To improve efficiency and remain competitive in the current challenging beverage market, Hartwall plans to close the Tornio brewery and to consolidate production to its Lahti site. To better meet the present customer needs, a plan has been made to reorganise the sales operations. Furthermore, in order to meet the increased consumer demand for cans, Hartwall will invest in a new canning line at the Lahti plant.
The current market environment with increased price competition, rising alcohol taxation, declining beverage market, suggested tax increase on carbonated soft drinks and increased passenger imports put significant pressure on beverage business. At the same time, the off-trade market structure has changed due to a continued centralization in off-trade purchasing. Furthermore, especially in the on-trade sector, sales have declined.
As a result, Hartwall starts employee consultation negotiations with all its 100 employees at the Tornio brewery. In addition, Hartwall starts negotiations with its employees in all sales functions across the country with an estimated number of redundancies of 30. No other functions are involved. The negotiations process will take 6-7 weeks.
Managing Director of Hartwall, Jan-Kees Nieman, says: “This has been a very difficult decision for Hartwall. The Tornio brewery has a long and proud history. However, retaining two breweries is cost and efficiency wise no longer an option and therefore, the planned loss of jobs is unfortunately unavoidable. We also need to restructure sales to better meet present customer needs. We will put great effort in helping to find alternative employment for all staff leaving the company. In addition, 20 new jobs that will be created at the Lahti site will firstly be offered to leaving staff."
According to plan, the new sales organisation will be in place January 1 2010 at the latest, and the Tornio brewery will be closed in September 2010. From then on, all Hartwall's production will be concentrated in the Lahti site. The spring water bottling plant remains in Karijoki.
Investment will create new jobs in Lahti
To meet the increased demand for can as beverage package and to prepare for the future, Hartwall plans to invest in a new canning line in the Lahti plant. According to plan, up to 20 new jobs in production will be created in Lahti, to be offered first to leaving staff. The new line is planned to be up and running in June 2010. The investment plan is part of the employee consultation negotiations.
Hartwall opened its Lahti state-of-the-art production and logistics centre in 2003. Still to date, it is the largest-ever capital investment in the Finnish food industry and since the opening, Hartwall has continuously invested in the site. Lahti site is centrally located in the heart of the main market.
Interview requests:
Hartwall Ltd
Communications Manager
Tuija Kleimola
Tel. +358 20 717 2595
tuija.kleimola@hartwall.fi
Hartwall is the leader in innovation in the beverage industry in Finland and a company with strong brands. Hartwall’s product range comprises beers, ciders and long drinks, bottled waters, soft drinks, new speciality drinks as well as hundreds of wines and other alcoholic beverages supplied through its subsidiary Hartwa-Trade. The company’s best-known brands include Hartwall Jaffa soft drinks, Hartwall Novelle mineral waters, Upcider ciders, Hartwall Original Gin Long Drink as well as Lapin Kulta, Karjala, Foster's and Heineken beers. Hartwall employs around 1,000 people. Hartwall is member of Heineken International that is Europe’s largest brewer and the world’s third largest by volume.
Hartwall Lahti is a state-of the-art production and logistics facility completed in 2003. It is the largest investment ever made in the food and drink industry in Finland. Hartwall Lahti manufactures all types of beverages, from mineral waters and soft drinks to beers and ciders. Hartwall Lahti is a highly automated, flexible, cost-effective and environmentally friendly plant.