Heineken makes changes to on-trade business

Heineken makes changes to on-trade business

Heineken UK is to cut jobs as part of a plan to merge its arms-length pub business, Scottish & Newcastle Pub Co, with the brewer's other on-trade operations in the country.

Scottish & Newcastle Pub Co (S&NPC) will be integrated with Heineken's free-trade pub supply business from 10 January 2011, Heineken UK announced today (8 October).

It is expected that the move will lead to 50 job cuts. A Heineken UK spokesperson told just-drinks that the combined workforce of both divisions was currently 640. Job losses would be across all functions, including finance, marketing and administration, as well as sales, he said.

S&NPC's managing and operations directors, Willie Crawshay and Kim Francis, could also leave the business. They will "lead the transition to the new structure whilst both considering new career opportunities," Heineken said.

Better alignment with our independent free trade operation will unlock new opportunities for both channels and ensure a good exchange of retailing skills, brand opportunities and synergies for the integrated channels," said the brewer.   

"In broader terms, it is another major step forward in our plans to focus our UK business and to achieve our ambition for a high quality, well supported pub estate," said Heineken UK's managing director, Stefan Orlowski.

The current five S&NPC geographic regions will be reformed to align with Heineken UK's three on-trade areas.

Earlier this year, Heineken agreed to sell UK drinks distributor WaverleyTBS to private investment group Manfield Partners for an undisclosed fee.