Beverage Bulletin... Diageo Wants 107 Irish Redundancies
Diageo, Global Brands, Responsible Retailing Laws, Cellar Trends, Anheuser-BUsch, Majestic wines, Coca Cola
Diageo, owners of the Guinness brand, is seeking 107 redundancies across its Irish operations as it cuts costs amid falling consumption.The group said it will enter into consultation with employees and it is proposed that as many as possible of the redundancies will be achieved through a voluntary programme over the next three months. It plans to reduce the size of its workforce across several areas of the business including support functions, sales, and marketing.
Global Brands Limited , which produces some of the UK's most recognised alcoholic drinks including, VK Vodka Kick, VK Vodka, Corky's Vodka Shots and Goldschlager, is using Palletforce's new £30m distribution hub at Burton-upon-Trent to transport its range to hundreds of major retailers and wholesalers. Kevin Hopkinson, Global Brands transport manager, said: "Our distribution operations are already run from Burton so it makes perfect sense to use Palletforce. "The unique member network means we can effectively deliver our consignments, which often come in different shapes and sizes, instead of sending half empty trucks across the country which helps cut costs."
Industry chiefs are meeting Home Office officials this week as part of on-going attempts to persuade the government to water down its controversial plans for new responsible retailing laws. Trade groups - including the British Beer & Pub Association (BBPA), BII and Noctis - will all be at the meeting on Wednesday, along with representatives from Mitchells & Butlers, Greene King, and Marston's, among others. The mandatory code of practice, currently passing through Parliament in the Policing and Crime Bill, contains a crackdown on irresponsible promotions, which most in the trade favour.
Cellar Trends, distributor of Grand Marnier in the UK, will cease distributing the orange and Cognac liqueur brand in March 2010. The firm's announcement follows news last week that Diageo has signed a deal with brand owner Marnier-Lapostolle to distribute Grand Marnier liqueur across Europe. Diageo will take over distribution in 26 markets from 1 July, with deals in other countries staggered over the next three years.
The maker of top-selling beers Stella Artois, Beck's and Budweiser has put its central and eastern European operations up for auction. Anheuser-Busch Inbev, the world's largest brewer, needs to raise cash to help reduce its mountain of debt. The group went to the top of the beer industry last year after Inbev paid £32 bn to buy Anheuser-Busch, creating a company with more than 200 brands worldwide. More on this story
Majestic Wine said underlying profit before tax for the year ended 30th March was down 22.3% to £12.7m (2008: £16.4m). Total sales in the year increased by 2.4% to £201.8m (2008: £197m), with the average bottle of wine purchased costing £6.35. Profit before tax down 55.8% to £7.4m (2008: £16.7m) after a non-cash impairment charge of £5.3m.
UK like for like sales for the ten weeks from 31st March to 8th June 2009 were up 2%. Majestic said it had made good progress with integration and seen an encouraging sales performance since the acquisition of Lay and Wheeler, a fine wine specialist, in March 2009.
The UK Office of Fair Trading has shrugged off competition concerns to approve Coca-Cola Co's acquisition of a stake in smoothie maker Innocent Drinks.
|
