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Nestlé jettisons Rowntree name
10:59am Thursday 10th April 2008
Comments (50)A MAJOR link with York's past has been severed with news that Nestlé is all but abandoning the Rowntree name.
Almost 20 years after it acquired Rowntree, the company has revealed its Nestlé Rowntree confectionery division will now trade under the name Nestlé Confectionery (UK).
Managing director Paul Grimwood said in a statement to The Press the change happened earlier this week.
He said while the company was extremely proud of its association with the Rowntree heritage, it was both a major exporter and a major importer within the Nestlé worldwide confectionery organisation - "and our division's name should better reflect what we do".
But he added: "Consum-ers are already very familiar with the Nestlé brand on many of our products and Rowntree's remains the brand name on all of our sugar confectionery."
In an internal email to staff, which has been passed to The Press, Mr Grimwood said Nestlé Rowntree had now completed two years of a successful three-year "fit for the future" business improvement programme.
"We have renewed our focus on our core competency - producing quality confectionery - and we have restructured our business so that it is fast, flexible and streamlined," he said.
He also revealed the company had a heritage assistant, who was compiling a comprehensive company archive and looking at ways of sharing its history both with employees and within the communities.
"This is a very positive step forward and a demonstration of the company's commitment to the confectionery business," he said.
City of York Council leader Steve Galloway said while the change of name might "disappoint some traditionalists," he was pleased the Rowntree name would continue as a "brand identifier."
He revealed he was set to tell councillors tonight a new Aero plant at the Nestlé site was nearing completion.
"The substantial investment guarantees Nestlé confectionery production in the city for the foreseeable future and will underpin the excellent trading results achieved by Paul Grimwood and his team.
"They are rightly proud of the progress that they have made with what is still a key industry for the city."
David Scott, the council's Labour group leader, said the change of name was a "real shame, given the importance of the Rowntree name to York and the people that live here," and he was sad to see it go.
He said: "Residents of York will not easily forget the legacy of the great family name.
"But it is unsurprising Nestlé has decided to do this.
"A company's primary objective is to maximise profits and Nestle obviously feel the inclusion of Rowntree in the name gives it a less modern public image."
Family's dismay at the end of an era'
A MEMBER of York's Rowntree family today spoke of her sadness at Nestlé's decision to jettison the name - but insisted that the Rowntree legacy would continue for ever.
Janet Rowntree, of Escrick, married a great-grandson of Joseph Rowntree, the Quaker philanthropist who built the chocolate factory in Haxby Road as well as providing decent homes for workers at the nearby model village of New Earswick.
She said today of the name change: "I find it sad really. It's the end of an era. I feel it's a shame.
"But the Rowntree legacy will live forever. The name will live on in people's memories, and through the trusts which do such wonderful work and through the schools which bear the name.
"You can still see the Rowntree name on buses and signs in the city too. To some people, it will always be Rowntree."
Janet, a York Quaker herself, spoke of the way that Rowntree had looked after its employees, in sickness and in health.
Meanwhile, Sir Donald Barron, who was chairman of Rowntree Mackintosh from 1966-1981 and subsequently chairman of the Joseph Rowntree Foundation between 1981 and 1996, said today of Nestlé's decision to drop Rowntree from its name: "It does seem a rather insensitive and one would think unnecessary thing to do. But it is perhaps recognition that the operation at York is different in character from the pre-takeover organisation.
"Perhaps more important is that the valuable brand names which Rowntree skills developed in York and made famous will continue to prosper."
Have your say
Is Nestlé right to drop the name Rowntree?
Your Say YourYork Press
Fergie, York says...
11:19am Thu 10 Apr 08
misskittie, York says...
11:53am Thu 10 Apr 08
Fergie wrote:Word on the street is 2012, with the exodus complete and factory on market by 2015. OK it's second hand info, but second hand from someone with links to the York managers. Perhaps we can start a sweep?
Won't be long before they abandon York.
The irony of it all is they'll move the factory to Poland where there are no skilled workers left thanks to them all being elsewhere in Europe!
franky, york says...
