shift, marked by potential job losses and a retreat from its recent expansion strategy. The mochi ice cream brand had earlier positioned itself for growth by opening a 50,000 square foot factory in Kettering. This development was seen as a crucial move, enabling the company to scale its production capabilities further. It followed the closure of two existing production sites in London, aiming to centralise operations and boost efficiency.
The expansion plans were initially justified by a substantial increase in turnover, which soared to £68.5 million from a previous £25.5 million, recorded over an 18-month period ending December 2022. Strong sales growth across markets in the UK, France, Germany, and Australia contributed to this impressive financial performance. However, recent developments indicate a strategic realignment, with Little Moons deciding to shift its manufacturing base back to the original London sites.
A spokesperson attributed this strategic reversal to a rigorous evaluation of operational efficiency, necessary for ensuring a stable and profitable future for the business. They stated, “Little Moons led a robust assessment of its business to ensure operational efficiency.” This analysis has prompted the contemplation of structural changes, such as the possible closure of the Kettering factory.
Employees have been informed about the impending changes and the fact that these adjustments might lead to job redundancies. The company has committed to mitigating the risk of redundancies by offering alternative roles to affected staff members where possible. During this period of change, Little Moons remains hopeful about its growth prospects.
In March, the company announced the appointment of Joanna Allen, former CEO of snack brand Graze, as its new chief executive. Her leadership was anticipated as a turning point for the brand. This new appointment underscores the ongoing efforts by Little Moons to adapt and align its operational goals with its market ambitions.
The unfolding strategic adjustments at Little Moons are set to redefine its operational landscape, affecting both its workforce and production facilities.
