Denmark: Carlsberg shuts down half of its breweries in Europe
Danish brewing force, Carlsberg A/S, will shut down almost a half of its breweries in Europe. This would be a part of a plan to streamline production on the continent, a spokesman for the Copenhagen-based group said on September 27, according to Canadian Press. The brewery, which produces the Carlsberg and Tuborg beer brands, wants to close 14 of 29 beer plants but has not yet decided which breweries will shut down and when, or how many jobs will be affected.
"As a group, our breweries also must become more efficient across the borders," group spokesman Jens Peter Skaarup said in an interview. "It will mean that some breweries will be closed. These cutbacks are necessary in western Europe where people are drinking more and more wine and there are fewer young people, who are traditionally big beer drinkers."
In an interview with the Boersen financial newspaper published Tuesday, Carlsberg chief executive Nils Smedegaard Andersen singled out the brewery in Copenhagen, saying "it likely would not exist" in six years.
"We cannot say when it is going to happen for the other breweries," Skaarup said. The other breweries are located in nine European countries.
In August 2005, Carlsberg said it would probably have to cut costs by the equivalent of about $80 million US a year if it wanted to increase profitability, warning that it would shut some breweries and lay off workers.
Founded in 1847, Carlsberg employs more than 31,000 people at 91 breweries around the world. The company produces 74 million bottles of beer daily worldwide and has its main markets in Europe and Asia.
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