UK: Jobs uncertain at S&N’s Tadcaster brewery

More jobs face uncertainty at John Smith's Brewery in Tadcaster following a recent announcement by its owner to cut costs, Harrogate Advertiser Via Thomson Dialog NewsEdge reported February 26.

Brewing giant Scottish & Newcastle (S&N) says it is planning cost savings worth GBP50m over the next three years as part of a drive to maximise efficiencies in production and distribution as well as streamline back-office activities. S&N, which employs around 4,500 people in the UK, including around 250 at Tadcaster, says the cost savings will be split equally between its UK and international divisions.

Although no details of any Tadcaster job-cuts have yet been confirmed S&N has indicated some jobs across the group may have to go.

"We are looking at a number of options," said S&N's Finance director, Ian McHoul. "They may involve job reductions, but where they do, our people will be the first to know about them and we will make every effort to ensure that people who want to stay with us in another role can do that," he said.

The move comes little more than a month after 20 John Smith's staffs in Tadcaster were told their jobs were currently under review.

S&N began conducting emergency talks last month following the shock news that Tadcaster produced ale brand, Courage, was to be sold to Bedford-based brewer, Wells & Young's (W&YBC), in the next couple of months.

A S&N spokesman said part of that latest strategy was to optimise the use of the excellent brewing facilities that they had at Bedford for the Courage brand.

But Local MP for Selby, John Grogan, said the move proved "a worrying" time for the 22 people whose livelihoods were affected.

S&N, which also brews Foster's and Kronenbourg 1664, has warned that the nationwide smoking ban, due to come into force in the summer, is one of the main reasons behind this latest move.

The smoking ban, it says, will have an impact on UK sale volumes with the on-trade market set to decline by around five per cent during 2007.

S&N estimates that this will cost it around GBP10m in profits and it says it also faces a new hike in input prices - expected to be GBP20m in 2007.

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