If Carlsberg closed breweries…

Posted on 5 Nov 2008 by The Manufacturer

Danish-based beer-maker the Carlsberg Group has announced it will close its brewery in Leeds, bringing almost 200 years of production at the site to an end and putting 170 people out of a job.

The company, which makes Carlsberg, Carlsberg Export and Carlsberg Elephant, said “it can no longer justify running two major breweries in the UK.” It will close the brewery in 2011. Its other is in Northampton.

Tetley beers are also brewed at the site in Leeds which has been producing since 1822.

The closure news came alongside financial reports from the first nine months of the year which revealed organic beer volume growth totaling four per cent owing to growing demand in Eastern European and parts of Asia.

This situation is not mirrored here in the UK where it is estimated that five pubs are closing every day.

Nick Webb, Supply Chain Director of Carlsberg UK, said: “We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future. We have to consider difficult decisions to remain competitive in the current environment and we regret the risk to the jobs of our employees. Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future.”

Tim Roache of the GMB union, representing the employees, said: “This is very disappointing news. We will be seeking talks with Carlsberg to see if there is anything that can be done to change their minds about closing this historic brewery”.

Carlsberg said it will help the affected staff find new jobs and will look into the feasibility of redeploying some in other areas of the company.

The group currently employs 33,000 people globally and is the fifth largest brewer in the world.