Wells & Young's set to overhaul rivals
The new Wells & Young's Brewing Company starts trading next Monday with plans to increase combined barrelage by 20,000 to well over 500,000 barrels in its first year of operation.
In the process, it aims to join Greene King as one of the two brewers that it believes will dominate the free trade in coming years, supplanting Wolverhampton & Dudley.
Wells & Young's brewing merger in May catapulted the new company into third place on the list of super-regional brewers, behind W&D's 603,000 barrels a year and Greene King's 540,000.
Previously, Charles Wells was in fourth place (350,000) and Young's in eighth (130,000).
The company will be owned 40% by Young's and 60% by Wells, reflecting the assets contributed by each shareholder.
New managing director Nigel McNally says the combined brewing group will seize opportunities to drive the real-ale category and increase retail sale prices.
"We think that, although the ale market will continue to decline, there are opportunities for us as an independent brewer with well-supported brands to increase our market share. We are aiming for a minimum of 500,000 barrels."
As well as committing £4m to support Wells' Bombardier and both of Young's lead ales, the brewer has invested £10m in a new Bedford warehouse and one in Croydon, south London, plus £2m in new cask-racking. Brewing has just moved to 24 hours a day.
Over 90 ex-Young's staff have moved to the new company - 23 in sales and marketing out of a sales force of 71, and 70 in production - giving a total workforce of 420.
George Wright from Young's will assume the role of ales marketing manager.
Four Young's brands have been delisted: Dirty Dicks, an export brand; Kew Brew, an off-trade seasonal; Golden Zest, an off and on seasonal; and Young's Pilsner Lager.
Young's London Bitter will retain its name even though it will in future be brewed in Bedford, on the grounds that it is a defined bitter style.
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JOINT FORCES
l The merged brewery
doubles Wells & Young's share of the UK ale market in both on and off trades
l Wells & Young's owns the fastest-growing standard ale (Young's Bitter) and the fastest-growing Top 10 premium draught ale
l Corona Extra is the
fastest-growing of the Top 20 beer brands in the UK
l Red Stripe is the
fastest-growing of the Top 10 premium draught lager brands in London
l Kirin Ichiban is the 12th largest beer brand in the
world.
finance role
Justin Phillimore has been named as the new finance director for the Wells & Young's Brewing Company.
Phillimore, who joined the company at the start of this month, served as finance and business development director of wine and spirits company Seagrams
between 1998 and 2002. More recently he was general manager of global business development at GE SeaCo, a leader in marine container leasing.
Wells & Young's Brewing Co will have a turnover of around £200m. Young's wines and spirits
subsidiary, Cockburn & Campbell, will keep its name when it merges with the Charles Wells wine
operation, Havelock Wines.
