While some companies highlight that they’re stepping in to safeguard the future of popular brands, livelihoods are also at stake. The trade press tends to avoid looking at how many jobs may be lost from a company takeover, focusing instead on aiming to publish that all-important financial statistic: how much the company was snapped up for.
Just over a week ago, Highland Spring acquired Scottish rival The Speyside Glenlivet Water Company, which went into administration in early March. Fortunately, all 13 staff at Speyside Glenlivet have kept their jobs in the current transition.
However, a period of business restructuring which can arise many months after a business takeover can also create job insecurity. For example, about 30 jobs are to be lost at the British family-run Waters and Robson business (which produces Abbey Well mineral water) taken over by Coca-Cola in November last year. However, 49 of the 86 employees were reportedly on course to be made redundant at the company’s plant in Northumberland at one stage, so it could be argued that the purchase has actually been a successful rescue.
In other M&A activity, Boreal Water Collection – which is responsible for the Canadian operator Les Sources Saint-Elie – has acquired Leisure Time Spring Water based in New York, which went into liquidation in December last year. Elsewhere in the US, Vermont Pure Holdings has bought Blue Hill Spring Water Company.
Of course, not all consolidation is a question of survival. Take the 10-20% equity taken by Coca-Cola in the UK-based smoothie producer Innocent Drinks, a company with a packaged water line called This Water. We assume the stake taken by the multinational, and $30m investment it has poured into Innocent, will result in an immediate boost to employment at the business. Watch this space.
© FoodBev Media Ltd 2024