Unilever, one of the largest employers in the Veliko Tarnovo region and the owner of the "Denny" ice cream brand, has relocated its ice cream production from Bulgaria as of August. Strashimir Grancharov, the company’s regional manager for Bulgaria, cited a shortage of workers as a key reason for the move, stating that labor shortages have made operations increasingly difficult, Money.bg reports.

The production of Unilever’s ice cream brands will now take place in Romania, Greece, and Turkey. Grancharov emphasized that this does not mean the company is shutting down operations in Bulgaria, but rather transferring production due to workforce challenges and the expectation of lower costs in these foreign markets.

Despite the production shift, Unilever’s ice cream factory in Debelets, Veliko Tarnovo, currently employs over 120 workers. The Bulgarian office of the British company assured that all employees affected by the closure will receive compensation. Meanwhile, Unilever’s brands will continue to be sold on the Bulgarian market, and all other company employees in Bulgaria will retain their positions.

Unilever entered Bulgaria’s ice cream market in 2018 after acquiring "Ice Cream Factory" LLC, a company producing well-known brands such as Denny, Cornet, Cremona, and Favorite. Prior to the acquisition, Unilever had already been present in the Bulgarian market with brands like Eskimo and Algida. At the time, "Ice Cream Factory" held a market share of between 5-10% in terms of volume and 10-20% in value, similar to Unilever’s existing market share.

The Debelets production plant, which opened in 2016, became Bulgaria’s second-largest ice cream manufacturing facility. It remained operational even after Unilever took over the business, but now its production is set to move abroad as the company adapts to changing labor and economic conditions.

Sources:

• Money.bg
• Capital