Iceland Foods is converting its estate of open chiller cabinets to more energy efficient fridges in an effort to tackle its soaring energy bills.
The frozen food retailer is working with refrigeration manufacturer The Bond Group to convert open chiller cabinets to fridges with doors in 150 Food Warehouse stores in the UK.
According to The Grocer, the works are set to be completed by November this year.
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In September, executive chairman Richard Walker said the company’s energy costs had grown by more than £20 million, leaving the business “fighting to keep the lights on” due to its reliance on chillers and freezers.
This prompted concerns about the supermarket group’s ability to refinance its £550m bond debt, following the decision by French insurer Coface to withdraw cover to Iceland suppliers in February.
It was the third to do so in the space of a few months, after Atradius and Allianz also limited exposure.
Iceland insisted that it remained incredibly ‘well positioned’, and has been working to reduce its energy costs.
The news comes as Iceland partners with Just Eat to offer rapid delivery of its products, where over 14% of its shoppers have used the service since its launch, new research shows.
