Drinks group Merrydown is to close a factory in the village of Horam, east Sussex, where production began more than half a century ago, it announced today.
Merrydown’s offices will be moved to Reigate, Surrey, where Merrydown’s Shloer soft drink management team is based. Production will be moved to a number of sub-contract manufacturers.
Merrydown, which makes Shloer and Merrydown cider, described the decision to end its historic link with the village at the end of the year as “painful”.
The group, based at Heathfield in east Sussex, began in 1946 when its founders set up the business at a cottage in Horam.
The first batch of Merrydown Vintage Cider was fermented from 450 gallons of apple juice and rose to 400,000 gallons by 1955.
Chief executive Nigel Freer said: “Given Merrydown’s history in Horam this is a painful decision which has not been taken lightly.
“But in the final analysis, we believe this is the best use of assets and concentrates our resources on the strategy of managing our brands.”
Further investment in the Horam factory had been considered, but was ruled out due to the site’s manufacturing capacity limits.
Merrydown posted a 26% rise in profits to £1.7m in its last financial year.
Shares rose nearly 3% or 2.5p to 92p.
References: EGi News 15/07/04
