One of the latest casualties of the beer industry in the US is the second-largest beer manufacturer with a division in the United States as a part of the Dutch global beer manufacturer, Heineken.
Heineken reported that the company will be going towards downsizing out of necessity, which means that one of the largest beer manufacturers will be cutting around 15% of the total workforce.
Heineken isn’t the only beer and beverage manufacturer suffering from price cuts and downsizing in the US, as other companies such as MillerCoors and Constellation Brands are also cutting on the workforce.
Beer Not as Popular Among Millennials: Low Sales Enforce Price Cuts and Workforce Layoffs
It appears that even though 2019 is bringing the US beer production into focus, and for all the wrong reasons as the sales and profits are slowing down, the problem with downsizing in the beer manufacturing industry is not a novelty.
Back in December 2018, one of the biggest brewers in the US and the tenth-largest beer manufacturer, Deschutes, commenced with cutting workforce, laying off 10% of their employees after the company made workforce expansions to initiate growth, which eventually backfired due to low sales.
Heineken is now following with announcing 15% of cuts among the workforce, as initiated by poor sales.
Apparently, Heineken is reformulating their business strategy in order to try and inverse the current sales and according to the representative of the company, Heineken has a goal of making their business in the US more cost effective and more efficient to assure their position in the country and reinvest in their brands in the US.
During the last year, Heineken-owned Lagunitas went through 12% of workforce cuts in order to respond to a more challenging market.
According to the CEO of the company, the man problem affecting beer sales in the US lies in the fact that millennials drink less beer in oppose to the previous generation, more commonly using spirits and cocktails.