E-Malt.com News article: Australia: Foster’s make redundant 50 workers at Abbotsford brewery to improve its financial performance

Australia’s No. 1 brewer Foster's will make as many as 50 workers redundant at its flagship Abbotsford brewery as part as a streamlining move following the historic demerger of its wine business earlier this month, The Sydney Morning Herald reported on May, 18.

It is believed staff at the Abbotsford site in Melbourne were told of the redundancy program in the morning of May, 18. The brewery employs more than 300 people, prior to the potential cuts, the newspaper said.

Foster's shares were recently trading up 3 cents for the day, or 0.7 per cent, at A$4.29.

The reduction in staff levels is part of a wider strategy by new Foster's chief executive John Pollaers to improve the financial performance of the beer company following its recent split with wine.

Beer volumes have come under pressure recently following wet weather conditions across Australia's eastern states and a general downturn in the consumption of beer compared with other drinks.

Even with beer, Foster's has had to cope with a drift away from traditional brands, such as VB brand, towards craft beers and ciders.

Voluntary redundancies will begin this month and will include capital improvements over the next 12 months.

Workers who take a package will be provided with outplacement support, including counselling and external job search assistance, the company said.

As part of the demerger process, Foster’s new management team has unveiled an ‘‘urgent agenda’’ strategy to stabilise the beer business and rebuild sales momentum.

One of its key targets is to cut costs and bring the company in line with its global brewer competitors.


18 May, 2011