Castel Group of France which has agreed to buy 59 percent share of Danish brewer stake in Carlsberg Malawi Limited is set to make a number of job cuts as the company aims to secure sustainable and profitable growth for the future.
Danish brewer Carlsberg said on Wednesday the sale is in line with Carlsberg’s strategy to fully exploit and leverage its strengths while positioning itself for future growth.
Nyasa Times understands that a French beverage company wants redundancies with an aim of creating long-term value to Carlsberg Malawi an associated company with dual-listed conglomerate Press Corporation Limited (PCL).
While the exact number hasn’t been revealed, cuts are expected through the brewer to impact up to 10 percent of the workforce.
Several longtime company executives could be affected.
Carlsberg Malawi chairperson, Mathews Chikaonda, who is also out going Press Corp CEO said the transaction is in line with Carlsberg Group’s new strategy to “fully exploit and leverage its strengths while positioning itself for future growth.”
Chikaonda said Castel Group will continue to produce Carlsberg beers to the people of Malawi.
He said the consumer market will not notice any change for the next 10 years as the portfolio will remain the same.
Carlsberg did not disclose financial details but Chikaonda said Press Corp will remain “a significant shareholder” in Carlsberg Malawi.
Chikaonda said the move by Castle to buy shares in Carlsberg “sends a powerful signal that Malawi is still a good investment destination.”
He said: “Given Castle’s extensive etwork in Africa, the move by Castle into Malawi provides Cralsberg Malawi great potential toe xport into neighbouring countries and beyond thereby affording Malawi the much-needed opportunity to diversity its foreign echange earning base.”
Chikaonda added: “ The Castle Group should be welcomed with open arms as it is hard to imagine what would have happened if there was no buyer for the hsares of Cralsberg Brewries A/S.”
According to the Castel Group website, the company was founded in Bordeaux in 1949 by a family of 9 brothers and sisters. For over 60 years they have devoted their energy and skills to spreading the word about French wines throughout the world, and developing the beer and soft drinks sector in Africa.
The family have had their fair share of triumphs. Under the guiding hand of founding President Pierre Castel the Group has become the largest wine producer in France and Europe, and the second largest beer and soft drinks business in Africa
Castel is an internationally recognised name, backed up by a range of acclaimed brands and Châteaux, and with an established presence in over 130 countries.Follow and Subscribe Nyasa TV :