Plans to close Wolverhampton historic brewery described 'devastating but predictable'
CMBC has announced it proposes to close the historic Chapel Ash site in the autumn of next year.
The national chairman of the Campaign for Real Ale (Camra) has described the planned closure of Wolverhampton's Banks's Brewery as "devastating but predictable" news for British brewing.
The Carlsberg Marston's Brewing Company (CMBC) announced on Monday that it proposes to close the historic Chapel Ash site - which opened in 1875 - in the autumn of next year.
CMBC, which bought out pub operator Marston's remaining stake in the former joint venture in July for around £206 million, said the restructuring plan was a response to a decision by Mahou San Miguel not to renew its long-term exclusive licence partnership from 2025, and the decline of cask ale volumes over several years.
In a statement, the chairman of Camra, Ash Corbett-Collins, said: "This is devastating but predictable news from CMBC.
"Following the buyout of CMBC by Carlsberg - essentially turning Marston's brewing business into a globally owned brand - we expected news like this sooner rather than later."
Mr Corbett-Collins added: "However, we do welcome the news that Carlsberg are open to offers for purchase of the site for continued brewing operations.
"The brands brewed by CMBC at Banks's must continue to be brewed at the Marston's brewery (in Burton) - their loss would be tragic for consumer choice and British beer.
"This also demonstrates the huge pressures that even global brewers are facing from the high taxation of beer, energy and raw material costs.
"These pressures are even more extreme for independent brewers, who have the added barrier of restricted access to the pub market, which is why it's essential that the Government uses the upcoming Budget to support the pub and brewing industries."
In its statement, CMBC said it was supporting colleagues across its wider network impacted by the proposals, including the 97 employees at its Wolverhampton brewery.
As part of the network restructuring, CMBC will increase investment in its breweries in Northampton and Burton, with the long-term aim of establishing Marston's Brewery in Burton as a "national centre for craft beer and traditional ale brewing in the UK".
CMBC will invest more than £6 million in significant new projects at its brewery in Burton, including the refurbishment of its cask ale line, and invest in a new logistics depot in the Black Country region.
Paul Davies, chief executive of CMBC, said: "This has been an extremely difficult decision, however it has been necessary to restructure our business to maintain our competitiveness in a challenging UK beer market.
"The hard reality is that, because of the current climate for ale and Mahou San Miguel's decision not to renew its exclusive production and distribution agreement with CMBC from the start of next year, we will have significant excess capacity across our brewery network which we have to address.
"The team at Banks's has been unwavering in its dedication and commitment to the brewery. We will ensure that we support all our people closely throughout this extremely challenging period."