11:53am Thu 10 Apr 08
Exclusive By Mike Laycock
lol, because this York news would be covered by who else exactly?
The Crack Fox, Coming at you, like a razor says...
11:55am Thu 10 Apr 08
Choccybasha, York says...
12:19pm Thu 10 Apr 08
We're not going anywhere just yet. They've just knocked up a new Aero factory and invested millions in the York site. Just because some nitwit decides to get all melodramatic and go running to the press at a name changes equals exactly nish in the real world.
Besides... There has been no company called Rowntrees for 20 years!
Miss Amelia Rate, YORK says...
12:33pm Thu 10 Apr 08
Galloway Out, says...
12:41pm Thu 10 Apr 08
I also want to comment on one of the Rowntree family chirping up in disarray. It was your family that flogged Rowntrees off and put everyones jobs in jepoardy in the first place, so pipe down.
Miss Amelia Rate, YORK says...
12:43pm Thu 10 Apr 08
Black&White, York says...
12:51pm Thu 10 Apr 08
If you want to stop business moving abroad then stop buying deals and cheap products when you go shopping as it the cost of funding these that forces manufacturers to have to cut costs and go abroad to central and eastern europe e.g. Terry
Voice of reason, York says...
12:51pm Thu 10 Apr 08
Black&White, York says...
12:52pm Thu 10 Apr 08
If you want to stop business moving abroad then stop buying deals and cheap products when you go shopping as it the cost of funding these that forces manufacturers to have to cut costs and go abroad to central and eastern europe e.g. Terry
Galloway Out, says...
12:58pm Thu 10 Apr 08
Black&White wrote:What about the flat pack new kit kat building that is moving abroad, and was built with materials so they can do that?
The name Rowntree has not changed, the Rowntree brand is still one of Nestles most important and remains. All that has actually happened is that the confectionery side of Nestle is called Nestle Confectionery not Nestle Rowntree Confectionery. The reality is that Nestle have moved very little abroad and have invested 10s of millions into the site they are hardly going to waste that by moving in a couple of years. The only reason there is a confectionery business left in York is the investment Nestle have made because the Rowntree business had invested so little in the business it was in a poor state when it was taken over. If you want to stop business moving abroad then stop buying deals and cheap products when you go shopping as it the cost of funding these that forces manufacturers to have to cut costs and go abroad to central and eastern europe e.g. Terry
Stephen, York says...
1:08pm Thu 10 Apr 08
They have built a new mobile chocolate plant with builders from Europe.
Only for those same contract builders to dismantle it and rebuild it overseas in the future.
Before doing this they pay local employees extra overtime so they can build up choc stocks until other overseas plants can come up to speed.
The relocation of this new mobile plant could be sooner than you all think.
tracy, york says...
1:20pm Thu 10 Apr 08
beanymermer, york says...
1:21pm Thu 10 Apr 08
exYorkist, USA says...
2:13pm Thu 10 Apr 08
Manwithaview, York says...
2:21pm Thu 10 Apr 08
Alex, York says...
2:33pm Thu 10 Apr 08
Keith, York says...
2:42pm Thu 10 Apr 08
Alex, York says...
2:44pm Thu 10 Apr 08
Redr, york says...
3:10pm Thu 10 Apr 08
only human, HUNTINGTON says...
3:11pm Thu 10 Apr 08
franky, york says...
3:34pm Thu 10 Apr 08
You know sometimes I read the press and I think they WANT the factory to close just so they can roll out another doom and gloom special.
Exactly, Mike Laycocok is Mr doom and gloom. Seems like it's his (only?) specialty.
Choccybasha, York says...
3:36pm Thu 10 Apr 08
only human wrote:Nobody "opted to stay". Most people were happy to take redundancy and opted to leave... in fact some were jubilant.
The new terms and conditions currently being imposed on workers who opted to stay at the York site make it clear that the company can pull the plug if these changes dont go to plan in the near future.I suggest all affected employees read the small print.Their jobs are not safe.Their hours and pay structure is now flexible and wide open to alteration with 6 months notice.In short the factory is domed.The workers have been had by the short and curlies.To top it all off.Big brother is on his way in the form of cctv cameras.Beware workers.Good luck.You will need it.
