E-Malt.com News article: Canada, NB: Moosehead Breweries to lay off some office employees

Moosehead Breweries Ltd. is laying off some of its office staff, citing major changes to a contract between the brewery and a large international brewer, New Brunswick Business Journal reported on November, 5.

Moosehead said in a statement on November, 4 it has held the contract with the brewer since 2004, brewing and packaging a number of international brands for import into the United States.
That brewer - unnamed in the release - recently told Moosehead its contract may not be renewed, or revenue could be substantially reduced, because of the "economic conditions created by the strong Canadian dollar."

"This will force Moosehead to lay off a number of its Saint John head office employees," the company said. "The exact numbers will be announced in the near future."

Moosehead president Andrew Oland said he wants to assure employees in Saint John the layoffs aren't related to the quality of their work.

"Unfortunately, like many other Canadian companies, Moosehead is not immune to changes in the global marketplace," Oland said.

In late 2003, Moosehead announced it had signed a contract with Danish brewing giant Carlsberg Breweries AS.

On Jan. 14, 2004, Carlsberg terminated its 15-year brewing and distribution deal with Labatt Breweries of Canada, instead giving Moosehead the nod to brew its Carlsberg and Carlsberg Light brands.

Moosehead is working on a C$20-mln expansion to its Saint John brewery. The company is adding a 40-foot-by-135-foot (12.2-metre-by-41.1-metre) wing to accommodate new labelling equipment, packaging and inspection equipment, as well as new conveyors.

Jeff Stoddard, president of the Brewer Workers Union Local 362 that represents about 160 full-time Moosehead workers, said he doesn't have details of the administrative layoffs or the brewing contract changes.

"Our numbers in employment are driven by volume," he said.

"And if we lost volume, obviously, it we would be subject to some man-hours lost."

The plant expansion and improved efficiencies could affect unionized workers, Stoddard said, though he hasn't heard anything from the company.

"We have people that can retire in the next few years. We're hoping that if there are job losses on our side that they'll equal out with retirements," he said.

"But it's hard to say."

It's been a tough few months for beer sales in New Brunswick and the rest of Atlantic Canada, with the industry hampered by one of the wettest summers in recent memory.


10 November, 2011