A historic Black Country brewery will close next year, risking 100 jobs.
- Carlsberg Marston’s is restructuring, closing Banks’s brewery in Wolverhampton.
- The decision follows Marston’s sale of its stake in the joint venture to Carlsberg.
- Mahou San Miguel’s non-renewal and cask ale decline influenced the closure.
- Carlsberg will invest in other UK sites despite the restructuring.
In a significant development for the local brewing industry, Carlsberg Marston’s Brewing Company has announced the closure of Banks’s brewery, located in Wolverhampton, putting nearly 100 jobs at risk. This decision comes in the same year the brewery marks its 150th anniversary, a noteworthy milestone for an establishment that began its operations in 1875 and is known for producing Amber Bitter, Mild Ale, and Golden Beer.
The closure is a consequence of Carlsberg Marston’s decision to restructure its brewery network. This move succeeded Marston’s sale of its 40 percent stake in the Carlsberg Marston’s Brewing Company joint venture to Carlsberg last July. The transaction, valued at £206 million, strategically shifted Marston’s focus from brewing toward enhancing its pub operations, including establishments like Lost & Found in Birmingham and the Pitcher & Piano chain across the UK.
A statement from Carlsberg Marston’s highlights that this restructuring was partly prompted by Mahou San Miguel’s choice not to renew a long-standing exclusive license agreement beyond 2025, coupled with a prolonged decline in the volume of cask ale sales. Carlsberg Marston’s has committed to supporting impacted employees across its network, including the 97 staff at Banks’s Brewery, throughout the consultation process in collaboration with trade unions and colleague representatives.
Despite the brewery’s closure, Carlsberg Marston’s is set to increase its investment in breweries located in Northampton and Burton. A significant investment exceeding £6 million will be directed towards new projects at the Burton plant, which includes refurbishing its cask ale line to bolster the production of traditional British ales and contemporary craft ales. Additionally, the company plans to develop a logistics depot in the Black Country to enhance its secondary supply network.
Paul Davies, the company’s chief executive, acknowledged the tough decisions faced by the firm due to the challenging UK beer market. He emphasized addressing significant excess capacity within the brewery network as a crucial step for maintaining competitiveness. The decision was also influenced by external economic pressures, such as high taxation on beer and rising energy and raw material costs.
The closure of Banks’s brewery marks a significant shift within Carlsberg Marston’s brewing strategy amid ongoing market challenges.
