Scottish & Newcastle Mulling Over Sale of its Champigneulles Brewery
French unit Brasseries Kronenbourg is dealing with private German brewer Frankfurter Brauhaus over the sale of the brewery near Nancy, north-east France.
11/07/06 Scottish & Newcastle Plc, Britain's largest brewer, enters an exclusive talks over the sale of its Champigneulles brewery, this will focus its French operations on just one brewery, if successful.
French unit Brasseries Kronenbourg was dealing with with private German brewer Frankfurter Brauhaus over the sale of the brewery near Nancy, north-east France, by the end of August, the talks are expected to be concluded, said S&N.
The sale and cost savings from moving production to its Obernai brewery near Strasbourg will save 20 million euros ($25.6 million) a year by 2008, although the UK brewer gave no sale price. Then, from just one brewery, S&N will supply around 40 percent of the country’s beer.
S&N expects that there will be no compulsory redundancies as some staff will transfer to Obernai and the German brewer plans to retain up to 100 staff at the Champigneulles site.
The sale of the brewery will cut S&N's private-label production in France to low levels as the Obernai brewery focuses on branded beers like Kronenbourg and Kronenbourg 1664.
