Britain's biggest brewer Scottish & Newcastle (S&N) has provoked outrage with the closure of its historic Fountain Brewery in Edinburgh.
Up to 180 workers at the plant will lose their jobs in a move that will see S&N sever brewing ties with its home town.
The brewery, which was built in 1856 by William McEwan, will close in December. Property experts predict the sale of the site could generate more than £40m.
Raymond Wilson, senior regional industrial organiser for the Transport and General Workers Union, said: "People are absolutely disgusted. The company said we had a bright future - now it's all gone.
"Closing this brewery is an absolute outrage. This is sheer corporate greed and a despicable move by the company." A huge question mark hangs over the Tyne Brewery in Newcastle, which makes S&N's iconic Newcastle Brown Ale and employs 200 staff. Speculation suggests this will be next to close.
The brewer has retained one foothold in Edinburgh. Some of the ale brands, including McEwan's, will shift production to the Caledonian Brewing Company, in which S&N has acquired a 30 per cent stake.
As part of the partnership deal S&N will buy all the assets of Caledonian's brewery and own the export rights. Production of S&N's lager brands, such as Foster's and Miller, will move south.
Five years of UK brewery closures
1999
- Alloa Brewery closed by Carlsberg-Tetley
- Vaux Brewery closed
- Wards Brewery closed
- Mitchells stops brewing
- Wrexham Lager brewery closed by Carlsberg-Tetley
- Courage Brewery, Bristol, closed by Scottish & Newcastle
- Cannon Brewery, Sheffield, closed by Bass
2000
- Morland Brewery closed by Greene King
- King & Barnes, Horsham, closed by Hall & Woodhouse as soon as they bought it
- Ushers Brewery closed by InnSpired, the company that now runs just the pubs of the former brewery
- Whitbread sells its breweries to Interbrew
- Bass sells breweries to Coors and Interbrew
2001
- Mansfield Brewery closed by Wolverhampton & Dudley
2002
- Cape Hill Brewery, Birmingham, closed by Coors Brewers
- Castle Eden closed when the company buys Camerons in Hartlepool from W&DB and moves production there
- Brakspears closure announced at the end of the year
2003
- Tolly Cobbold closed following sale to Ridley's
- Thomas Hardy Brewery Dorchester
2004
- S&N announces closure of Fountain Brewery
Supplied by CAMRA
Trade views
- Iain Loe, CAMRA research and information manager:
- "S&N's whole business plan is to produce beer as quickly as possible and charge as much as possible. The quality seems to be an irrelevance. Perhaps the company should just be called 'and' because there is little that is Scottish or from Newcastle remaining in the company."
Billy Lowe, managing director of Edinburgh-based Saltire Taverns:
"It was a huge shock when I found out. I've been assured the status quo will remain intact from a supply point of view. But moving most of its brewing operations south of the border is a big step for S&N."
Ian Rigg, licensee of the Taps in Lytham St Annes, Lancashire:
"It's another nail in the coffin for real ale. The ale brands are being sidelined and the big brewers are forcing everyone to have smoothflow or lager. It is terrible they can dictate this when the licensees and customers want real ale. I can't understand why Caledonian would 'get in bed' with S&N."
Related articles:
S&N confirms closure of Fountainbridge Brewery (17 February 2004)
S&N to close Scottish brewery (16 February 2004)