S&N confirms closure of Fountainbridge Brewery

Scottish & Newcastle has today confirmed the closure of its Edinburgh brewery with the loss of 170 jobs.

John Dunsmore, managing director of Scottish Courage, S&N's UK brewing arm, told thepublican.com: "It is an incredibly tough day for the 170 people affected by this decision but also for everyone at Scottish & Newcastle.

"But is absolutely the right thing to do and crucial in our aim of reducing the costs in our UK operations."

Staff at the Fountainbridge Brewery, which produces beers such as McEwan's, Tartan Special and Younger's, will be offered retraining, relocation or redundancy.

Production of some of the beer brands will shift to Edinburgh brewer Caledonian as part of a partnership agreement.

S&N has acquired a 30 per cent stake in the business, which brews the award-winning Deuchar's IPA and Caledonian 80/.

As part of the deal they will buy all the assets of Caledonian brewery and become its agent for the off-trade. S&N will also own the export rights.

Britain's biggest brewer said the closure of Fountainbridge would save £10m a year, although it would cost an initial £25m. It expects to recoup some of this through the sale of the brewery site.

Lager production will br transferred to other Scottish Courage breweries in the UK.

Mr Dunsmore said he would not comment on speculation that S&N was set to shift production of Newcastle Brown Ale away from Newcastle.