Bulmers is to close its bottling line in Plough Lane, Hereford, which could lead to the loss of 54 jobs by March 2009.
The blow comes after a detailed review of operations by owners S&N UK, which is now part of the Heineken empire. Employees were briefed yesterday morning (Tuesday) that the bottling line, which was recommissioned in July 2007, would fall victim to the current economic climate.
The company, one of the biggest employers in the county, says it is looking to redeploy and retrain some of those affected in other areas but will be asking for some voluntary redundancies. The lowest UK beer market sales and unprecedented rises in costs have been blamed for the decision.
Most of the cider that Bulmers makes in Hereford is either in cans or kegs and will not be affected by the changes.
Harry Turner, cider communications manager, said: “The impact of the smoking ban, a series of duty rises and the current market conditions, have had a significant impact on demand for our premium bottled beers and ciders, particularly in pubs and clubs across the UK.
“Within S&N UK we have a significant over- capacity in bottling, so in early December we announced a review of those operations at Hereford and Tadcaster.
“Those employees who are affected will now enter a consultation process in which all options will be examined; including redeployment across other sites within the group, voluntary redundancy, outplacement and retraining.”