Molson Coors Beverage Co. has proposed to shut its brewery in Cork, Ireland, as it plans to cease production of the Franciscan Well brands made at the site.
According to a statement from the US giant, it will stop producing the Franciscan Well brands “early in the new year”.
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The Franciscan Well brewery closure is set to impact 15 employees.
“Unfortunately, despite great work from the team, in the face of a challenging craft beer category and other economic pressures impacting our customers and consumers, it has not been possible to grow the brands to the level needed to sustain the brewery as part of our UK and Ireland production network,” Molson Coors said.
While the company plans to close the Cork business, it said it remains “open to conversations with interested parties about the future of the brewery and brands”, the brewer added.
Franciscan Well produces craft beers such as Chieftan IPA and Rebel Red Ale.
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By GlobalDataThe news comes as the US brewer recorded impairment charges worth almost $4bn in its most recent third quarter financial results.
The impairment charges meant Molson Coors booked a third-quarter operating loss of $3.43bn and a net loss of $2.93bn. The results compared to a third-quarter operating income of $451.2m and a third-quarter net income of $199.8m a year ago.
In the three months to the end of September, Molson Coors generated net sales of $2.97bn, down 2.3% on a year earlier.
Sales in the Americas fell 3.6% and were 2.4% lower in the company’s combined EMEA and APAC division.
Molson Coors posted an “underlying” third-quarter net income of $330.8m, against one of $374.4m in the corresponding period last year.
Last month, the brewer revealed it was also planning to cut jobs in the Americas as new CEO Rahul Goyal says the US giant “must transform even faster”.