There are very few in this country who can say their jobs are 100% secure... Nestlé employee et al.
Tonyone, trying to log onto the forum says...
3:38pm Thu 10 Apr 08
Bemused, says...
3:49pm Thu 10 Apr 08
Posted by: Alex, York on 2:44pm today
My favourite was a Breakaway, followed by Cabana, then maybe a Walnut Whip.
Kinky!
Black&White, York says...
3:52pm Thu 10 Apr 08
Galloway Out wrote:Yes and the lock ness monster really exists.
Black&White wrote: The name Rowntree has not changed, the Rowntree brand is still one of Nestles most important and remains. All that has actually happened is that the confectionery side of Nestle is called Nestle Confectionery not Nestle Rowntree Confectionery. The reality is that Nestle have moved very little abroad and have invested 10s of millions into the site they are hardly going to waste that by moving in a couple of years. The only reason there is a confectionery business left in York is the investment Nestle have made because the Rowntree business had invested so little in the business it was in a poor state when it was taken over. If you want to stop business moving abroad then stop buying deals and cheap products when you go shopping as it the cost of funding these that forces manufacturers to have to cut costs and go abroad to central and eastern europe e.g. TerryWhat about the flat pack new kit kat building that is moving abroad, and was built with materials so they can do that?
They have built the plant with the same materials that everyone builds factoies with now no different to anyone else.
If we all look at the small print on our contract you will notice that our employers have the right to change our terms and conditions. The fact they get 6 months is probably more than the notice period on most peoples jobs.
slornie, Birmingham/York says...
4:06pm Thu 10 Apr 08
Alex, York says...
4:16pm Thu 10 Apr 08
Alex, York says...
4:17pm Thu 10 Apr 08
ouserower, york says...
5:43pm Thu 10 Apr 08
the Butler, Cowichan Bay B.C Canada says...
6:03pm Thu 10 Apr 08
piaggio, holgate says...
6:27pm Thu 10 Apr 08
piaggio, holgate says...
6:28pm Thu 10 Apr 08
Black&White, York says...
6:36pm Thu 10 Apr 08
the Butler wrote:yes easy cash they paid 2billion for it and then had to spend 100s of millions over the last 20 years to bring the plants up to standard. If Nestle were going to move they wouldn't be building new plants, basing the european confectionery technical department in york, investing money in the quality of the products, doubling the investment in advertising. There is no flat pack factory, there was no clause of 20yrs, they are not planning on moving lock stock and barrel to Poland, the only reason we still have a manufacturing facility of this size in York is that Nestle are commited to York.
Nestles did not build the place to what it is. They saw an opportunity to make a load of easy cash AND DID, Just watch what they are up to from now on. Rowntrees,is the 'ghost' of Christmas past
piaggio, holgate says...
7:14pm Thu 10 Apr 08
Galloway Out, says...
9:05pm Thu 10 Apr 08
piaggio wrote:Of course they are. They do not give a funk about york, or their york employees
they are not planning on moving lock stock and barrel to Poland,????? yea right
petethefeet, York says...
9:33pm Thu 10 Apr 08
Black&White, York says...
9:58pm Thu 10 Apr 08
Galloway Out wrote:wow nice of the Nestle SA chairman to post on the York Press website. Can you pick my lottery numbers as you are obviously prescient.
piaggio wrote: they are not planning on moving lock stock and barrel to Poland,????? yea rightOf course they are. They do not give a funk about york, or their york employees
Tonyone, says...
11:14pm Thu 10 Apr 08
Ask someone involved instead of the tea lady.
mivvi, near York says...
12:21am Fri 11 Apr 08
Piaggio, the cr@p Rowntree pension was money purchase scheme
Tonyone, I don't know on what your info is based but I can only speak for the offices, in which I work. The Rowntree scheme was, & the Nestle scheme still is, final salary. What has changed is the redundancy terms. These were capped in Feb 2006 at 20 years continuous service with 4 weeks pay for each full year. Prior to that there was no service limit so anyone with over 20 years service lost out - some lost a lot. The argument given was Age Discrimination legislation(though nobody understood quite why) and the new terms were hailed by the Company as more generous than the existing & proposed statutary scheme - which they are, but still not a patch on the old Rowntree provisions.
