JOB LOSSES IMMINENT

Published: 23 July, 2008

Nearly five thousand job losses could hit the UK wine and spirits industry next year, according to the 1st Edition 2002 Plimsoll Portfolio Analysis: Wines & Spirits'. The report claims the reasons go back long before the last few months of economic uncertainty. The analysis claims to provide evidence that at least 74% of the industry will need to shed jobs in the next 12 months. One of these big players could see job cuts of 808 people. There are also said to be at least 120 companies in serious financial distress. The findings reveal that the cost of salaries has increased by 25%, yet sales have risen only 9% in the same period. Some 72% of companies are spending more on salaries than they were three years ago, yet only half are making more profit. The cost of salaries as a function of sales has increased 19%, and already a quarter of companies are loss making. Next year, average salaries will increase from 21,554 to 22,548, a rise of 4.6%. David Pattison, senior analyst of Plimsoll, said: There is little doubt that managers will use the current economic and market conditions to make decisions that, frankly, they should have made 18 months ago.' The Plimsoll Portfolio Analysis: Wines & Spirits' contains analyses of the top one thousand companies, and costs 325. To order a copy, contact Plimsoll, tel: 01642 257800; www.plimsoll.co.uk. (Harpers' readers will receive a 5% discount if mentioning this news story when ordering.)

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