Sector News

Heineken South Africa to cut jobs due to alcohol ban impact

January 23, 2021
Food & Drink

Heineken has announced that it will cut 70 jobs and put investments on hold in South Africa, following the impact of alcohol bans amid the Covid-19 pandemic, according to Reuters.

The brewer’s South African arm says there has been significant impact from bans on alcohol sales and Covid-19 trading restrictions. At the end of December, the country banned alcohol sales for the third time to help reduce the pressure on emergency services.

According to Reuters, about 30% of local breweries have been forced to shut their doors permanently and some have abandoned planned investments. Several publications have reported that Heineken marks the first major company to make significant cuts as a result of the alcohol bans.

With just under 1,000 full-time employees at Heineken South Africa, 70 will lose their jobs as the brewer looks to restructure its operations to build a future for the business.

The news comes after Heineken announced in October that it will cut jobs at its head and regional offices in 2021, despite beer volume sales improving in the third quarter, relative to Q2. The South African market had been mentioned within previous financial results with references to poor beer volumes amid lockdown restrictions.

“Prior to considering this action, the company implemented various cost mitigation measures throughout 2020,” said Heineken South Africa human resources director, Yvonne Mosadi, as cited by Reuters.

“Unfortunately, given the ongoing challenging situation the company finds itself in, these measures are no longer adequate to manage and sustain the operating costs of the business.”

Last year, Heineken South African cancelled plans to build a ZAR 6 billion ($403 million) brewery in KwaZulu-Natal after a second ban on alcohol sales was announced.

Reuters reported that Heineken said other new investments will also be placed on hold. The owner of the Amstel and Sol brands will continue to review its cost and organisational structure to meet future needs of the business.

by Emma Upshall

Source: foodbev.com

comments closed

Related News

October 17, 2021

France to ban plastic packaging for fruit and vegetables

Food & Drink

The government has published a list of around 30 fruits and vegetables that will be subject to the plastic packaging ban coming into effect on 1 January 2022. The list includes courgettes, aubergines and cucumbers, as well as apples, oranges and pears.

October 17, 2021

Kraft Heinz unveils plans for a circular PET ketchup bottle

Food & Drink

Kraft Heinz has detailed plans to release a circular PET tomato ketchup bottle by 2022 in its latest Environmental Social Governance report. The company has made progress towards its aim of using 100% recyclable, reusable or compostable packaging by 2025.

October 17, 2021

Beverages category fizzes with AI-generated soda, hemp-based gin, “green” cola & coca leaf infusions

Food & Drink

The drinks category is brimming with trend-driven launches including flavorful, energizing and better-for-you beverages. FoodIngredientsFirst speaks to disruptive fizzy beverage brands, whose offerings include a classic cola recipe reimagined with a clean label twist, as well as AI-generated flavor synergies.

Send this to a friend