Dutch Coffee Giant JDE to Shutter Historic UK Factory After Six Decades, Ending 160 Jobs
June 19 - 2025
Coffee Geography Magazine
Dutch coffee conglomerate Jacob Douwe Egberts (JDE) plans to close its Banbury factory in the UK next year, marking the end of coffee production at a site that has operated for over sixty years. This difficult decision will impact approximately 160 employees currently working at the facility's packing operations.
The Banbury plant, originally opened by General Foods (GF) in the 1960s, has a long history in the town. While it once produced iconic products like Bird's Custard alongside coffee, its focus narrowed over time. Coffee production ceased entirely in 2023, resulting in hundreds of job losses and leaving only packing functions active.
JDE attributed the impending closure to the prohibitive costs of maintaining the aging facility. Following a "comprehensive review," the company determined that transforming Banbury into a "best-in-class packing facility" would require "significantly more investment" than previously anticipated. Maintaining the decades-old infrastructure was ultimately deemed "not financially viable." JDE emphasized this was "not an easy decision to take," stating their immediate priority is supporting affected employees throughout the consultation process.
JDE Coffee Factory in Banbury UK
This announcement follows a turbulent recent history for the site. JDE, which acquired the factory in 2015 after previous ownership by Kraft, faced widespread strike action in 2020 and 2021. This unrest stemmed from controversial plans to "fire and rehire" much of the workforce on less favorable contract terms, a proposal eventually avoided through a negotiated agreement with workers.
Union representatives strongly criticized the closure decision, placing blame on historical underinvestment. Mick Pollek, regional officer for Unite, argued there had been a "systematic management of decline in the infrastructure" at the plant. "Our workers there have done a phenomenal job since the last bout of redundancies," Pollek stated, "What we couldn't compete against is the fact that systematic owners have not put the money into the infrastructure that they should have." He offered a stark metaphor: "You can't blame JDE for that, that's just a house that they bought that has a leaky roof and has dodgy flooring."
Reflecting on the factory's legacy, JDE acknowledged its deep roots in the community: "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. Most importantly, we want to acknowledge and thank everyone who has worked at the factory over the past six decades."
A formal consultation process regarding the planned closure in 2026 is set to begin shortly, marking the final chapter for a significant industrial landmark in Banbury.