Diageo confirms redundancies at Oz rum plant

A number of employees at Diageo’s Bundaberg Rum distillery in Australia will be made redundant as the company struggles with financial pressures.

A number of employees at Diageo’s Bundaberg rum distillery are to be made redundant

Following a recent review of its operations in Australia, Diageo decided to move the majority of its bottling operations for its Bundaberg rum brand from Bundaberg, Queensland, to a different plant in Sydney.

The move comes as Diageo reveals it is experiencing “continued pressure” from lower alcohol consumption and “punitive excise tax” on spirits and RTDs, which has seen volumes decline “significantly” in recent years.

Taxation on spirits in Australia is among some of the highest in the world, at nearly 50%.

Furthermore, Diageo also recently revealed that it planned to save £200 million annually by June 2017 by “de-laying” its business.

Bundaberg rum will continue to be distilled at the Bundaberg Distilling Company, which has been in operation for 125 years, but only its premium expressions will continue to be bottled there.

The majority of Bundaberg rum will now be bottled at Huntingwood, in Western Sydney.

Around 10 distillery employees are expected to be made redundant, while more in corporate and head office roles face also losing their jobs.

Diageo said these changes aimed to “deliver greater efficiency with a simpler structure and a more sustainable cost base”.

“Our people are our number one priority and we will support them throughout this change,” a spokesperson for the company said.

“This was not a decision we have taken lightly, however it is a necessary one to ensure the longer term sustainability of the distillery.

“We remain absolutely committed to Bundaberg and the distillery and will continue to invest and focus on our core business of distilling, maturing and blending great quality rum in Bundaberg as we have done for the last 125 years.”