Scottish & Newcastle has announced it will close its historic Tyne Brewery in Newcastle next year. The decision comes just three months after it shut down its Edinburgh-based Fountain Brewery.
Scottish Courage also announced that it has bought the Federation Brewery and will consolidate brewing at the Dunston site.
John Dunsmore, Chairman and Managing Director of Scottish Courage, said: “Both breweries have been operating below industry standards of capacity and efficiency. By joining forces, Scottish Courage and The Federation are able to preserve a home on Tyneside.”
Production of Newcastle Brown and other ale brands will remain on Tyneside, while production of other Scottish Courage brands will transfer to Tadcaster.
Great Britain’s beer consumer group, the Campaign for Real Ale, wasn’t impressed and attacked the decision as beer has been brewed at the site for well over 100 years.
“The loss of thebrewery is a blow and represents another nail in the coffin for the British brewing industry. S&N is now very much a global company, but its roots lie in Newcastle and they would do well to remember that,” said John Holland, CAMRA’s Brewing Industry Director.
Holland added, “It will be interesting to see if S&N change their name, as ‘Not Scottish & Near Newcastle’ would now be more accurate, or maybe just ‘&’. The famous Newcastle Brown Ale is brewed at the Tyne Brewery and has protected geographical indication status from the European Commission, so it
cannot be brewed outside of Newcastle. If the beer is to be brewed at Federation in Dunston, Gateshead, it does somewhat undermine the brand and local consumers will care about that.”