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Breweries Tumble to Voracious Super-Regionals
by John Cryne
Once upon a time there was a useful piece of legislation that acted as a disincentive to brewing companies owning more than 2,000 pubs. In its wisdom, government removed this and sure enough, and as CAMRA predicted, this has proved the death knell to a number of small, independent brewing companies.
In the spring, Cumbrian brewer Jennings of Cockermouth ended 177 years of independence by accepting a bid from Wolverhampton and Dudley, brewer of Banks’s and Marston’s ales. In these pages, we have previously defended the independence of Wolves so it’s a shame when that seems to be thrown back in your face as they gallop onto the take-over trail.
CAMRA had always feared a bid for Jennings but thought it would come from Stockport brewer Robinson’s, who had built up a 29% stake. Many years ago Robinson’s had bought and eventually closed Hartley’s of Ulverston so had a clear interest in this part of the country. But the colour of Wolves money talked – not least to Robinson’s. CAMRA’s pleas to other shareholders not to sell, fell on financially challenged ears. The current intention of Wolves is to keep on brewing in Cumbria. But pressure in the City has previously forced W&D to close its Mansfield brewery, so only time will tell how long that pledge lasts.
Not wishing to be outdone, the country’s other major regional brewer, Greene King of Bury St Edmunds heard noises off that the Monaco based Chairman of Ridley’s of Essex and his clan were looking to cash in their chips. You can hardly blame GK for accepting the bait but you can firmly criticise their decision to close the wonderful Hartford End brewery. The seller must have known GK’s intention so it’s a shame they did not listen to offers from other buyers who had said they would keep the brewery open. There must also be concern over pub closures and competition in villages that have both a GK and a Ridley’s pub.
CAMRA is mounting a determined campaign to persuade GK to keep the brewery open or sell it to a third party – you can register your support for this at www.camra.org.uk by signing the on-line petition.
Having barely digested this Essex morsel, GK headed north of the border announcing an agreed bid for Dunbar based brewer Belhaven. In this case, they are saying the brewery will remain open, which in view of the geography makes sense. This is a real play to obtain market strength in what is probably a weaker area for GK. While Belhaven has its own tied estate its real attraction comes from the fact that it has a huge number of direct accounts. As well as brewing its own name beers, it brews Maclay’s for the Maclay pub group. Oddly, Belhaven’s main presence in the trade comes from a keg beer – Belhaven Best, whereas GK sees itself as predominantly a producer of cask beer. It would be odd if this take-over led to greater availability of real ale in Scotland. CAMRA is urging shareholders not to sell but for now,on both these fronts, let’s not hold our breath.
Belhaven claimed to be the oldest independent brewery in Scotland, going back at least to 1719. Ridley’s could trace their start back to 1842. So adding 177 years from Jenning’s that’s some 600 years of independent brewing gone in six months.
Hope you all had a good summer! But it was probably not as profitable as that had by the former owners of an important part of Britain’s independent brewing heritage.
Reproduced from the Full Pint, Issue 32.
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