With rising inflation and strong pan-European competition in the frozen pizza category, the market is unfortunately no longer at the level we hoped for, and order forecasts have been much lower than expected. On 2 March, we therefore announced the temporary suspension of production at Caudry to avoid a situation where we produce and then destroy products.
Following a thorough evaluation of different options for the site and meetings with key stakeholders, on 30 March, Nestlé France presented a plan to permanently cease manufacturing and sales by the Société des Produits Alimentaires de Caudry (SPAC).
Nestlé France has committed to find opportunities for affected employees, either within other entities of our French business or in the region, and to help identify a buyer to develop an alternative plan for the site.
In addition, as a leading employer in the Hauts-de-France region, we have pledged a one-off financial contribution to support local employment by contributing to the Caudrésis-Cambrésis industrial revival fund. The French State announced plans to invest up to 3 million EUR that may be complemented by regional funds. Nestlé France will match every euro of public money invested up to a total of 5 million EUR.
As a matter of priority, over the next months, we will work hard to ensure a constructive social dialogue related to the planned cessation of production at Caudry, alongside plans to identify a potential buyer for the site.
