Tue, 08 Oct 2024 | ADMINISTRATION
Carlsberg Marston’s Brewing Company (CMBC) is set to close the 150-year-old Banks’s Brewery in Wolverhampton next autumn, putting nearly 100 jobs at risk.
Banks’s Brewery has been operating for nearly 150 years. However, according to CMBC, the decision by Spanish beer group Mahou San Miguel not to renew their long-term exclusive production and distribution agreement from the start of next year, as well as a decline in cask ale volumes over recent years, made the closure necessary.
Around 97 jobs at the brewery could now be lost, with CMBC stating that it will be "working with trade union and colleague representatives throughout the consultation process".
“This has been an extremely difficult decision, however it has been necessary to restructure our business to maintain our competitiveness in a challenging UK beer market. The hard reality is that, because of the current climate for ale and Mahou San Miguel’s decision we will have significant excess capacity across our brewery network which we have to address,” said Paul Davies, CEO of CMBC.
However, Davies added that the company would be investing more than £6 million in new projects at its brewery in Burton. This includes refurbishing its cask ale line to brew traditional British beer as well improving its capabilities to brew new contemporary craft ales.
In addition, CMB said significant investment would be put into a new logistics depot in the Black Country region, to support its nationwide secondary logistics network. “While the proposed closure of our Wolverhampton brewery is very regrettable, with the significant investments we are making in our Northampton and Burton breweries, CMBC will continue to deliver for our customers,” Davies added.
Breweries have been hit by a number of headwinds over recent years, ranging from the COVID-19 pandemic, to the cost-of-living crisis, higher energy and materials prices and changing customer drinking habits. According to recent research from audit, tax and advisory firm Mazars, 69 British breweries became insolvent in 2023, up from 38 in 2022.
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