S&N to implement reorganization at Kronenbourg

17/02/06 Brasseries Kronenbourg, the French subsidiary of Scottish & Newcastle plc, has today begun consultation with its workforce over the proposed restructuring of its brewing business.

The project includes the proposed sale of Champigneulles brewery near Nancy and a focus on premium brands and operations at Obernai brewery near Strasbourg.

Last summer S&N, which produces Kronenbourg, Foster's and Newcastle Brown Ale singled out France as suffering most acutely from declining consumer confidence and weak economic conditions. But it expects relaxation in retail pricing regulations, introduced last month, to spur a sales volumes recovery.

The company has recently closed two of its most iconic breweries, in Newcastle and Edinburgh, as part of a cost-cutting programme.
S & N said an update on the consultation process for Kronenbourg will be provided in due course.