Carlsberg Marston’s Brewing Company plans to close the historic Banks’s Brewery in Wolverhampton, putting nearly 100 jobs at risk. This decision marks a significant shift in the company’s operations.
End of an Era for Banks’s Brewery
In its 150th year, the historic Banks’s Brewery in Wolverhampton faces closure, threatening nearly 100 jobs. The site, known for producing traditional ales such as Amber Bitter and Golden Beer, will cease operations by next autumn. The decision is a part of Carlsberg Marston’s plan to restructure its brewery network after the sale of Marston’s stake in the joint venture.
Strategic Restructuring Underway
The restructuring decision comes in response to significant changes within the company and the broader beer market. A recent £206 million deal saw the sale of Marston’s 40 per cent stake to Carlsberg, enabling Marston’s to shift its focus towards pub operations. The decision has been influenced by the end of a long-term partnership with Mahou San Miguel and a decline in cask ale sales over the years.
Paul Davies, Chief Executive, stated, “This has been an extremely difficult decision, but necessary to maintain competitiveness in a challenging market. Significant excess capacity must be addressed due to the end of agreements and market demand shifts.”
Investment in Future Brewing Facilities
Carlsberg Marston’s plans to invest over £6 million in its sites at Northampton and Burton. The aim is to enhance the brewing facilities, particularly at the Burton plant, which is set to become a national centre for craft beer and traditional ale brewing.
Investments will also include refurbishing the cask ale line and developing facilities for modern craft ales. The strategy highlights the company’s commitment to adapt to changing market preferences while preserving traditional brewing crafts.
A new logistics depot in the Black Country will support the distribution network, further solidifying the company’s logistical capabilities and market reach.
Market Challenges and Opportunities
The closure is reflective of wider market pressures where even major brewers face challenges due to high taxation, and increasing costs for energy and raw materials. Consumer body, the Campaign for Real Ale, considers the closure ‘devastating but predictable’ given the market circumstances.
Ash Corbett-Collins from the Campaign expressed concerns about job losses and the threat to cask beer production. However, he acknowledged Carlsberg’s openness to offers for continued brewing operations at the site.
Despite the setbacks, there is potential for positive development through strategic acquisition and investments, aiming to retain brewing heritage while modernising production.
The Role of Unions and Employee Support
Carlsberg Marston’s has pledged to support employees affected by the closure, working closely with trade unions and representatives through the consultation process. Approximately 97 employees face uncertainty, but the company is committed to assisting them during this transition.
Support strategies include exploring redeployment opportunities and providing resources for career transitions. Trade unions will play a critical role in negotiating fair terms for those impacted.
The company aims to ensure transparency and effective communication, recognising the dedication and contribution of the Banks’s Brewery staff throughout this challenging period.
Future Prospects for the Brewery Site
There remains a possibility that the Banks’s Brewery site could continue operations under new ownership. Carlsberg Marston’s openness to sell for continued brewing operation suggests a chance to preserve the historic site.
This development could attract investors interested in traditional brewing, potentially safeguarding jobs and maintaining Ale production.
Such an outcome would align with industry trends towards craft and local breweries, allowing for a blend of historical significance and modern brewing methods.
The closure of Banks’s Brewery reflects broader industry challenges and strategic changes for Carlsberg Marston’s. As the company supports its workforce, there remains hope for the brewery’s continued legacy through prospective new ownership.
