Little Moons, a well-known mochi ice cream brand, has announced plans to close its newly established factory in Kettering and cut jobs, indicating a significant shift in its recent expansion strategy.
Earlier this year, Little Moons inaugurated a substantial 50,000 sq ft facility in Kettering, following the closure of its two London-based factories. The move was initially described as a major step for the company, intended to centralise production and increase efficiency. This expansion came on the back of a remarkable increase in the company’s turnover, which grew from £25.5 million to £68.5 million over 18 months. This growth was driven by strong sales in key markets such as the UK, France, Germany, and Australia.
However, the company has now revealed plans to revert its production back to the two London sites. A spokesperson for Little Moons stated that a thorough review of their business operations had been conducted, focusing on maintaining operational efficiency for a stable future. “This has resulted in proposed structural changes across the whole business: how we go to market, manufacture and support the business,” the spokesperson explained, adding that these changes include the consideration of consolidating operations back to Park Royal and Wembley from Kettering.
The proposed changes are expected to lead to job losses, and staff potentially affected by these proposals have already been notified and are undergoing formal consultations. The company is attempting to mitigate redundancy risks by not filling vacant positions and offering current employees opportunities to explore new roles within the organisation. Despite these challenges, the spokesperson expressed optimism about Little Moons’ growth prospects, noting that these measures are necessary to achieve future success.
Significantly, in March, Little Moons appointed Joanna Allen, former CEO of snack brand Graze, as the new chief executive. Her appointment was regarded as timely, given the strategic shifts now being contemplated by the company.
As Little Moons navigates this period of transition, its focus remains on achieving long-term stability and growth. The company’s decision to reverse its expansion strategy underscores the complexities of rapidly changing market conditions and the need for adaptability. Moving forward, Little Moons appears committed to refining its operational structure to ensure continued success in an increasingly competitive market environment.
