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17/02/2004
170 jobs to go at Edinburgh brewery
One hundred and seventy jobs are to go following the closure of Scottish Courage Ltds Fountainbridge Brewery in Edinburgh.
Scottish Courage, whose parent company is Scottish & Newcastle, confirmed today that it will enter into "full consultation" with unions and employee representatives. It is anticipated that the closure, effective from December, will result in 170 job losses at the site.
Affected employees will be offered retraining, relocation opportunities within the group or redundancy compensation, the company said.
Scottish Courage – which markets brand names such as Foster’s, John Smith’s, Kronenbourg 1664, Strongbow, McEwan’s, Newcastle Brown Ale, Miller and Beck’s – said that it had been forced to take its decision to reduce costs in what has become a "mature and competitive UK beer market".
"There are a number of factors, including the Fountain Brewery’s high fixed operating costs, low capacity utilisation, and City centre location which combine to mean that continued production from the site is no longer commercially viable," a company spokesperson said.
John Dunsmore, Chairman and Managing Director of Scottish Courage Limited, said: “As part of the ongoing review of the UK business, we investigated a range of options to allow us to keep the Fountainbridge Brewery open. Unfortunately, none of these options proved viable and it is with regret that we announce today our intention to close the brewery at the end of this year.
“Our Fountainbridge employees have made a significant contribution to the company and our priority is to support them fully over the coming months.”
Production of the McEwan’s ale brands will remain in Scotland, and will be brewed in Edinburgh at the Caledonian Brewery. Lager production will be transferred to other Scottish Courage breweries in the UK.
Scottish Courage also announced today that it has entered into an agreement with the Caledonian Brewery Limited, to acquire a brewery in Slateford Road, Edinburgh.
Jobs at the former Caledonian Brewery will not be effected.
(gmcg)
Scottish Courage, whose parent company is Scottish & Newcastle, confirmed today that it will enter into "full consultation" with unions and employee representatives. It is anticipated that the closure, effective from December, will result in 170 job losses at the site.
Affected employees will be offered retraining, relocation opportunities within the group or redundancy compensation, the company said.
Scottish Courage – which markets brand names such as Foster’s, John Smith’s, Kronenbourg 1664, Strongbow, McEwan’s, Newcastle Brown Ale, Miller and Beck’s – said that it had been forced to take its decision to reduce costs in what has become a "mature and competitive UK beer market".
"There are a number of factors, including the Fountain Brewery’s high fixed operating costs, low capacity utilisation, and City centre location which combine to mean that continued production from the site is no longer commercially viable," a company spokesperson said.
John Dunsmore, Chairman and Managing Director of Scottish Courage Limited, said: “As part of the ongoing review of the UK business, we investigated a range of options to allow us to keep the Fountainbridge Brewery open. Unfortunately, none of these options proved viable and it is with regret that we announce today our intention to close the brewery at the end of this year.
“Our Fountainbridge employees have made a significant contribution to the company and our priority is to support them fully over the coming months.”
Production of the McEwan’s ale brands will remain in Scotland, and will be brewed in Edinburgh at the Caledonian Brewery. Lager production will be transferred to other Scottish Courage breweries in the UK.
Scottish Courage also announced today that it has entered into an agreement with the Caledonian Brewery Limited, to acquire a brewery in Slateford Road, Edinburgh.
Jobs at the former Caledonian Brewery will not be effected.
(gmcg)
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