After consulting its employees, Glisten plans to close the Skegness site close at the end of March 2014. All 87 employees at the plant have been offered roles at other sites within the group in the UK. Most of the production carried out at Skegness will be transferred to Leicester.
Glisten makes own-label and branded boiled sweets, fruit gums, jellies, toffees, chocolates and popcorn for UK retailers.
Part of the Raisio Group, other Glisten divisions include savoury snacks and fruit and cereal snacks.
Mark Adcock, md, said: “We had to measure the cost and feasibility of increasing our manufacturing capacity in Skegness, against the fact that we have spare capacity at our other production facilities. This transfer will enable us to continue to meet the demands of the major retail customers who are fundamental to our business and continued growth.”