Bacardi-Martini is to close its Southampton bottling plant in response to the "continued and significant" decline in the ready-to-drink (RTD) sector.
Announcing a "period of consolidation", the company said manufacturing and bottling of Bacardi Breezer, and the bottling of Bacardi rum, is to be switched to other sites within the UK.
Up to 200 out of 400 employees at the Southampton facility may be affected, a statement from Bacardi-Martini said.
It is very difficult to make a decision of this kind, but it is the right business decision to make for the long-term growth and competitiveness of the companyJohn Beard, chief executive of Bacardi-Martini UK.
Options for warehousing and logistics operations will be reviewed and may be relocated elsewhere in the UK.
A review is to be carried out into the commercial side of the business.
"If this moves, it would relocate within the local area with sales, marketing, human resources, and accounting departments," the company said.
John Beard, chief executive of Bacardi-Martini UK, said: "The change in business conditions, cost competitiveness and economies of scale were significant factors in the decision to prepare to cease bottling operations at the Southampton facility.
"It is very difficult to make a decision of this kind, but it is the right business decision to make for the long-term growth and competitiveness of the company."
John Speirs, operations director at Bacardi-Martini UK, said: "Bacardi-Martini is proud to have an outstanding and dedicated work force in Southampton and this action does not reflect on the quality of our operations or the calibre of our people.
"We thank all our employees for their continued dedication and professionalism. We are now entering a period of consultation."