Wells & Young's Brewing Company buys rights to Courage cask ale brands

17-Jan-2007 - Last updated on 28-Aug-2011 at 05:03 GMT

Related tags Cask ale Cask ale market Beer

Wells & Youngs Brewing Company (W&YBC) has stepped up a gear in the cask ale market by buying the rights to brew, market and sell the Courage...

Wells & Youngs Brewing Company (W&YBC) has stepped up a gear in the cask ale market by buying the rights to brew, market and sell the Courage ale brands from Scottish & Newcastle (S&N) for an undisclosed sum.

The deal sees the formation of a venture called Courage Brands which will be 83 per cent owned by W&YBC, with S&N owning the remaining 17 per cent.

The transfer of brewing of Courage's beers, which include Best, Directors and Light Ale, from S&N's John Smith's Brewery in Tadcaster to W&YBC's operation in Bedford will be undertaken in the coming months.

Nigel McNally, W&YBC's managing director, said the acquisition of the Courage brands gave his brewery the critical mass it had been looking for.

"This arrangement means we're buying in more than 100,000 barrels of annual production, taking our total production to more than half a million barrels a year," he said.

McNally said the deal was a "significant first major acquisition" for W&YBC "and firmly cements our commitment to brew and develop specialty cask ale".

Courage Best and Directors were among the best known beer brands in the country, with special interest in the south east and London, McNally said.

He added that W&YBC would still be committed to the Young's brands it acquired last year, while more than £2m would be spent on marketing its own Bombardier brand this year.

John Dunsmore, managing director of S&NUK, said that "under the stewardship of W&YBC, we will see substantial new investment in these classic cask ale brands which will be able to flourish under the new arrangement".

A spokesman for S&N confirmed the deal would enable the group to focus on its four core brands of John Smiths, Kronenburg, Fosters and Strongbow cider.

"We recognise W&YBC as a centre of excellence and we're keeping our hand in with the 17 per cent stake," he added.

He said it was too early to assess the impact on the 20 or so S&N workers who are directly involved in Courage production, but that the situation was being reviewed.