Heineken axes Czech plant

More than a century of brewing ends

Falling demand for beer in the Czech Republic has led Heineken to axe one of its breweries in the country at the cost of 59 jobs.

Production and kegging is set to cease at the Louny brewery, acquired by Heineken in its 2008 buyout of Czech firm Drinks Union, and the site will be converted into a distribution centre. Heineken said the facility was “outdated”.

“The proposal to transfer the production from the Louny Brewery isn’t a decision we have taken lightly,” said regional general manager Lieven Van der Borght.

“It affects some of our Louny employees who have all exhibited a very professional and positive approach to the merger after the Drinks Union acquisition. We’ll do all we can to mitigate the effects of the closure on the people affected in months to come.”

A total of 29 people will be out of work by the end of the month as a result of the closure. A further 30 will be made unemployed in phases over the coming months. 13 will be offered work elsewhere in Heineken’s Czech operations.

The Louny brands have been brewed in the town, some 30 miles northwest of Prague, since 1892. Heineken said the brands will continue to be produced elsewhere in the country, to the same recipe.