Constellation cuts jobs after duty hike

16 June, 2008

Constellation has announced it will axe 50 jobs in the UK in response to the duty hike in the pre-Budget report – and warned that more could be lost unless there is a rapid change in the government's alcohol policy.

Constellation Europe president Troy Christensen told the Times this year's two duty increases have cost the company £50 million, and warned that promotional investment could be cut as well as more jobs.

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

"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 in Europe."

A Constellation spokeswoman told OLN: "It is because of the further duty increase in the pre-Budget report. Wines are in negative growth for the first time this year, so we have had to make cuts."

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