Market research
Castle Brands has announced job losses as part of a restructuring programme in its Ireland and UK offices in a bid to bring the company to profitability and grow its brands.
The restructuring, which will result in a reduction of personnel in both offices, is understood to have limited impact to operations.
Going forward, the Castle Brands portfolio of products will be marketed in the UK and Ireland primarily by third parties, with the decision of using external vendors and agencies a more efficient and cost effective means to sell and promote the company's products in these regions.
John Soden, the company's managing director of international operations said: "We have determined that the increasing use of third party vendors to market our products will help Castle Brands achieve its goals for the coming year by reducing overall costs. This was a difficult but necessary action to take, and I would like to thank each of our departing employees for their contributions to Castle Brands and wish them well in all of their future endeavours."
The reduction in workforce is expected to save the company over US$1m annually in selling, general and administrative expense going forward, after an initial charge of approximately $100,000 in the fourth quarter of fiscal 2008 related to severance and other expenses in connection with the reduction in workforce.
Castle Brands' portfolio includes Boru Vodka, Gosling's Rum, Sea Wynde Rum and Brady's Irish Cream.
Sectors: Spirits
Companies: Castle Brands
