A COMMUNITY was in shock today after 220 jobs were axed by Dorset brewer Hall & Woodhouse.

The body blow to the economy of Blandford comes just eight weeks before Christmas as the company pulls out of soft drinks production so it can focus on its pubs and brands.

Hall & Woodhouse said 220 jobs would go out of a total of 500 at its Blandford site. The company said the decision was made to secure the company's future success by eliminating the cost of a volatile business which it could no longer viably compete in.

Many families in the 8,500 population of the town have worked with the brewer for generations.

Canning and bottle production will now cease and production of Hall & Woodhouse's Popzone and Rio brands will be moved elsewhere.

Brewing and bottling of Badger Beers will be unaffected by the job losses.

The company added that it was now holding talks with union officials and those employees affected and had pledged its 'unstinting help and support'.

Company group managing director David Woodhouse said: "Hall & Woodhouse is committed to the growth and future prosperity of our business, its pubs and its brands.

"Our decision to exit soft drinks production has not been taken lightly but is unavoidable.

"We have done well to swim against the tide for so long but our key competitors have the strategic advantage of lower production cost through greater scale, lower wage cost, better geographical location and more efficient and up to date plants which can service the change in customer preferences. This could only be resolved through massive capital investment on which we cannot foresee any return in a competitive and volatile soft drinks industry."

Hall & Woodhouse was very grateful to all its employees who had worked extremely hard.

He said: "But despite their best efforts we cannot make a success of this business when all the odds are stacked against us. While our decision is therefore unavoidable, we will work hard to minimise its adverse impact and do everything that is reasonably possible to help our employees find new jobs.

"By eliminating this loss-making element of the business, we can increase our already heavy investment in our pubs and our brands which are showing strong growth.

"Our investment to date in these areas shows that we mean what we say and Dorset can rest assured that future investment will focus on our pubs and brands to create sustainable employment."