Scottish Courage closes Tyne Brewery

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Scottish Courage, the UK's leading brewer, has announced a second major brewery closure.Only three months after the closure of its Edinburgh-based...

Scottish Courage, the UK's leading brewer, has announced a second major brewery closure.

Only three months after the closure of its Edinburgh-based Fountain Brewery, the Scottish & Newcastle company is set to close its Tyne Brewery in Newcastle in spring 2005.

Scottish Courage also announced that it has bought the Federation Brewery for £7.2m and will combine the two brewing operations at the Dunston site.

The new combined brewing business in Dunston will employ 170 people but more than 100 jobs could go, which the company hopes will be achieved through voluntary redundancy.

The move follows six months of activity including the closure of the Fountain Brewery in February this year and the Theakston Brewery sale in November 2003.

In February Scottish & Newcastle warned that its brewing business was under review and that there were no guarantees being offered to other sites.

John Dunsmore, Chairman and Managing Director of Scottish Courage, said: "Both breweries have been operating below industry standards of capacity and efficiency. By joining forces, Scottish Courage and The Federation are able to preserve a home on Tyneside."

Production of Newcastle Brown and other ale brands will remain on Tyneside, while production of other Scottish Courage brands will transfer to Tadcaster.

Beer consumer group, the Campaign for Real Ale, today condemned the decision as beer has been brewed at the site for well over 100 years.

John Holland, CAMRA's Brewing Industry Director said, "The loss of thebrewery is a blow and represents another nail in the coffin for the British brewing industry. S&N is now very much a global company, but its roots lie in Newcastle and they would do well to remember that."

Related articles:

All S&N brewing under review (24 February 2004)

S&N 'lied' to workers over brewery closure (23 February 2004)

Anger over S&N's decision to close historic brewery (19 February 2004)

S&N confirms closure of Fountainbridge Brewery (17 February 2004)

S&N to close Scottish brewery (16 February 2004)

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