By James Atkinson

Glass packaging manufacturer Owens-Illinois (O-I) has attributed the downsizing of its Melbourne plant operations to a decline in Australian beer and wine consumption.

O-I, which recently developed the packaging for Carlton United Brewers' new Victoria Pale Lager, last week announced it will cut the number of furnaces at its Melbourne Plant from three to two and reduce the workforce by around 70 positions.

O-I Australia general manager Brian Slingsby said the decision followed ongoing deterioration in market conditions in Australia and weak consumer sentiment.

"This has led to declining food and beverage sales across the country, particularly in the beer and wine segments," he said.

Slingsby told TheShout per capita consumption of beer in Australia is at its lowest rate in around 60 years.

More info:

http://www.theshout.com.au/2012/01/23/article/Drinks-downturn-hits-bottle-manufacturer-O-I/AWCNRTBXYM.html