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Last orders

Jan 25 2008

by Nick Whitten, Evening Chronicle

 

Under threat

BROWN Ale brewing on Tyneside could be under threat of last orders after parent company S&N today agreed to a £7.8bn takeover.

Rivals Heineken and Carlsberg, who have been pursuing S&N since October, plan to carve up the business when the deal is completed.

The move is set to call time on more than 250 years for the brewer and could mean the end of Newcastle Brown Ale on Tyneside as well threatening the region’s 200 staff.

The Campaign for Real Ale believes the first step in Brown Ale leaving came when the EU allowed S&N to change the ruling which meant it could only be brewed on Tyneside.

Previously Newcastle Brown Ale had to be brewed in Newcastle, but production shifted to the Federation Brewery in Gateshead and now following the takeover there are fears it could leave the region altogether.

North East MPs expressed concern the takeover of S&N could be the end of Newcastle Brown Ale on Tyneside. Newcastle Central’s Jim Cousins said: "There is very little brewing left on Tyneside. One of my concerns is the future of Newcastle Brown Ale.

"Last August the company successfully broke the link between the ale and city under European Union Law which I deeply regretted. This means that Newcastle Brown could be brewed anywhere.

"I fear that one result of this takeover will be that sooner or later Newcastle Brown Ale will be brewed abroad."

Tyne Bridge MP David Clelland said: "Firstly there needs to be some reassurance to the workforce on jobs and secondly there needs to be some reassurance on the future of Newcastle Brown.

"Last year, S&N lifted the geographical link with the city for Newcastle Brown Ale which I think was a mistake. It could now be brewed anywhere.

"We need an assurance from the company’s new owners that Newcastle Brown will continue to be brewed on Tyneside because if it is not it will lose all its credibility."

John Holland national executive of Camra, of Gateshead, said: "I think there will be a review of all operations.

"More Newcastle Brown Ale is sold in America now and we could see it go there.

"I will be amazed if there isn’t any job losses. I fear we will lose brands as well."

Jeff Cole, 55, a former production manager for Federation Brewery, of Wallsend, North Tyneside, said he hoped the takeover would not mean an end to the production of Brown Ale on Tyneside.

He said: "I worked at the brewery between 1973 and 2005. I would like to think that it stays open.

"We used to have four or five breweries on Tyneside now we have one. But it all depends on what the new people want to do with the brand.

"I know that some of the process is done down in Tadcaster anyway so we will have to wait and see and I’m sure we’ll find out soon. But I hope this won’t affect jobs and I don’t see why it should."

Union chiefs expressed fears for the future of the Federation Brewery in Dunston.

Jeff Tate, Unite regional officer said: "We fear that Newcastle Brown Ale and the Federation Brewery are now both very much in jeopardy.

"Brown Ale is one of Tyneside’s great traditions and to lose it would be disastrous."

GMB regional secretary Tom Brennan said: "The loss of the S&N name which has such a long association with this region is very sad.

"We are also very concerned for our membership. We will be seeking assurances from the employer."

Last year S&N bosses announced Broon Ale would no longer be bottled on Tyneside, meaning 66 jobs were axed.

Bosses insist Brown Ale is here to stay on Tyneside and there is no chance they will stop brewing it at Federation Brewery in Dunston, where 216 million pints are produced a year.

But the biggest market for Brown Ale is now the USA and there are fears new owners will look to move production across the Atlantic to cut costs.

A special place in our hearts

IT IS one of the most famous brands in the world.

Brown Ale has always had a special place in the hearts of people living on Tyneside.

Formed in 1960, the S&N brewery was the result of a merger between Scottish Breweries and Newcastle Breweries.

And since then, the company has gone from strength to strength.

The company was part of the reason for Kevin Keegan’s first arrival on Tyneside in 1982 – paying some of his wages.

And it stayed with the club as sponsor until 1986.

And when Special K returned for a second spell it was involved again as the Blue Star logo was once again printed on the shirts from 1990 until 2000.

Former sales director of Newcastle Breweries during the 1980s, the late Alastair Wilson OBE, was credited with helping bring Kevin Keegan to Newcastle as a player and for his first stint as manager.

Its connection to the club ended last year when Mike Ashley took control and signed a deal with Carling, which has a four-year deal with them thought to be worth around £3m.

The brewery’s most famous brand is Newcastle Brown Ale, or "Dog".

The nickname comes from when men would tell their families they would be going out to "see a man about a dog" meaning they were going to the pub.

The beer last year celebrated its 80th birthday and is now enjoyed all over the world and is a symbol of Newcastle.

The drink is the number one imported ale in both America and Norway.

More than 220 million pints of Brown Ale were produced at Scottish and Newcastle’s Federation Brewery in Dunston – which was then exported to 40 countries.

The bottle was named as one of the most recognisable products in the country last year.

It was named one of the top 500 leading brands, compiled by global branding authority Superbrands.

The Newcastle arm of the company dates from the foundation of the John Barras brewery in 1770. Barras bought the Tyne Brewery in 1884 and launched Newcastle Breweries in 1890.

It then merged with Scottish Brewers and formed Scottish & Newcastle in 1960.

The company was the UK’s fifth- largest brewer in 1985, focusing on its main Scottish and North East markets, but rapid expansion saw it become the UK number one by 1995.

That year it doubled the scale of its beer business with the acquisition of Courage – bringing in brands including Foster’s, Kronenbourg and John Smith’s.

The brewery upset traditionalists at home in 2005 by closing the 150-year-old Fountain brewery in Edinburgh and the Tyne Brewery in Newcastle, moving production from the latter to Gateshead’s Federation Brewery.

Then, early last year, the bottling process at Federation Brewery was moved to North Yorkshire with a loss of 66 jobs.

 

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