Bacardi-Martini is to close its Southampton bottling plant in response to "continued and significant" ready-to-drink (RTD) sector decline.
Announcing a "period of consolidation", the company said that manufacturing and bottling of Bacardi Breezer, and bottling of Bacardi rum, will switch to other UK sites.
Up to half of the com-pany's 400 employees at the Southampton facility may be affected, a statement said.
Warehousing and logistics operations will be reviewed and may be relocated elsewhere in the UK.
A review of the commercial side of the business could result in sales, marketing, accounting and human resources departments moving "within the local area".
RTD sales are declining by 15% a year, according to
AC Nielsen figures from 2006.
Bacardi Breezer saw its distribution fall from 75% in 2005 to 70% last year.
Bacardi-Martini UK chief executive John Beard 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 decision to make for the long-term growth
and competitiveness of the company."