Heineken UK has announced plans to shut down the historic Caledonian Brewery in Edinburgh, which has been operational since 1869.
The Caledonian and is the last major brewery in Edinburgh, and Heineken took over its operations in 2008 following the Scottish & Newcastle acquisition.
Heineken said it has agreed in principle with Greene King to continue brewing Caledonian’s brands, including Deuchars and Maltsmiths, at its Belhaven brewery in Dunbar. Over the next few weeks, it will also consult with the 30 staff who work at the brewery, during which time the site will continue to function.
Matt Callan, Supply Chain Director for Heineken UK said: “We’ve not taken this decision lightly – we’re acutely aware of what the brewery represents in Edinburgh, and its role in the history and heritage of brewing in Scotland – this is something we’re incredibly proud of. The sad fact is, its Victorian infrastructure means significant inefficiencies and costs, particularly as it is operating below capacity. To modernise the brewery, and to meet our own sustainability commitments, would require considerable ongoing investment, which would make operating the brewery economically unviable.”
Matt Starbuck, Greene King’s Brewing and Brands Managing Director, added: “These brands are long loved in both Scotland and beyond and we are proud to be able to continue to brew them so they can be enjoyed by consumers and customers alike. This agreement underlines our commitment to Belhaven Brewery as Scotland’s oldest working brewery, and boosts our portfolio of already award-winning beers.”
NAM Implications:
- Inevitability of the post-Lockdown cash-focus of many surviving companies, supply and retail.
- Any asset not delivering will be up for scrutiny.
- Best tackled…
- …before someone does it on your behalf.
