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UK: The world's biggest brewer by volume, InBev has clashed with Britain's biggest trade union and one of its proudest cities over plans to close the historic beer maker, Boddingtons brewery in Manchester, Reuters said on October 26. InBev plans to close the historic brewery by 2005 and move production elsewhere, with the loss of 55 jobs. InBev says the Boddingtons brewery is old, inflexible and in decline, and production must be moved to another local site.

But the Transport and General Workers' Union (T&G) has voted for a 48-hour strike at the factory from November 1, and Manchester City Council has thrown its weight behind the "Save The Cream" campaign.

Boddingtons ale is known as "The Cream of Manchester" for its smooth taste and creamy head.

The clash is typical of the sector, where small breweries feel themselves pitted against global corporations and the forces of globalisation. "It's an emotional case, but the business case is irrefutable," said a spokesman for InBev, which was formed from the merger of Belgium's Interbrew with Brazil's AmBev earlier this year. "It's an inflexible, old cask ale brewery. The tide is that cask ale is declining, and we can't fight that."

But the union argues that the brewery contributed 16.5 million pounds to InBev's profits last year and sales are still growing. It accused InBev of "cynical corporate greed". "There's no disguising the anger and sense of betrayal at the brewery," said T&G organiser Franny Joyce on Tuesday.

"It is the workforce who have developed this brand and the success of this brewery and they now face their jobs being taken away while the owners cry crocodile tears," he added.

Last month workers staged a 24-hour unofficial strike in protest at the plans and earlier this month Manchester based MEP Arlene McCarthy called on Interbrew to review its decision.

InBev says Boddingtons ale is still profitable, although not as profitable as its other brands. The Manchester site is incapable of putting the ale in cans or kegs, and money is wasted transporting 90 percent of it off site for canning, it says. Manchester City Council hit out at rumours InBev was hoping to sell the land to property developers. "Boddingtons has helped promote Manchester around the world," said a spokesman. "If InBev think they can sell off the land, that's not going to happen." InBev said it was nowhere near deciding what to do with the site.


27 October, 2004