Carlsberg Marston’s Brewing Company (CMBC) has revealed that it wants to close its Banks’s Brewery in Wolverhampton in Autumn next year as part of a restructuring of its network.
The group noted that the proposed restructuring was in response to the recent decision by Mahou San Miguel not to renew its licence partnership from 2025 and the decline of cask ale volumes over several years.
CMBC stated that it will be supporting staff across its wider network impacted by the proposal, including the 97 employed at Banks’s Brewery.
As part of the network restructuring, CMBC plans to increase investment in its breweries in Northampton and Burton, with a long-term ambition to establish Marston’s Brewery in Burton as a national centre for craft beer and traditional ale brewing in the UK.
CMBC will be investing more than £6m in new projects at its brewery in Burton, including the refurbishment of its cask ale line to brew traditional British ales, as well as developing the brewery’s capabilities for brewing innovative, contemporary craft ales.
In addition, as part of CMBC’s long-term logistics strategy, the business will be investing in a new logistics depot in the Black Country region to support its nationwide secondary logistics network.
Paul Davies, CEO 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.
“While the proposed closure of our Wolverhampton brewery is very regrettable, with the significant investments we are making in our Northampton and Burton breweries, our strong portfolio of brands and industry-leading logistics network, CMBC will continue to deliver for our customers and focus on long-term growth.”
