17/02/2004

170 jobs to go at Edinburgh brewery

One hundred and seventy jobs are to go following the closure of Scottish Courage Ltds Fountainbridge Brewery in Edinburgh.

Scottish Courage, whose parent company is Scottish & Newcastle, confirmed today that it will enter into "full consultation" with unions and employee representatives. It is anticipated that the closure, effective from December, will result in 170 job losses at the site.

Affected employees will be offered retraining, relocation opportunities within the group or redundancy compensation, the company said.

Scottish Courage – which markets brand names such as Foster’s, John Smith’s, Kronenbourg 1664, Strongbow, McEwan’s, Newcastle Brown Ale, Miller and Beck’s – said that it had been forced to take its decision to reduce costs in what has become a "mature and competitive UK beer market".

"There are a number of factors, including the Fountain Brewery’s high fixed operating costs, low capacity utilisation, and City centre location which combine to mean that continued production from the site is no longer commercially viable," a company spokesperson said.

John Dunsmore, Chairman and Managing Director of Scottish Courage Limited, said: “As part of the ongoing review of the UK business, we investigated a range of options to allow us to keep the Fountainbridge Brewery open. Unfortunately, none of these options proved viable and it is with regret that we announce today our intention to close the brewery at the end of this year.

“Our Fountainbridge employees have made a significant contribution to the company and our priority is to support them fully over the coming months.”

Production of the McEwan’s ale brands will remain in Scotland, and will be brewed in Edinburgh at the Caledonian Brewery. Lager production will be transferred to other Scottish Courage breweries in the UK.

Scottish Courage also announced today that it has entered into an agreement with the Caledonian Brewery Limited, to acquire a brewery in Slateford Road, Edinburgh.

Jobs at the former Caledonian Brewery will not be effected.

(gmcg)

Related Northern Ireland Business News Stories
Click here for the latest headlines.

06 July 2004
Jobs under threat as brewery put up for sale
Sinn Féin President Gerry Adams has expressed anger at the news that a major west Belfast brewery is to be put up for sale, with the potential loss of 80 jobs. Interbrew said the decision to put the Bass Brewery up for sale had been taken following the ending of a long-term contract to bottle soft drinks at the plant.
31 October 2014
Brewery Announced For L'Derry
A new brewery has been announced for the city of L'Derry by urban regeneration company Ilex. The new craft brewery will be located in Building 70 at Ebrington Square. The Walled City Brewery is being headed by local man James Huey, who has 12 years experience in the industry.
04 June 2018
Walled City Brewery To Develop New Craft Beer
Walled City Brewery, located in L'Derry's new cultural quarter Ebrington Square, has been assisted by Invest Northern Ireland to develop a new craft beer. Master Brewer, James Huey used an Invest NI £5,000 Innovation Voucher to develop the recipe for its '1689' Mumm ale, which comes from a recipe dating back to the Siege of Derry.
03 July 2017
Hillstown Brewery Secures Listing With Tesco NI
Hillstown Brewery has announced it has secured a listing with Tesco Northern Ireland that will see the retailer stock an extended range of its handcrafted beer in stores across the province, with sales of more than £90K forecasted for the first year.
14 January 2016
Comber Firm Announces Expansion Plans
Farmageddon Brewery Co-Operative Limited, based in Comber, is investing over £100,000 as part of a two year expansion plan. The firm produces a range of unpasteurised and unfiltered ale and has recently invested in new brewing equipment as part of its continued growth.