Heinz to sell frozen foods division

FOOD giant Heinz is to sell its frozen and chilled food business, which employs 2,300 workers in Ireland and Britain.

It will look for potential buyers over the next six to 12 months as part of a "transformation plan".

Sites affected include one in Dundalk where 400 people are employed.

Heinz established its initial manufacturing facility in Dundalk to make chilled pizzas for the British market in 1993. It later introduced new frozen meal products under the Weight Watchers from Heinz brand together with branded frozen pizzas and bagel bites.

The move is part of the sale of Heinz's European seafood and frozen and chilled food businesses, which the company said would enhance sales and earnings growth.

Heinz Europe president Joe Jimenez said the plan would make the company more "leaner and nimble" and allow it to invest in its three core products, including ketchup and meals.

Paul Kenny, acting general secretary of the GMB union, said: "GMB members working for Heinz have enjoyed good industrial relations with a wealth of family-friendly policies.

"GMB will expect any new owner to continue with the good practice that is in place now so that our members can continue to work for the benefit of the company and themselves.

"The local communities rely on the work provided by their Heinz sites and could easily be devastated by any changes to them."

The news comes less than a week after Unilever said it was considering its options for Birds Eye and its other European frozen food operations.

Unilever is likely to consider a full or partial sale among the possible moves for the division, which trades in 11 European countries but has recently seen disappointing sales.