WORKERS at a soft drinks factory in Blandford St Mary were devastated yesterday as news broke that almost half of them will lose their jobs.

Around 220 staff at Hall and Woodhouse face unemployment in the new year as the company abandons soft drinks production to focus on pubs and its own brands.

Canning and bottle production will cease and production of the Company's Popzone brand, which includes Panda Pops and the Rio brand, will be outsourced - although at this stage it is unclear which companies are in negotiations to take over.

A worker at Hall and Woodhouse described the atmosphere after staff were told yesterday morning. "There were a lot of women sitting around crying. There is a foul mood. During the meeting a couple of people who have been here for 30 or 40 years confronted the Woodhouse brothers," he said.

Bosses at the site are in discussions with the T&G union to come up with a fair arrangement for those affected and say they will help employees find new jobs. But Blandford mayor Gerry Chapman said he was saddened by the news and branded it "bad news for the local economy".

Hall and Woodhouse described the industry as "volatile" and said it was no longer able to compete in the soft drinks industry.

David Woodhouse, group managing director at the company, said: "We are very grateful to all our employees who have worked extremely hard in soft drink production, but despite their best efforts we cannot make a success of this business when all the odds are stacked against us.

"We have done well to swim against the tide for so long but our key competitors have the strategic advantage of lower production costs through greater scale, lower wage costs, better geographical location and more efficient and up-to-date plant."

He said people were understandably shocked by the news but said a fund has been established to help people retrain in new careers.

He said he was optimistic that eliminating this loss-making element of the business would enable it to increase investment in its pubs and brands.

He added: "Future investment will focus on our pubs and brands to create sustainable employment."

Brewing and bottling of Badger Beers will continue as normal at the site.

FACTFILE

HISTORIC Dorset brewer Hall & Woodhouse has been finely maturing for 227 years. Dating back to 1777, the family-owned business is now run by the fifth generation - when only 10 per cent of family firms reach the third generation.

Hall & Woodhouse was founded by farmer Charles Hall, born in 1751. Like many of his contemporaries, he brewed beer to provide "wholesome refreshment" for his labourers.

Mr Hall founded his firm's first brewery at Ansty in Dorset in 1777.

Production was expanded during the Napoleonic campaign when he secured a contract to supply the Army, camped near Weymouth.

In 1847, founder's son Robert Hall took George Woodhouse into partnership. George astutely married one of Charles's granddaughters. In 1875, Hall & Woodhouse adopted its familiar Badger emblem, one of the oldest registered trademarks in Britain.

The present brewery at Blandford St Mary opened on October 16 1900. Hall & Woodhouse had bought the land in 1899 for £28,000. Some of the historic equipment used over subsequent decades is still on display today. Hall & Woodhouse diversified into soft drinks in 1957, unveiling the Panda Pops brand in 1974 then the Rio range in 1990.

Today the Hall & Woodhouse empire has grown to more than 250 pubs spanning an area from Exeter to Eastbourne to Hemel Hempstead.

In addition there are some 700 free trade accounts. Badger bottled beers can be found nationally in leading supermarkets and off-licence chains. Its Panda Pops range is now the "brand-leading children's soft drink".

Hall & Woodhouse has a turnover of around £90 million and employs more than 2,000 workers.

First published: October 29