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August 06, 2007
Molson Closes Brewery Due to Strike
Molson Canada is set to close one of its breweries in the country.
The Canadian arm of Molson Coors confirmed last Tuesday, July 31, 2007, that the Edmonton brewery, located in the state of Alberta, will close at the end of this month, leading to the loss of 136 employees. The site, which is a bottling facility, has been at the centre of a strike by workers since May. Molson conceded that the strike had contributed to its decision to close the facility.
"Clearly, the two business conditions with the greatest influence (on the decision to close the site) were the loss of the Foster's contract to the US and the on-going shift in the marketplace from bottles to cans," said Kevin Boyce, Molson Canada's president and CEO.
"Another key element in the closure decision was the competitive need to reduce future operating costs. The current labour impasse, after months of negotiating, at the Edmonton brewery to reduce costs for new hire employees was a contributing factor to the decision."
The Edmonton site has no expansion capability, Molson said. "This limited expansion capability, combined with the business conditions noted above, have impacted the Molson supply chain making the efficient utilisation of the Canadian brewery network more critical to meeting customer expectations," the company said.
Employees have already been informed of the decision, and the company said it is looking to provide fair separation packages. The brewer said it will record a non-cash impairment charge of about $37m before taxes associated with the change.
About Molson Coors:
Molson Coors Brewing Company is the world's fifth-largest global brewer, with pro-forma combined annual volume of 60 million hectoliters and net sales of more than US$6 billion. Molson Coors has a leading market share in Canada and in the UK, a growth profile in the U.S. and an emerging market opportunity in Brazil.
The company was the result of a merger between the two North Americna brewer Molson and Adolph Coors.
Molson Coors Brewing Company has 15,000 employees worldwide, 18 breweries, and a broad portfolio of over 40 brands, including Molson Canadian, Coors Light and Carlin
Edmonton, Alberta, CAN–August 5, 2007
Posted by fortna at August 6, 2007 07:07 AM
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Comments
Please note that the brewery to be closed in Edmonton is in the Province of Alberta, not the State of Alberta. Canada is comprised of Provinces, NOT States. Also, the closing of the brewery will lead to the loss of 136 jobs, not a loss of the employees. These 136 people are still very much alive.
Bob McColl
Posted by: Editor at August 8, 2007 03:05 AM
Dooley noted, Bob
Posted by: Editor at August 8, 2007 03:08 AM