St Austell Brewery has said it will be “reviewing its operational structure” as new employment costs place “significant additional financial strain on the 174-year-old company”.
It has placed some of its workforce into collective consultation and will be reviewing its operational structure, seeking to reduce up to 40 roles through redundancy.
In a letter to St Austell Brewery’s 2,000-strong workforce, chief executive Kevin Georgel wrote that the company was having to take “difficult, but necessary steps” to secure its future success.
The independent and family-owned company operates more than 160 pubs across the south west, including managed houses and tenancies. It also operates two breweries, in St Austell and Warmley, Gloucestershire, and is a wholesale drinks distributor, with six depots across the West Country.
“We have this week communicated to our teams that we will be entering into a 30-day period of collective consultation,” said Georgel.
“The process will involve us consulting with team members across multiple departments and may result in a reduction of up to 40 roles through redundancy.”
St Austell Brewery’s managed pub teams were not included in the consultation process, Georgel confirmed.
“The brewing and hospitality sector has had an extraordinarily difficult few years – one of the most challenging periods in our 174-year history,” he added.
“We have successfully navigated these challenges, but they have been compounded by the significant increases in National Insurance announced in the autumn budget, which are effective from April.
“The additional cost of employment amounts to a further £3m a year and it is not realistic, nor appropriate, to presume that we can pass on all the increased costs on to our guests or customers.
“The decision to explore potential redundancies is not one that has been taken lightly. The proposed changes reflect a considered and measured response to the challenges we face and will help ensure that the business remains fit for the future.”
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