McMullen's to join microbrewers

Related tags Hertford brewer mcmullen Cask ale

Hertford brewer McMullen's is considering joining the ranks of the microbrewers to gain the benefits of progressive beer duty (PBD).The company has...

Hertford brewer McMullen's is considering joining the ranks of the microbrewers to gain the benefits of progressive beer duty (PBD).

The company has announced it is to continue brewing following a review of its business in which the sale of the brewery site for redevelopment was considered. But McMullen's said it is looking at an unusual "halfway house" move which would see it end a contract brewing deal with Scottish Courage and reduce its brewing capacity.

By cutting production to below the 18,000 barrels-a-year limit at which PBD kicks in, McMullen's estimates it would save £120,000 a year in duty on its own beers, which include CAMRA favourites Original AK and Country Best Bitter. It would also free part of the Hertford brewery site for sale.

McMullen's spokesman Barry Bremner said the proposal was at an early stage and the need to maintain supplies to the company's 130-strong tied estate was one of the issues being considered.

"By concentrating on our cask conditioned ales we shall be able to meet the existing requirements of our own pubs as well as our freetrade customers," he said.

The brewer does not sell through wholesalers and keeping within the PBD limit would not leave room for beer sales to pubcos.

Microbrewer Roger Catte, managing director of Moles Brewery in Wiltshire, said: "I can see the logic of cutting contract brewing, since McMullen won't be making much margin there, but overall it does seem to be a retrograde step."

Mr Catte said that the introduction of PBD in 2002, which halved the rate of duty paid by the smallest brewers and is currently worth around 15p a pint, had not been a windfall for microbrewers.

CAMRA has supported the move but is calling for an urgent meeting with McMullen's to discuss the future of its cask beers and pubs.

Mike Benner, head of campaigns and communications at CAMRA, said: "We want to show our support for what McMullen's is trying to do. We'd also like reassurance that its beers will still be available to the trade."

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