UK: Molson Coors defends payment terms change
Molson Coors UK extends supplier payment term
Molson Coors UK has defended its decision to extend the length of time it takes to pay suppliers, following criticism from a business trade body.
Molson Coors UK confirmed today (20 September) that the brewer will take up to 90 days to pay suppliers, compared to 60 days previously. The move was effective from 1 September.
The move was criticised by the Forum of Private Business in the UK, which has added Molson Coors to its "late payment Hall of Shame". Forum spokeperson Phil McCabe said: "Many small-to-medium enterprises simply can’t afford to wait months and months to be paid for work they have carried out."
Molson Coors defended its position. "The total [UK] beer profit pool is down approximately 30% over the last five years," a spokesperson for the Carling lager brewer said.
"As part of a global initiative on working capital, we are changing our supplier payment terms to be more consistent with industry standards and to be more competitive in the global beer market."
Other major brewers in the UK have extended payment terms for suppliers over the last couple of years, reflecting financial pressure on the country's beer market. Anheuser-Busch InBev and Carlsberg, for example, have payment terms of around 120 days.
- Interview Berry Bros & Rudd CEO Dan Jago - Part I
- The threat of excess choice in beer is over-stated
- Key trends for the spirits sector in 2017 - Focus
- Signs of life in Japan's beer market - Comment
- Interview Berry Bros & Rudd CEO Dan Jago - Part II
- Pernod Ricard's Method and Madness Irish whiskey
- Pernod unveils new St Patrick's Day Jameson bottle
- Diageo faces US$68m payout after SAP court loss
- Premium to counter mainstream in gin - research
- Wm Grant names Victor Jerez business director
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends