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Fizz goes out of Silver Spring sales
11:01, 16 August 2011
Jobs are on the line again at Kent's Silver Spring soft drinks and mineral water company after the fizz went out of sales.
Up to 40 jobs- nearly a third of the workforce - could be axed as the firm fights to recover from the weak economy and a downturn in demand for its products.
Below-average summer weather and consumer belt-tightening are being blamed for the downturn.
Gary West, chief executive at the Folkestone-based company, said exact numbers still had to be confirmed but following consultation with the workforce, it was expected to be "in the region of 35-40."
Silver Spring currently has 130 employees.
Mr West said there had been a downturn in soft drink sales because of the economic climate, inflationary pressures on consumers, who consequently had less discretionary spend, and poorer than normal June and July weather.
It's been a troubled three years for Silver Spring.
The company, which is more than 130 years old, went into administration in 2009 owing £30 million and 60 staff were made redundant.
It was saved from possible closure by a so-called pre-pack administration and an equity injection.
Turnaround specialist Neill Cotton was brought in as managing director but he was axed after less than a year, along with about 30 other employees.
Gary West replaced Mr Cotton in October, 2010, but he has now told staff that more jobs are to go.
In a statement, Mr West said: "Whilst significant progress has been made, it is critical we continue to restructure the business and ensure it remains profitable and competitive for the long term. To reflect a rationalisation of some lower margin product lines and respond to general weakness in the economy, the board has taken the decision to review all our operating costs, which will result in job losses.
"I can confirm therefore that we have started a consultation process to identify which specific jobs may be at risk but we are hoping to mitigate as many of these as possible through voluntary redundancies and consultation with colleagues.
"These are difficult decision made by the board but are necessary for the long term viability of Silver Spring."
Mr West said there were some positives to report - Silver Spring had improved profits, attracted external funding and secured a 50-year agreement for water supply.
The company was focusing developing and investing in its successful lines, including its 1870 re-launched mixer brand and its popular Perfectly Clear flavoured waters, together with its contract packing business.
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