Molson Coors defends 90-day payment move
Carling brewer Molson Coors has defended its move to extend payments terms for its suppliers to 90 days.
The Forum of Private Business today included the brewer in its "hall of shame" for the move, which took effect this month.
Molson Coors has written to its suppliers saying their invoices won't be processed for more than 90 days from receipt.
The FPB quotes one unnamed self-employed tradesman, who said he could no longer carry out contracts with the firm after the changes.
Molson Coors finance director David Heede said: "Brewing is a largely domestic industry and has strong links with agriculture, pubs and communities and so playing a huge role in generating local jobs, government revenue and supporting the wider UK economy.
"However, there is a fundamental challenge for the beer industry - the total beer profit pool is down approximately 30% over the last five years.
"As part of a global initiative on working capital, we are changing our Supplier Payment Terms from 1 September to be more consistent with industry standards and to be more competitive in the global beer market.
"Looking ahead to the long term of the beer market is vital to the sustainability of the category and will ultimately benefit our consumers, customers and, of course, our suppliers."
