Multinational brewer Scottish and Newcastle announced in February that it would be closing the historic Fountain Brewery at Fountainbridge, Edinburgh at the end of 2004 as part of a cost cutting drive. It will move production of McEwan 80/-, the only real ale now brewed there, to the Caledonian brewery. The deal will create a new ‘Caledonian brewing company’ and has been greeted with caution by CAMRA. S&N will take over off-trade and export sales of 2002 Champion Beer of Britain Deuchars IPA.

Production of Fosters and Miller lager brands will move to other breweries in the UK. McEwans has been brewed at Fountainbridge since 1856. S&N have blamed high fixed costs and low capacity for the move, which will result in a loss of 170 jobs. There had been rumours of a takeover bid but better financial results following the sale of its pub business last year have reduced this. The Transport and General Workers Union had condemned the move from Fountainbridge and has launched a Save our Scottish Beer campaign, arguing that the plant is still profitable.

CAMRA point out that S&N have a history of closing breweries, including the ‘sacrosanct’ Matthew Brown brewery in Blackburn, and Bristol’s famous Courage brewery more recently. There are also persistent rumours that S&N plans to cease brewing Newcastle Brown Ale in its Gallowgate brewery and move it to the Federation brewery in Gateshead. The Theakstons brewery in Masham was sold by S&N back to the Theakston family last year.

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