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Kellanova has announced plans to invest £75 million in its cereal factory in Wrexham, North Wales.
The investment marks the company’s (formerly Kellogg Company) largest single investment in British cereal production in the last 30 years.
The factory, which opened in 1978, is Kellanova’s largest Special K plant in the world and also produces some of its other brands, including All Bran, Bran Flakes and Fruit ’n Fibre.
The production of other cereal brands made in the UK – including Corn Flakes and Crunchy Nut – will transition to Wrexham as the company prepares to end production at its Trafford Park factory in Manchester, which is set to close in late 2026.
FoodBev first reported on the Trafford Park’s site closure in May this year. Currently, about 1 million boxes of cereal including Rice Krispies and Coco Pops are made at the Manchester site every day. At the time of the announcement, Kellanova said it hopes to retain its production volumes in the UK – with today’s investment announcement supporting this.
As a result of the £73 million investment, the Wrexham plant’s current annual cereal production will more than double, establishing it as the ‘largest cereal manufacturing site in Europe,’ producing around 1.5 million boxes of cereal brands every day.
Additionally, two new advanced production lines will enhance the sustainability of cereal manufacturing – enabling the use of artificial intelligence and machine learning technology to lower energy consumption during the production process.
These new production lines are expected to reduce the factory’s CO2 emissions from cereal production by 11% annually, which is the equivalent of 600,000 trees. The new technology also means that more of the raw materials, for example rice, can be used, delivering a ten-fold reduction in food waste across the supply chain.
The investment will also see new packaging lines installed, with existing production lines upgraded to improve the efficiency of cereal packaging at the factory. The new lines offer increased flexibility and will enable Kellanova to easily introduce new cereal formats and ingredients in future to meet evolving consumer tastes.
The investment will lead to the creation of at least 130 jobs in Wrexham, creating continued employment opportunities for colleagues in its Manchester plant – as a result of the site’s closure, around 360 roles are at risk.
Kellanova’s UK managing director, Chris Silcock, said: “This investment is a major commitment to cereal production in the UK. By bringing together the manufacturing of all our major breakfast cereals at one site in Wrexham, we can make significant leaps forward in the efficiency, quality and sustainability of our operation. It sets us up for future success and opens up new possibilities for our iconic brands to continue delighting our customers and consumers.”
The UK Government’s Business and Trade Secretary, Jonathan Reynolds, commented: “Kellanova's cereals are much loved by many households across the UK, so it’s great news that this investment will not only ensure their continued production in North Wales, but also create 130 local skilled jobs. Increasing investment is a mission at the heart of this government...this is a further stamp of approval for the Welsh economy and our plans to make Britain the investment destination of choice.”
The news follows confectionery giant Mars' $35.9 billion acquisition of Kellanova, which was first announced in August. The acquisition marked Mars' largest deal to date, surpassing its $23 billion purchase of Wrigley in 2008, and saw the firms' consolidate their portfolios of consumer brands, combining Mars's chocolate products with Kellanova's snack offerings.
A Kellanova spokesperson told FoodBev that the firm expects the upgrades to be complete in 2026.
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