UK: Cains suspends brewing operations - report

By | 13 May 2013

Cains has called a halt to production at its Liverpool brewery, with plans to sub-contract its operations to a third-party, according to local reports. 

The move comes a month after the company announced plans to transform its site into a GBP50m (US$76.9m) 'Brewery Village' - to include a hotel, food market, restuarants and appartments. Cains MD Sudarghara Dusanj confirmed late last week, however, that its brewing and canning operations have stopped.

“The own-label brewing and canning business for the supermarket industry has been deteriorating for some time because of competition from modern, purpose-built operations, many of them overseas," he was quoted as saying by the Liverpool Echo

Dusanj added: “It is with regret....that all own label brewing and canning business for supermarkets has ceased with immediate effect. We would like to thank our staff for their dedication and hard work over the years and to wish them the very best for the future." 

Thirty-eight of Cains' 56-strong workforce are set to lose their jobs as a result of the move, it was reported. 

A Cains spokesperson added: “The nature of our brewery is such that its operation cannot be scaled down in a simple fashion and it would be financial madness to continue with such huge overheads for a relatively small brewing operation.”

However, the spokesperson said the brewery remains "at the heart of its plans" for the new development, which is still to receive the go-ahead from Liverpool City Council. 

Nobody was available for comment from Cains when contacted by just-drinks. 

Expert analysis

Beer in the United Kingdom

In 2011 beer sales remained weak due to the ongoing and growing consumer concern about government spending cuts on jobs and incomes, which continues to constrain consumer spending. Total volume sales of beer declined by 5%, a more dramatic decline compared to the previous year and slightly sharper than the review period total volume CAGR. This was due to ongoing beer tax increases in March, with beer seeing excise duty increased two percentage points above the level of inflation at 5%. This tax...

Sectors: Beer & cider

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