Drinks Makers C&C Confirm Plans to Close Bulmers Cider Plants
Jan 13 2016 --- Over 100 jobs are set to be lost after C&C closes its bottling facility in Borrisoleigh, Co Tipperary, Ireland and in Shepton Mallet, Somerset, England. The company, whose brands include Bulmers and Magners cider, will instead consolidate production at its site in Clonmel, Co Tipperary.
C&C plan to invest over $10m in making the Clonmel plant the core production facility for cider making.
C&C will continue to pulp fruit at the Shepton Mallet plant, but it will then ship the pulp to Clonmel, where all its cider will be produced. This indicates it will continue to buy apples from farmers in Somerset.
Siptu organiser Terry Bryan said union members were in shock after management called workers into a meeting in Borrisoleigh yesterday to tell them the plant was to close.
"The aim for Siptu representatives will be to prevent as many job losses as possible," he said.
"The aim for Siptu representatives will be to prevent as many job losses as possible," he said.
A troubled investment in a US cider manufacturer has drained cash from C&C and shareholders have been urging the company to move from marketing cider in England to concentrate on stronger markets in Scotland and Ireland.
Its decision to close Borrisoleigh stems partly from the loss last year of contracts to bottle own-brand mineral water for retailer Dunnes Stores and another unnamed supermarket chain.
C&C’s statement cites the loss of “material contracts for private-label water” as one of the factors behind its decision to close the Tipperary plant, although it does not name either Dunnes or the other former customer.
The loss of both deals cut demand significantly at Borrisoleigh, which C&C acquired when it bought Tipperary Water and Finches soft drinks producer M&J Gleeson for €12.4 million in 2014.
Bryan and other representatives are due to meet management today to establish what options are open to workers.
Bryan and other representatives are due to meet management today to establish what options are open to workers.
It is not entirely clear whether those losing their jobs in the other plants would be offered redeployment, although employment law might require the company to offer Shepton Mallet staff jobs in Ireland.
Sector organiser John Dunne said the company had indicated it could redeploy staff from Borrisoleigh to Clonmel.“They are saying it could be open to people to transfer.”
He said as the two locations are about 35 miles apart it may suit some workers but not others.
by Elizabeth Kenward
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