Protests tighten grip on A-B InBev

Belgian production slowing

Protests against A-B InBev’s decision to axe up to 10% of its Western European workforce could bring the giant’s Belgian business to its knees if a resolution is not found in the next few days.  

Protesters have been blocking access to the firm’s Leuven and Jupiler facilities since Thursday after 263 job cuts were announced in Belgium. A total of 800 jobs are hanging in the balance across Western Europe.  

“Up until now our production activities have kept on going, though increasingly at a slower pace,” A-B InBev spokeswoman Karen Couck told BG today, adding that a meeting between management and workers is scheduled for Thursday. 

“Now we’re in a situation where we might run out of raw materials or packaging materials. Our warehouses are full so we’re starting to see an impact. Beer is not being shipped out. We hope to reach a solution as soon as possible.” 

As part of the plan, A-B InBev will shift production of the Diekirch brand – marketed as having been “brewed since 1871 in the green valleys of Diekrirch” – from Luxembourg to Belgium. The closure is the only one planned at present, said Couck.

A-B InBev is carrying out market-by-market analysis of its Western European operations, as demand for beer continues to decline. The firm expects to shed one in 10 of its 8,000-strong Western European workforce in markets such as Germany, the UK and the Netherlands.

In Belgium, A-B InBev said its focus is on optimising sales and support activities to adapt to declining volumes and changing consumer demand. Between 2000 and 2008, the Belgian beer market shrank by 20%.