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Carlsberg warns of brewery closures – just On Call

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Carlsberg warns of brewery closures – just On Call

Carlsberg warns of brewery closures – just On Call
November 12
11:53 2015

Carlsberg said it may close more breweries as it outlined new cost-cutting measures that include the loss of 2,000 jobs and a UK restructuring.

CEO Cees ‘t Hart said today that declines in Europe and China will lead to a reduction in the Danish brewer’s excess capacity that will “possibly include some brewery closures”. Hart did not give further details and a company spokesperson declined to comment on where the closures could take place or when.

Speaking after Q3 results that saw the company take a DKK7.7bn (US$1.1bn) hit, mainly from impairment costs for Russian brands and assets in China, Hart also said Carlsberg will take action in the UK, where “performance has worsened” and supermarket chain Tesco delisted the company’s brands this year. He said the company will restructure the business with an aim to “reduce capacity and costs”.

The moves come on top of an ongoing headcount reduction in Carlsberg’s white-collar roles that will see about 2,000 jobs go by the end of next year. The losses total about 15% of the brewer’s office staff and are expected to fall in Carlsberg’s European and Chinese business units, the spokesperson said without giving further details.

As of the end of last year, Carlsberg had 46,800 employees, according to its annual report.

Carlsberg has been hit by declining beer consumption in Russia, its core market, and has closed breweries in the country. In June, Hartreplaced Jørgen Buhl Rasmussen as CEO.

Asked why Tesco delisted Carlsberg, Hart said: “It’s a consequence of having focused too much on volume… and that has led to the deterioration of the brand values.”

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