Camerons Brewery sells free on-trade business

Tough market conditions have forced North East brewery Camerons to sell its free on-trade business to Coors for an undisclosed sum.

The business contributed 40 per cent of Camerons turnover. It consists of nine depots, which are predominantly in the North East of England. Eighty four Cameron's employees will transfer to Coors.

Yousif Doubooni, Camerons' marketing manager, said the brewery had built up the free-trade business in recent years, but the pressures of a highly competitive market meant the group felt it should focus on its own operations instead.

"This move has been on the cards for some time. The wholesale market has changed and in the North East it is proving an extremely competitive, low margin business to be in," he said.

"We want to go back to basics and be a regional brewer again. We've currently got 53 pubs and ultimately want to get that up to the 200 mark," he added.

John Holberry, sales director of Coors Brewers said: "We are very excited that we are buying an excellent business with some very talented employees. This deal allows the combination of the local skills of Camerons with the scale of Coors resulting in a greater offering to customers in the North East."

Camerons said it will continue to brew its portfolio of beers and to operate its own retail estate.

Cash from the deal would help the group buy more pubs, invest in its existing estate and go towards upgrading its Lion brewery.

The brewery currently has a capacity of 700,000 barrels annually, but actual production today reaches just half that figure.