The decision comes after a review deemed the investment needed to upgrade the plant financially unviable, despite its nearly 60-year history of coffee production and packaging.
Jacob Douwe Egberts (JDE), the renowned Dutch coffee-making conglomerate, has declared its intention to close its long-standing factory in Banbury next year. The move, set to impact around 160 employees, marks the end of an era for a site that has been a cornerstone of local industry since the 1960s, initially under the General Foods (GF) banner.
The company stated that the decision, while difficult, was a result of a comprehensive review that revealed the prohibitive costs associated with maintaining and upgrading the aging infrastructure. "This was not an easy decision to take," JDE affirmed in a statement. The review, aimed at assessing the investment required for Banbury to operate as a "best-in-class packing facility," concluded that "significantly more investment" was needed than initially anticipated, rendering the continued operation "not financially viable."
Mick Pollek, Unite's regional officer, voiced concerns over what he described as a "systematic management of decline in the infrastructure" at the plant. While acknowledging that JDE inherited a facility requiring substantial investment, he highlighted the dedicated work of the employees, particularly since coffee production itself ceased in 2023, leading to hundreds of job losses and leaving only the packing facilities operational. "Our workers there have done a phenomenal job since the last bout of redundancies," Pollek stated, adding, "What we couldn't compete against is the fact that systematic owners have not put the money into the infrastructure that they should have."
The factory, which opened its doors as a General Foods plant in 1964, has a rich history of producing various food and drink items, including the iconic Bird's Custard. Over the decades, it underwent changes in ownership, being acquired by US food giant Kraft before JDE took over in 2015. The plant has also been a site of significant industrial action, notably in 2020 and 2021, when JDE faced widespread strikes over proposals to fire and rehire staff on less favorable contract terms. Workers ultimately reached an agreement to avoid the contentious proposal.
Despite the impending closure, JDE expressed gratitude to the local community and its workforce. "We are proud to have manufactured and packed coffee in Banbury for almost 60 years and would like to thank the local community for their valued support," the company said. "Most importantly, we want to acknowledge and thank everyone who has worked at the factory over the past six decades." A consultation process regarding the planned 2026 closure is expected to commence shortly, as the Banbury community prepares for the end of an significant chapter in its industrial heritage.
