Coca-Cola considers outsourcing project

COCA-COLA HAS warned that up to 130 jobs in its Irish bottling and distribution business are under threat as it seeks to reduce…

COCA-COLA HAS warned that up to 130 jobs in its Irish bottling and distribution business are under threat as it seeks to reduce its cost base in the Republic.

In a statement issued yesterday, Coca-Cola HBC Ireland said that a review of its logistics infrastructure found the operational cost of the current system to be “exceptionally high when measured against the industry in Ireland and other comparable countries within the Coca-Cola Hellenic Group.

“This cost base is not sustainable and decisive action is needed in the interests of the future viability of the business,” the company said, adding that the most viable solution would be to outsource to an Irish provider.

If the company decides to take this course of action, it will result in the closure of its warehousing and distribution in the Republic.

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Approximately 130 employees based in Dublin, Cork, Tuam, Tipperary, Waterford and Killarney will lose their jobs.

“The company recognises that this is very difficult news for the employees potentially affected and is committed to engage in a transparent and meaningful consultation process,” it said.

A spokesman for the company said that employees were briefed on this development yesterday afternoon, but said that the company was open to any alternative solutions that staff members may suggest during the consultation process.

Coca-Cola has been carrying out bottling and distribution activities in Ireland for more than 50 years. It employs 1,250 people in its bottling operations in the Republic and Northern Ireland.

In 2008, the company opened a new all-Ireland manufacturing plant in Lisburn, Co Antrim, which involved an investment of €130 million.

It also built new office facilities in Huntstown in Dublin.