Drinks giant Diageo is to cut use of carton board in packaging for Scotch whisky because demand for carton board has been driven up by companies wanting to use the sustainability credential of the material.
And this has triggered consultation over the future of 80 jobs at the West Rock plant in East Kilbride which has Diageo as a major customer. A spokesman for the $18 billion packaging giant says: “I can confirm that WestRock has entered into a period of consultation with employees at its East Kilbride location which could lead to a potential reduction of 80 positions.
“This facility produces sustainable packaging, such as folding cartons for the premium wines and spirits markets, in particular scotch whisky.
“Reductions of demand for the packaging of this product are linked to the need to potentially eliminate these positions.”
The reduction in demand follows a decision by Diageo, one of the major owners of spirits brands, to phase out unnecessary packaging in pursuit of its sustainability goals. A spokesman for the business explains: “We have begun a programme to phase out the use of cardboard gift boxes from certain products in our portfolio.
“We are committed to becoming a zero waste business by 2030 and, despite its ability to be recycled, increased demand for cardboard has led to shortages.
“All of our supply partners were consulted throughout, and we have made several proposals to minimise the impact of any changes on them.”
Whisky is generally packaged in three ways. Brands that are sold in supermarkets or high street off licences and have a retail value around £25-30 will be packed in sleeved cartons; the next tranche up, up to say £60-70 a bottle including single malts, will be packaged in tubes while more expensive premium brands will be packaged in rigid boxes. There is no suggestion of changes in Diageo’s strategy towards luxury packaging.
However, the drinks supply faces a further threat as Unite the Union is threatening strike action at O-I Glass, one of the key suppliers of glass bottles.
The East Kilbride plant became part of West Rock in 2017 with the acquisition of Multi Packaging Solutions. At the time the factory had just installed an 18-unit Speedmaster XL106 comprising 11 print units, three coating towers, four drying sections and inline cold foiling for customers in whisky and confectionery. It sits alongside a slightly older 17 unit B1 Speedmaster.
