Constellation to shed UK jobs

Published: 16 December, 2008

Constellation Europe has blamed the latest round of duty increases for redundancies at its UK base - and warns more may follow if the Chancellor hikes up wine prices still further.

A company spokeswoman confirmed this week: "Constellation Europe has been affected, like the rest of the trade, by the general economic downturn and the Government's duty rise of 17% this year alone.

"Fifty employees will be made redundant as a direct effect of the government's latest duty increase. This will primarily affect the back office, with minimal changes to customer facing staff."

Constellation is not alone among UK-based wine companies in shedding jobs, the spokeswoman added.

In an interview with the Times, Constellation Europe president Troy Christensen said the Hardys and Banrock Station supplier could be forced to downscale its activity in the UK market.

"If there's another duty increase, then the only thing you can do is reduce your local investment even further," he warned.

"We are a global company and we tend to put investment in countries that produce the best returns. At the moment, there are a lot better opportunities elsewhere in Europe."

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