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McMullen's Put Up For Sale
by John Cryne
The pressures on the regional independent brewing sector continue, with the announcement that Hertfordshire's oldest and biggest brewing company is to consider options to best realise the value of the company, which most interpret as putting itself up for sale. The brewery, whose pubs extend well into London with the Spice of Life, Cambridge Circus, and Nag's Head, Covent Garden, produces a range of well-regarded real ales, including AK and Country.
The announcement is thought to have been precipitated by a split in the various family interests who own the company. While some would seem to want to sell out, cash in and run, others, such as Chairman David McMullen and Fergus McMullen, want the company to continue as a vertically integrated brewing and pub owning outfit. The split mirrors events at many other family owned breweries, such as Bateman's, who somewhat exceptionally survived, and Morrell's and King & Barnes, who didn't. The concern for CAMRA and real ale drinkers is yet another erosion of choice in the market, for unless the existing management manage to put together a buy-out, then the likelihood is that the brewery will close and the current beer brands will die.
But putting together a buy-out will not be easy due to the anticipated value being put on the company, a price tag of £200m being mentioned in The Sunday Times. The company owns over 130 mostly freehold pubs and other properties in the south of England. These are likely to attract the interest of pub owning groups or even a large brewing competitor such as Greene King, who might be able to put together a bigger premium than a management buy-out.
At the CAMRA AGM in Scarborough in early April, members from all over the UK pledged support to those McMullen's family members fighting for the company's survival. It is not as if the company is unsuccessful, it is trading profitably, but it seems for some this is not enough. The brewery has a strong regional presence, a healthy pub estate and a handful of brands with a strong regional following. CAMRA believes it should continue as a pub owning brewery and that AK and Country can continue to be enjoyed out of Hertford for another 175 years.
Reproduced from the Full Pint, Issue 15.
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