[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 20 February 2007, 10:11 GMT
Brewer plans 50m savings drive
Beer pumps and pint of lager

The UK's biggest brewer, Scottish & Newcastle, has announced it is looking to make 50m of cost savings over the next three years.

The firm - whose brands include Fosters, Strongbow and Kronenbourg - employs 4,500 people but gave no details of possible job cuts.

It said it aimed to make the savings by being more efficient in producing and distributing its products.

The proposals came as it announced 2006 pre-tax profits were up 14% to 452m.

Scottish & Newcastle's (S&N's) annual sales rose 7% to 4.15bn.

Options

S&N also said that the smoking ban in England and Wales - due to come into force in the summer - would hit sales and predicted 2007 profits would lose 10m because of the ban.

The brewer said it was yet to finalise where the proposed savings would be made.

"We are looking at a number of options," said finance director Ian McHoul.

"They may involve job reductions but where they do, our people will be the first to know."

S&N's shares closed down 4% on Tuesday.


SEE ALSO
S&N warns of smoking ban effects
07 Nov 06 |  Business
Brewer S&N toasts rise in profits
08 Aug 06 |  Business
Brewer calls time on free pension
19 Jan 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific