Breweries to be kept open as Courage axes 700 jobs
Saturday 16 October 1993
The move comes as brewers struggle against the twin problems of overcapacity in beer production and declining consumer demand. Heightened competition has led to fierce price-cutting.
Courage brews its eponymous Best and Director's bitters, John Smith's, Fosters and Kronenbourg 1664. The 700 redundancies - which represent one in eight employees - will be spread across Courage's 35 installations.
Ian Mchoul, the Courage director responsible for strategy and planning, said: 'People outside the industry get very excited about brewery closures but the cost of running breweries is only about a quarter or a fifth of the whole. It is not as significant as people think.'
But he added: 'We have obviously looked at the breweries, against the backdrop of overcapacity and declining volumes. I cannot say we will never close a brewery but we have done the economics and at the moment closure does not make sense.'
He said that the cost of the redundancies programme has already been provided for in company accounts. Courage is owned by Fosters Brewery, the Australian group. 'It will cost us a substantial chunk of money but the programme will not hit profits,' Mr Mchoul said.
He added that efforts would be made to re-employ workers in different parts of the business and Courage had undertaken to re-train people if necessary. Redundancy pay-offs would be generous.
As a pure brewer, Courage has been handicapped by falling beer prices. It does have beer supply agreements with the 1,500 Chef & Brewer pubs and the 4,500-strong Inntrepreneur chain.
However, the agreements are not permanent and have been struck at prices significantly higher than current market levels. They expire in 1995 and 1998 respectively.
View from City Road, page 20
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...