The Rowntree family were not a factor of the take-over, they did not have controlling interest, it was the institutional shareholders who sold out. There will certainly be a manufacturing capacity on the York site for the next few years, albeit reduced in size, but market forces will dictate how long that remains. 5 years perhaps?
And there was a 20 year undertaking to retain the name and the site - which is about to expire.
piaggio, holgate says...
8:56am Fri 11 Apr 08
??????. i did ! i.ve just left after 32 years
Galloway Out, says...
10:52am Fri 11 Apr 08
Black&White wrote:Incorrect. I work on Nestle site, and was involved in the construction of the building. So I know what I am talking about.
Galloway Out wrote:Yes and the lock ness monster really exists. They have built the plant with the same materials that everyone builds factoies with now no different to anyone else. If we all look at the small print on our contract you will notice that our employers have the right to change our terms and conditions. The fact they get 6 months is probably more than the notice period on most peoples jobs.Black&White wrote: The name Rowntree has not changed, the Rowntree brand is still one of Nestles most important and remains. All that has actually happened is that the confectionery side of Nestle is called Nestle Confectionery not Nestle Rowntree Confectionery. The reality is that Nestle have moved very little abroad and have invested 10s of millions into the site they are hardly going to waste that by moving in a couple of years. The only reason there is a confectionery business left in York is the investment Nestle have made because the Rowntree business had invested so little in the business it was in a poor state when it was taken over. If you want to stop business moving abroad then stop buying deals and cheap products when you go shopping as it the cost of funding these that forces manufacturers to have to cut costs and go abroad to central and eastern europe e.g. TerryWhat about the flat pack new kit kat building that is moving abroad, and was built with materials so they can do that?
Galloway Out, says...
10:54am Fri 11 Apr 08
Black&White wrote:Well, who are you. You are awfully defensive of Nestle and seem to think you know it all???
Galloway Out wrote:wow nice of the Nestle SA chairman to post on the York Press website. Can you pick my lottery numbers as you are obviously prescient.piaggio wrote: they are not planning on moving lock stock and barrel to Poland,????? yea rightOf course they are. They do not give a funk about york, or their york employees
In reality, you are probably some dummy cleaner who works there part time.
piaggio, holgate says...
2:47pm Fri 11 Apr 08
Galloway Out, says...
3:46pm Fri 11 Apr 08
piaggio wrote:Yes I do.
i hope you dont mean me!!
piaggio, holgate says...
6:39pm Fri 11 Apr 08
piaggio wrote:that was taken from black&white...
they are not planning on moving lock stock and barrel to Poland,?????
Tonyone, says...
11:26pm Fri 11 Apr 08
The R&Co scheme was money purchase and they are popular with employers to this day because they are cheap. You lot in the 'offices' may have had preferential treatment in the old days, but most of us were in a 'money purchase' scheme.
mivvi, near York says...
1:07am Sat 12 Apr 08
Mivvi; you're wrong but i don't expect you will read this by now.
The R&Co scheme was money purchase and they are popular with employers to this day because they are cheap
Tonyone, I know all about money purchase, and if that's the case for the factory then I stand corrected. I wonder which era you're coming from because when I joined the place, R&Co was fast being replaced by RM, which lasted until 1988. As I said, I can only speak for the office management staff. The fact is, that for office staff, the Rowntree scheme was, & the Nestle scheme still is, final salary. And with an Added Years option to retire on full pension at 60 the retained RM scheme is a brilliant deal. Sadly, the redundancy terms were reduced in Feb 2006, but they're still pretty good.
The Nestlé factory in Wigginton Road
Janet Rowntree outside the Haxby Road factory
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Captain Jack Sparrow, Strensall says...
11:15am Thu 10 Apr 08
Nestle have raped Rowntree for the brands, milked it for all it's worth and retreated to Switzerland.
They're a funny lot the Swiss. Lots of Jewish gold and works of art that were never returned after the 2nd world war and Toblerones.