Post by Patrick on Oct 14, 2009 9:48:30 GMT
Another property developer brewery kills off another brew. For reasons of greed and profit alone.
For the first time in its 82-year history Newcastle Brown Ale will no longer be brewed on Tyneside as owners Scottish & Newcastle said yesterday it was closing the Federation brewery in Gateshead and moving production to Tadcaster, North Yorkshire. S&N is owned by Heineken.
The closure of the site will result in 63 job losses with cuts at other Heineken plants in the UK leading to a further 100 jobs going over two years. The company blames falling beer sales of about 5% a year. Newcastle Brown Ale sales are down about 7% and brewing at the Federation site has been running at only 60% of capacity.
The bottled beer with its blue star label, left, first went on sale in 1927 and was brewed next to St James' Park football ground in Newcastle until 2005.
The day after "Broon's" launch, it was said the local police appealed to the brewery to make it weaker because the cells were full of drunks. The ale was also dubbed "dog" by drinkers, as they would make the excuse of going to "walk the dog" when going to the pub.
The closure comes five years after S&N bought the Northern Clubs Federation Brewery for £7.2m, controversially shifting production from its Tyne Brewery, located two miles north across the river, allowing the Newcastle town centre site to be shut and the valuable property to be sold off.
At the time, S&N UK managing director John Dunsmore, who has since left, said the decision to move only as far as Gateshead had been taken "to protect the integrity of the [Newcastle Brown Ale] brand". It was nevertheless embarrassing for the company because the ale traded off its Newcastle provenance, even securing protected status under EU rules designed to ensure the geographical integrity of goods. S&N was forced to request this protected status be lifted because of the move to Gateshead.
Funny how they've seen a 5% drop in sales - yet across the country Real Ale sales are up and small breweries are booming.
For the first time in its 82-year history Newcastle Brown Ale will no longer be brewed on Tyneside as owners Scottish & Newcastle said yesterday it was closing the Federation brewery in Gateshead and moving production to Tadcaster, North Yorkshire. S&N is owned by Heineken.
The closure of the site will result in 63 job losses with cuts at other Heineken plants in the UK leading to a further 100 jobs going over two years. The company blames falling beer sales of about 5% a year. Newcastle Brown Ale sales are down about 7% and brewing at the Federation site has been running at only 60% of capacity.
The bottled beer with its blue star label, left, first went on sale in 1927 and was brewed next to St James' Park football ground in Newcastle until 2005.
The day after "Broon's" launch, it was said the local police appealed to the brewery to make it weaker because the cells were full of drunks. The ale was also dubbed "dog" by drinkers, as they would make the excuse of going to "walk the dog" when going to the pub.
The closure comes five years after S&N bought the Northern Clubs Federation Brewery for £7.2m, controversially shifting production from its Tyne Brewery, located two miles north across the river, allowing the Newcastle town centre site to be shut and the valuable property to be sold off.
At the time, S&N UK managing director John Dunsmore, who has since left, said the decision to move only as far as Gateshead had been taken "to protect the integrity of the [Newcastle Brown Ale] brand". It was nevertheless embarrassing for the company because the ale traded off its Newcastle provenance, even securing protected status under EU rules designed to ensure the geographical integrity of goods. S&N was forced to request this protected status be lifted because of the move to Gateshead.
Funny how they've seen a 5% drop in sales - yet across the country Real Ale sales are up and small breweries are booming.
