Moorhouse's expansion spells success

The Burnley brewer is a true survivor and now it plans to double its brewing capacity and buy more pubs. Graham Ridout reports

Last month, Moorhouse's celebrated its 140th anniversary in style by announcing a £750,000 investment programme to double the size of its brewhouse and add more pubs to its estate. The announcement signals the latest chapter in the Burnley brewer's remarkable history of ups and downs. Despite its longevity, the company only started producing cask ale in 1978 when the Moorhouse family sold the business to a local builder, Michael Ryan.

The origins of the company were founded on selling mineral water and soft drinks before production of hop bitters started in the early 1900s. The hop bitters had alcoholic strengths varying between 2.8% and 3.2%, which ironically found favour with the temperance movement because they were not as potent as other brews available during the early years of the 20th century.

The mineral water business was sold in the 1930s to none other than Blackburn brewer Daniel Thwaites.

Ryan's tenure was only to last a year as losses mounted while he tried to convert drinkers to his creation the 3.7% abv Premier Bitter. Even worse was to come as four owners arrived and quickly went in the space of two years and the brewery struggled to sell 10 barrels a week.

Changing fortunes

Moorehouse's was granted a respite in 1982 when entrepreneur Alan Hutchinson bought the brewery to supply his string of nightclubs, hotels and bingo halls. Under Hutchinson's stewardship, Pendle Witches Brew was introduced and production increased to 25 barrels a week.

However, Hutchinson's sudden death in 1985 created more traumas when his business interests were acquired by Apollo Leisure and owner Robert Sangster ordered the brewery to be sold or closed within six months.

Moorhouse's saviour turned out to be locally born Bill Parkinson, who ran an international heavy lifting business in Manchester and was also partial to a glass or two of Pendle Witches Brew. Parkinson recalls those days in 1985: 'When I saw the brewery was for sale, it was like reading an obituary. On a whim, I rang the brewery and was told to get over there as quickly as I could. So I did, and in five days I had bought the brewery.

He continues: 'I spent the next five years agonising over the decision and regretting it. Moorhouse's was struggling and in a very difficult market where lager had replaced cask ale. We were suffering heavy losses of about £1m, but I felt we had no option but to carry on and hope things would improve.

'Then, three things happened at about the same time. First, the Beer Orders were introduced and with them the provision that tenants could choose a guest ale that offered a tremendous opportunity for Moorhouse's.

'Second, we opened our first pub the General Scarlet our brewery tap.

'And third, we started winning awards.

In fact, according to the Campaign for Real Ale, Moorhouse's has won more awards than any other brewer of comparable size and more than many much larger and longer established brewers.

The crowning glory came last year when 4.1% abv Pride of Pendle was voted supreme champion in the cask ale category at the 2004 Brewing Industry International Awards (BIIA) in effect proclaiming it the best cask ale in the world.

And that wasn't all. Ryan's legacy, Premier Bitter, won a gold medal in its class at the awards.

Moorhouse's other two established brands Black Cat and Pendle Witches Brew have also picked up gold and silver medals at previous BIIA ceremonies.

The increased demand resulting from these latest successes has led the brewery to raise production, with between 220 and 240 barrels leaving the factory gates in an average week.

Last month, Blond Witch joined the four core brands. Blond Witch is a 4.5% abv pale- coloured ale that is intended to wean drinkers off lager to real ale.

A positive future

To mark the brewery's 140th anniversary, a new beer, Moorhouse's IPA, is being brewed. Managing director David Grant says initial reaction to the 4% abv 'very dry, delicious, and sessionable beer has been highly favourable and it may be added as a regular or even permanent fixture. This may depend on when final permission is granted to build the new brewhouse.

Moorhouse's has received an initial go-ahead, but work can only commence once the final few occupants have moved out of some old houses that are being bulldozed to create a new business zone within the town. The new facility will enable the 90-strong workforce to hit a target production figure of 500 barrels a week a 20-fold increase from the time when Parkinson first took control.

In the next few weeks, the company will take over another pub, the Rising Sun in Blacko, Lancashire, bringing Moorhouse's tied estate to seven. The plan is to further increase the estate, but only if the price is right.

Happy times, indeed, for a brewery that has flirted with permanent closure so many times in the past.