The decision by Samoa Breweries Ltd to close down production of Vailima beer in Samoa and move to Fiji, will ultimately cost the company in sales revenue.
This is the view of a group of “minority shareholders” in the company, who have taken the SBL board of Directors to task over the decision to relocate to “state of the art” brewing facilities in Fiji which will cost more than 50 local jobs.
KHJ News has been given email correspondences, from SBL shareholder Voicea Tangata to the Chairman and Managing Director of Coca Cola New Zealand and Pacific, Chris Litchfield, outlining concerns over the proposed move, especially the job losses.
The Managing Director replied, by email, saying that the company had preferred the beer maintain production in Samoa.
“However, over many months, we have explored every avenue to continue brewing in Samoa, including further investment into our aging brewery, working with a third party to develop a new brewery, and working with a third party to brew the Vailima. Unfortunately, none of the options were viable,” Litchfield wrote.
He said, their obligation as the Board is to look after the shareholders interests in the company, including its cash flows.
“After many years of accumulating losses, a difficult operating environment, and a competitive market it is simply not sustainable to produce locally.”
Tangata questions the “Board obligation” and asks if the provision of second hand production equipment is the extent of their obligation.
“The sad thing about this, is that the majority of these investments never worked and are still sitting idle in the factory occupying space and millions of dollars in depreciation,” replied Tangata.
Samoa Breweries Ltd announced last week that it would be closing down the Vaitele, Samoa plant and moving production of the iconic Vailima Beer to Fiji.
The brewery management said that they are working with affected workers to find suitable alternative employment, and to offer acceptable redundancy payments.
