Brasseries Kronenbourg is in talks with workers to sell one of its French breweries. The Scottish & Newcastle subsidiary confirmed yesterday (16 February) that it has begun consultation with its workforce over the proposed restructuring of its brewing business.

The proposals include the sale of Champigneulles brewery near Nancy, and an increased focus on premium brands and operations at Obernai brewery near Strasbourg, S&N said.

An update on the consultation process will be provided in due course, the company concluded.

Speaking to just-drinks today, a spokesperson for S&N confirmed it was looking to sell the smaller of its two French breweries. "We are hoping to sell the brewery as a going concern," the spokesperson said. "Everything is being done in close consultation with the workers." The spokesperson added that the Champigneulles brewery was currently only running at half capacity, and that there was the possibility that almost half of the workers would transfer to Obernai. "We are at a very early stage (of the process)," the spokesperson pointed out.

In September last year, S&N cut 70 jobs at the Kronenbourg brewery in Obernai. The company was hoping to achieve the staff reductions through early retirement, while at the same time investing around EUR23m in the brand between that time and 2007.