US: Pernod to close Indiana distillery
Pernod Ricard will close one of its distilleries in the US after a review of its operations in North America found it had "significant excess capacity" on the continent following the takeover of Allied Domecq.
Pernod's US arm said yesterday (19 April) that its plant at Lawrenceburg, Indiana would close by the middle of 2008, with around 400 jobs under threat. A phased closure of the site is expected to begin next year.
Alain Barbet, president and chief operating officer of Pernod Ricard USA, said the review "clearly showed" that the company had "significant excess capacity" in North America, leading it to the "painful conclusion" to close the Lawrenceburg site.
"The plant closing should not be interpreted as a negative reflection on the Lawrenceburg employees," Barbet said. "However, as often happens in industry when acquisitions occur, the company simply had to ensure that our operations structure was organised to meet the ongoing needs of the business.
"Factors such as Lawrenceburg's dependence on third-party contracts - combined with the costs and complexity that would have been incurred by relocating other Pernod Ricard USA business here - ultimately were too much to overcome."
Barbet said Pernod would hold talks with union officials on severance packages, adding that the company would look for outside offers to buy the site.
Pernod owns four other sites in North America, three in the US and one in Canada.
Pernod Ricard has insisted its four remaining production sites in North America are safe after announcing it plans to close a US distillery. Pernod's US arm will close its site at Lawrenceburg, Indian...
The share ratings of Diageo, Heineken and Pernod Ricard were all upgraded today (20 April) by German broker Dresdner Kleinwort Wasserstein (DKW)....
A host of drinks companies spent the weekend mulling over whether to launch counter-bids for Allied Domecq, according to press reports over the last few days....
Fosters' A$3.2 billion takeover of Southcorp - now virtually assured with its sweetened bid - gives the brewing and wine group unassailable dominance of the Australian liquor market and further emphas...
Fitch Ratings has changed the ratings watch status of the UK drinks group Allied Domecq to "evolving" from "negative". The move follows news that Pernod Ricard has launched a takeover bid for Allied....
Cautious optimism is probably the best way to describe today's press reaction to Pernod's friendly bid for Allied Domecq....
Spirits firm Allied Domecq has agreed to a takeover bid from smaller rival Pernod Ricard, subject to agreement from Allied shareholders....
Allied Domecq last night accepted Pernod Ricard's offer to buy the UK-based drinks giant....
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- just the Ten - Top News Stories of 2014
- Review of the Year 2014 - Part II: Beer & Cider
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018