Royal A-ware Plans Closure of Belgian Dairy Factory

Dutch food conglomerate Royal A-ware has announced plans to shut down a dairy facility operated by its Belgian subsidiary Olympia, potentially putting more than 100 jobs at risk. The plant, located in Herne near Pajottegem in the Flemish Brabant province, produces a range of dairy products including cream, oatmeal desserts, yoghurts, milk, and chocolate milk. While the closure plans are still in their nascent stages, Royal A-ware has made clear that the plant’s antiquated infrastructure makes continued operations economically unviable.

Olympia, a family-operated business until its acquisition by Royal A-ware in September 2022, has faced financial difficulties since 2018. Despite increased investment aimed at boosting efficiency, the company's outdated facilities necessitate complete reconstruction to meet contemporary standards, costs that Royal A-ware deems unjustifiable. Although attempts were made to find methods to turn around Olympia’s profitability, all have yielded unfavorable outcomes, leaving closure as the only viable option, according to Royal A-ware. The Olympia brand, known for its own dairy products and private-label offerings, claims to supply nearly all supermarkets in Belgium.

As a broader strategy, Royal A-ware has been actively expanding through acquisitions and investments across Europe, including the purchase of a dairy facility from Danone in Spain in 2023. With operations not limited to Belgium alone, Royal A-ware maintains a presence in the Netherlands, Spain, and the United States.