Irish Distillers will close a Cork bottling plant with the loss of 28 jobs, blaming Government policy for falling spirit sales.
The North Mall plant has fallen victim to declining spirit sales and the loss of a contract from C&C for the bottling of Tullamore Dew. Staff at the plant were informed of the decision yesterday afternoon.
"Following the 42 per cent excise duty increase imposed on spirits in the 2003 budget, year-on-year spirit sales in the domestic market are down 20 per cent," a spokesman for Irish Distillers said. "For Irish Distillers, domestic sales of Irish whiskey are down by 16 per cent and gin sales are down by 14 per cent."
Mr Richard Burrows, joint managing director of Pernod Ricard, Irish Distillers parent company, said the contract loss was a one-off factor. However, he said the rise in excise duty "was undoubtedly the major contributory factor".
Where possible, staff at North Mall would be offered the chance to fill vacancies in Midleton and Dublin.
"However, most of the 28 jobs will be lost to early retirement and redundancy. In the situation we had no other option but to close the plant," Mr Burrows said.
The news came as Pernod Ricard announced 8.1 per cent growth in group sales of wine and spirits before allowing for the negative impact of currency movements. Mr Patrick Ricard, chairman and chief executive, said full-year results, to be announced in mid-March, would be ahead of previous guidance. "Despite unfavourable currency effects, we anticipate a growth of our profit before tax and exceptional items of around 5 per cent."
Mr Burrows said that, outside Ireland, the group had quite a positive performance. Non-domestic sales of Jameson were up 11 per cent and Bushmills sales outside Ireland also rose, with the US proving particularly positive for both brands. Jameson saw US sales grow 18 per cent. The US is now the largest single market for Jameson, which is one of the top five Pernod Ricard brands.
After the North Mall plant closure, Irish Distillers will employ about 700 people, including 329 on the production side at Midleton, Co Cork and Bushmills, Co Antrim.
