Sangs proposing distribution depot change

Scottish water and soft drinks manufacturer Sangs (Banff) Ltd announced to its workforce today (Friday 4 July 2008) that it is proposing to close its St Machar Road distribution depot in Aberdeen city centre and restructure its existing sales function throughout the UK.

A spokesperson for Sangs said: “This is a difficult move for us to consider and one that follows a great deal of effort as we have worked long and hard to seek out a viable business alternative. It has been driven by today’s worldwide economic conditions, not least of all the escalating fuel prices and the marked increase in raw materials such as sugar, the PET used in our plastic bottles and other elements like labelling.

“In order to create efficiencies, improve customer service and consolidate the business, we have to modify our distribution routes from both the Macduff and Aberdeen depots. Distribution is not proving economically viable.

“The announcement affects our workforce at the Aberdeen depot, where 22 people are employed, and six frontline sales personnel in the business. While we understand that this is a very difficult time for employees, we will be investigating all possible job opportunities at Macduff, as well as at our new depot opening in Rutherglen, Glasgow, in August 2008.

“Consequently, effective from today, we are entering a consultation period of at least 30 days with our employees and do not expect any reduction in our workforce of 73 people during this time. If closure of the Aberdeen depot is the ultimate outcome, then the actual date will be determined during the consultation and involve discussions with our customers.

“As it is essential we have a fit for purpose organisation in this challenging, fluctuating marketplace, we will be implementing a telemarketing function from August 2008 which will greatly enhance our customer service. Coupled with the creation of an efficient UK sales structure, these measures will help ensure we are able to meet the challenges ahead.

“The new site in Rutherglen, where we will employ four to five people initially, will allow the company to react quickly to the requirements of existing customers by providing us with the opportunity to gain new distribution points and new customers across the central belt of Scotland. This will help us achieve our challenging business targets by letting us focus more on areas where there are great opportunities.

“While we are opening in Glasgow, this does not mean a move away from the north east. We are busy consolidating business for future developments at Macduff, as part of our long term strategy for growth. Already, we have been able to increase production capacity by more than 10% to our current level at Macduff – 30,000 bottles per hour, 240,000 each day and 1.2 million weekly – by introducing simple changes to employee shift patterns. Macduff is also the source for our main raw material – spring water.

“Consolidating the business will allow us to continue our strategy for expansion. Targets still include doubling the current turnover of £13.4 million within the next five years. Our projected turnover by March 2009 is £17.4 million.”