Carlsberg Marston’s Brewing Company plans to close the Banks’s brewery in Wolverhampton, affecting nearly 100 jobs.
- The closure coincides with the brewery’s 150th anniversary, as part of a strategic restructuring of Carlsberg Marston’s operations.
- Restructuring follows a £206 million deal where Marston’s sold its stake in the joint venture to Carlsberg.
- Declining cask ale volumes and Mahou San Miguel’s decision not to renew their partnership prompted the closure.
- Carlsberg Marston’s will invest over £6 million in other UK brewing sites to enhance production and capabilities.
Carlsberg Marston’s Brewing Company’s decision to close the Banks’s brewery in Wolverhampton is set to affect nearly 100 employees, amid a strategic restructuring of the company’s operations. This announcement marks an end to an era, as the brewery, known for its Banks’s Amber Bitter, Mild Ale, and Golden Beer, reaches its 150th anniversary. The closure is part of a broader restructuring plan by Carlsberg Marston’s, driven by declining cask ale volumes and the non-renewal of an exclusive partnership with Mahou San Miguel, a Spanish brewing company, beyond the year 2025.
This decision comes after a major financial move in July, when Marston’s divested its 40 per cent stake in Carlsberg Marston’s Brewing Company to focus on its pub business. The £206 million transaction with Carlsberg enabled Marston’s to realign its core business, centring its efforts on the management of its pub operations, including notable chains such as Pitcher & Piano.
In response to the impending closure, Carlsberg Marston’s stated their commitment to support the workforce impacted by these changes. They have pledged to work with trade unions and employee representatives to navigate the consultation process, aiming to mitigate the impact on the 97 employees based at the Banks’s site. Concurrently, the company seeks to bolster its presence in the beer market by increasing investment in its existing facilities located in Northampton and Burton.
Significant investments exceeding £6 million are planned for these sites; projects include the refurbishment of cask ale production lines and the enhancement of capabilities to craft contemporary ales. Carlsberg Marston’s aspires to develop the Marston’s Brewery in Burton into a national hub for traditional and craft beer production.
The closure has sparked concern among beer enthusiasts and organisations. The Campaign for Real Ale has described the decision as “devastating but predictable,” citing previous closures under Carlsberg’s purview. However, they acknowledged Carlsberg’s openness to proposals for continued brewing operations at the site, reflecting the heightened pressures from taxes and rising operational costs faced by global brewers.
The brewery closure exemplifies the impact of market pressures and strategic realignments in the brewing industry.
