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Potato company CelaVita is in dire straits

June 25, 2025 - Redactie Boerenbusiness - 4 comments

Potato company CelaVita in Wezep is in dire straits, having lost Albert Heijn as an important customer this spring. In order to compete better on the market, CelaVita must reduce costs and the company is investing in new markets, including fresh fries. In ongoing negotiations on a new collective labor agreement, CelaVita has asked the unions in a final offer to moderate the demands.

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In the final offer to the unions FNV and CNV, CelaVita, which is owned by investment company Nimbus, indicates that the company is now operating at a loss. One of the main reasons for this is that CelaVita lost about a quarter of its sales in April of this year due to the loss of chilled volume to Albert Heijn. As a result, the company now sells 650 to 700 tons per week instead of the initial 850 to 900 tons. In addition, the company is having difficulty attracting new customers to increase sales, because they say they are 15% to 25% more expensive than their competitors.

Investing in new markets
This is not due to the raw material costs, or the purchase and contracts of the potatoes, CelaVita indicates. The company finds that it is more or less on the same level as its competitors. The price difference is mainly due to the internal costs. CelaVita assumes that it will not grow substantially in volume until the end of this year. The company is investing in other markets, including new production lines for fresh fries and gnocchi. It takes time to get these new products on the market. 

If it succeeds in conquering new markets, CelaVita hopes to break even in 2026 and to be able to make a profit in 2027 'for the first time in years'. To achieve this, it is essential that costs do not increase further in 2025, the group emphasizes in the final proposal to the unions. CelaVita's final offer for a new collective labor agreement, which in the company's eyes should have a term of 1 year from July 1, 2025 to June 30, 2026, includes a two-step wage increase. This is a wage increase of 1,5% as of January 1, 2026 and another 1,25% as of May 1, 2026. These percentages are far removed from the unions' commitment to a 5% wage increase. 

Taking action not ruled out
CelaVita also proposes to reduce the allowances for shift work. The CNV union has already stated that the final offer with the proposed wage increases in two steps does not fully compensate for inflation. The offer is therefore not 'inflation-proof', CNV notes, and the wage increases will also come late next year. The union also has questions about the reduction of the allowances for shift work. CNV has scheduled two consultations with the members tomorrow (Thursday 26 June) to discuss the final offer. The union explicitly does not rule out taking action as the final outcome of these consultations.

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