Carlsberg UK has commenced a transformation programme across its business in order to create an agile organisation and deliver long-term profitability.
The company plans to restructure its commercial organisation, in order to give greater focus to its brands and shift focus to drive value. Part of the changes include proposals to reduce the size of its production team within its Northampton brewery to meet future volume requirements, and the commencement of a formal review of its customer supply chain operations.
This work has started and employees have been notified of the proposed changes within its Northampton brewery, Leeds office and 12 regional customer distribution depots.
The transformation programme is being led by Interim Chief Executive Officer Michiel J. Herkemij and delivered by the UK Executive team.
Herkemij commented: “One of the biggest challenges in the UK beer market is significant over capacity, driving short-term behaviour in the market place. By making these proposed changes, we can control costs and build our brands and drinks portfolio. Removing the pressure to solely focus on volume will drive greater value for our business and for our customers.
“Unfortunately the proposed restructuring process may result in redundancies in some areas of the business and we will support the impacted employees through the consultation period.
“By making these changes we will ensure the best possible future for our business. We will be agile and responsive and play a better role in brewing and wholesaling, now and in the longer-term.”
Herkemij, has extensive senior leadership experience in transforming companies around the world. His most recent assignments include CEO roles within British American Tobacco, Sara Lee and Heineken, working across several European countries including the UK, as well as in China, Nigeria and Mexico.
Carlsberg UK currently has around a 13% share of the UK beer market through brands including Carlsberg, Carlsberg Export, Tuborg, Tetley’s and Somersby Cider as well as having the UK license for San Miguel and Mahou. This year the Carlsberg beer brand has invested in engaging consumers through its iconic ‘Probably’ advertising campaign and its position as the Official Beer of the Premier League, Official Beer of the England football team, and looking to next year, the Official Beer of UEFA EURO 2016.