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C&C Group To Close Two Production Facilities

Published on Jan 12 2016 7:16 AM in Drinks tagged: Featured Post / cider / Drinks / C&C Group

C&C Group To Close Two Production Facilities

Cider maker C&C has confirmed its plans to close its production facilities in Shepton Mallet (England) and Borrisoleigh (Ireland), and to consolidate production at its Clonmel manufacturing site.

In a statement today (January 12), the drinks company explained that an intensely competitive trading environment in the UK and Ireland has led to significant downward pricing pressure, as well as the loss of material contracts for private label water.

The current capacity utilisation rates across the three impacted sites stands at 34%, which C&C says is constraining its ability to compete over the longer term. The planned changes will mean that the Clonmel facility will move to a capacity utilisation level of 75%.

The Irish Times  reported that some 260 jobs could be effected by the closures, which are scheduled for July, quoting sources close to the company. However, the company's statement says the number of jobs that will be lost is estimated to be 180.

C&C added that the fruit milling facility at Shepton Mallet would not be affected, and that logistics and warehousing operations would remain in Borrisoleigh.

Its Borrisoleigh plant is currently used as a water-bottling facility, while Shepton Mallet is used for cider making.

Last month, C&C Group announced that it has signed a distribution deal with US brewer Pabst, which will see its products be distributed across the US.

© 2016 - Checkout Magazine by Stephen Wynne-Jones

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