The decision confirms rumours that have been circulating since November, when plans were announced for restructuring in Central Europe. Despite attempts by the company to quell speculation, rumours were rife that a round of cuts in Western Europe would follow.
Unions feared that depots – five in Flanders and two in Wallonia – would be hit, reflecting changes in distribution as a result of a growing tendency for people to drink less beer, especially in cafes. This trend has been exacerbated with the introduction on 1 January of a stricter ban on smoking in cafes. Since 1982, average annual per capita beer consumption in Belgium has fallen from 99 litres to 82 litres. At the same time, consumption has moved from pils to speciality beers.
The restructuring of AB InBev is all the more important to the company because of the acquisition of Anheuser-Busch, the largest American brewer, just before the global economic crisis broke in 2008, at a price of €36 billion. The acquisition, which made AB InBev the largest brewer in the world, had adequate financing, but still obliged InBev to undertake a round of severe cuts.
The result is a loss of 263 jobs in Belgium, or about one job in 10. The aim, the company said, is a “streamlined, flexible and commercially focused local organisation”. On the production level, efficiency measures could cost 114 jobs. In sales, despite pressure on CEO Carlos Brito to deliver “top-line growth” – in other words, to sell more beer – a further 189 jobs are on the line. On the other hand, a telesales unit and a customer service operation will provide 40 new jobs, bringing the net loss to 263.
Unions responded with lightning actions in protest. Pickets blockaded the entrance to the company’s plant in Leuven in an action that was expected to continue until Tuesday of this week, after Flanders Today went to press. Two of the three brewing kettles were disconnected, bringing capacity down to 30%. Unions said they expected the next move to come from negotiations with management.