POLAND: SABMiller brewer Piwowarska to cut jobs
Poland's largest brewer and SABMiller subsidiary, Kompania Piwowarska, plans to cut more than 80 jobs as the economic downturn hits beer market growth in the country.
Piwowarska said this week that it intended to terminate the contracts of more a than 70 employees at its Kielce brewery and more than a dozen at its Opole distribution centre.
The brewer said it had made the decision after "having analysed the current economic situation and the prospects of change in the Polish beer market".
Jobs will be lost at Piwowarska as part of a plan to reduce beer production. "It has been agreed that our production capacity will be reduced through the suspension of the operation of two packaging lines at the Kielce brewery," said the brewer, adding that these lines are the most costly to run throughout the business.
Poland's gross domestic product is expected to decline by 5.6% in 2009, according to a European Commission estimate.
SABMiller said in January that its organic beer volumes in Poland rose by 2% for the nine months ended 31 December, but Piwowarska said this week that it has seen a deterioration in growth in recent months.
"The slowdown in the beer market in Poland will certainly persist," said the group, which owns the Tyskie beer brand.
It said it expected beer volumes to flatten, due to lower consumer spending power and financial problems for its distributors. It added that a weakening exchange rate will increase costs and that a near-14% tax rise on beer, set to be implemented on 1 March, will mean higher prices.
Piwowarska has opened a consultation on the job losses with labour unions and hopes to finalise the cuts by the end of March.
A shift in demand for premium beers in western markets and a cautious second-half outlook has taken some of the shine off a strong first half performance from Anheuser-Busch InBev, writes Michelle Rus...
SABMiller CEO Graham Mackay has reiterated that the group is interested in acquisitions, but the brewer has not been as inactive in the last 18 months as some may suppose....
The top ten stories published on just-drinks this week:...
In 1996, Hangzhou Wahaha Group Co, a leading beverage producer in China, began a joint venture with Danone Group to form five new subsidiaries....
Diageo is sourcing enough antiviral medicine Tamiflu for all of its employees worldwide, as it and other drinks firms ready pandemic flu strategies in response to the H1N1 'swine flu' virus....
SABMiller has secured a temporary court injunction to block Diageo subsidiary East African Breweries Ltd from buying a stake in a rival brewer in Tanzania....
SABMiller is set to publish a water use "footprint" for its brewing businesses in Czech Republic and South Africa at a conference on global water supplies in Stockholm this week....
Coca-Cola Amatil has posted a healthy set of half-year results, driven primarily by its beverage businesses in Australia....
- Focus - Pernod's YTD Performance by Region
- Comment - Will We Understand the Language of Rum?
- just On Call - Pernod shifts Scotch focus in China
- Focus - Heineken's Q1 Performance by Region
- just The Preview - Pernod Ricard's Q3 & YTD
- CFO of Diageo's United Spirits stands down
- Pernod Ricard sees YTD recover as sales increase
- BrewDog launches GBP25m crowd-funding attempt
- Remy Cointreau US head to step down
- Africa "subdued" but Heineken sees Q1 rises
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Bacardi Limited - Strategy and SWOT Report
- ALDI 2015: Radically transforming Anglo Saxon grocery markets