Heineken and Diageo show interest in Clonmel plant

Bulmers and Magners cider maker C&C is in discussions with Diageo and Heineken to take over the bottling of some of their beers at its Annerville, Clonmel plant, The Nationalist understands.

Bulmers and Magners cider maker C&C is in discussions with Diageo and Heineken to take over the bottling of some of their beers at its Annerville, Clonmel plant, The Nationalist understands.

However a spokesperson for C&C has stated that the company wouldn't comment on the speculation.

Diageo has stated that it uses C&C for bottling from time to time when its at full capacity.

The Clonmel plant is understood to have the capacity to produce 5 million hectolitres of drink but currently produces only 1.5 million hectolitres.

C&C reported six-month sales of €305 million in October and has forecast full year profits of about €106 million for the year to the end of February.

In October Bulmers announced a cost reduction and re-organisation programme, which required up to 50 redundancies in Clonmel.

It blamed a dramatically weakening consumer environment, as well as the continued migration of cider volumes from the on to off trade (i.e. from pubs to supermarkets and off licences), for the job losses.

Bulmers General Manager Paul O'Sullivan said the company was taking corrective action to improve its competitiveness and secure the remaining 220 jobs in Clonmel. He believed that the restructuring programme would put the Bulmers business on a much stronger footing to develop and prosper in the years ahead.

Following meetings with company management at that time Dr. Sean McCarthy, the chairman of South Tipp County Council, said Bulmers had given a long-term commitment to Clonmel.