European-based Gruppo Campari will reduce the staff headcount at Jamaican subsidiary Lascelles de Mercado (LdM) by 200, or roughly 10 per cent, as part of a restructuring exercise, according to company financials.
The profitable local company, led by its flagship Appelton rum brand, made US$107.7 million ($10 billion) in sales for the half-year ending June 2013, 17.4 per cent higher than over the corresponding period last year.The headcount reduction forms part of the overall reorganisation at LdM, which merged 22 companies into one — Wray & Nephew Ltd on 2 August 2013 — according to the financial notes.“Rationalisation of the structure also involved the implementation of a restructuring programme for staff announced in the second quarter, which will eventually entail a headcount reduction of about 200,” stated the Campari financial notes.The departments affected will primarily include sales, logistics and finance departments, it added.“J Wray & Nephew Ltd will ensure an appropriate outplacement service for the staff involved,” stated the notes.Company secretary Jane George, up to press time, did not respond to a Caribbean Business Report query on the current staff size.Campari acquired Lascelles in December 2012 for some US$409 million from Trinidad-based majority shareholder, CL Financial, and local shareholders. In September 2012, details of the proposal indicated that the acquisition would nearly double Campari’s workforce from 2,300 to 4,300.“Total headcount of 2,000 full-time, plus seasonal on a need basis,” indicated Campari in note 3 in its “Acquisition of Controlling Stake in LdM” proposal.That note related specifically to the staff complement within the two LdM segments it would acquire.Meanwhile, Campari indicated that the merged 22 companies would strengthen the group’s “route to market” in Jamaica and will improve customer service and efficiency.LdM generated sales of ¤107.7 million for the first half, or an increase of 17.4 per cent year on year: The spirits & wines division of LdM made ¤64.3 million; merchandise and agri-pharma divisions ¤25.2 million; and supply chain sales (sugar and bulk rum) ¤18.2 million.Interestingly, over the six-months in review, Appleton sales totalled ¤19.3 million; Wray & Nephew White Overproof Rum, ¤15.9 million; Coruba, ¤4 million ; Magnum tonic wine ¤8.9 million; Charley’s, ¤3 million; other group spirits & wines brands, ¤8.7 million and third-party brands distributed ¤4.6 million.Campari Gruppo registered a reduction in profit despite the positive performance of LdM. Campari Gruppo made one-quarter less profit year on year at ¤57.9 million on ¤698.6 million in sales, financials indicated.“Overall growth in the first half of 2013 was negatively affected by a one-off circumstance, which, although anticipated, had a major effect on the performance of the Italian market,” the financials indicated.In March 2013, the group did not benefit from the usual spike in spring sales within its core Italian market. It was due to regulatory changes that restricted deferment of payment by wholesale clients.“This regulatory change had an estimated impact in Italy of approximately 25 million on first-quarter sales, resulting in a contraction of 26.3 per cent,” stated the financials.Bob Kunze-Concewitz, CEO of the Campari Group, which acquired Appleton maker Lascelles de Mercado last year.View the original article here
Lascelles trimming headcount by 200
