image

Nov 2016 e-magazine

08.11.2016
Malta's Simonds Farsons Cisk targets international growth ...
read more
image

Craft brewing: Italy’s Le Baladin

08.11.2016
One of the original rock stars of Italian craft, has big ambitions ...
read more

More Features >

image

Three buses

04.02.2016
Genuine marketing innovations are rare - here's three to start '16...
read more
image

20:20 vision: take the over

14.12.2015
Craft beer growth is unstoppable unless definition concerns trip it up...
read more

More Opinions >

Home | News | Breweries | Molson Coors to close UK brewery

Molson Coors to close UK brewery

Font size: Decrease font Enlarge font
image
Consultation with workers at Manor Park brewery underway

Overcapacity looms with loss of Heineken contract

The repercussions are beginning to be felt for Molson Coors’ British brewing network with the imminent loss of contract brewing volumes for Heineken UK. 

The company announced at the end of November to its workforce at the Manor Park brewery in Alton, Hampshire that it plans to close the brewery at the end of May 2015. 

It is now entering into a period of collective consultation with employees at the site, to identify alternative proposals for the site and to mitigate job losses. The consultation involves 108 employees.

Molson Coors added that to date it has been unable to find alternative replacement volume. According to a company spokesperson, for the past seven years production on behalf of Heineken has equated to 75% of Manor Park’s production. The balance has been comprised of Molson Coors’ brands – namely Carling, Grolsch and Coors Light.

Manor Park has an annual capacity of 2.6 million hectolitres and has been running close to maximum capacity in recent years. It has been a keg beer only brewery.

Molson Coors has been aware of a looming overcapacity issue across its three industrial scale breweries, in Burton-on-Trent and in Tadcaster, North Yorkshire, following notification from Heineken that it intended to terminate its contract brewing arrangement with the expiration of the current agreement in April 2015.

Total volumes that have been brewed on behalf of Heineken are estimated at between two and three million barrels annually. In advance of the end of the contract brewing agreement, the Dutch brewer has been investing to modernise and expand Royal, its brewery in south Manchester.

Molson Coors is currently completing a five-year, £75 million redevelopment of the Burton Brewery. The last year’s work concerns modernisation of the fermentation and filtration functions in the north brewery. These projects follow on from a £21 million investment in a high-speed KHS supplied bottling line.

In contrast, recent investment at both Alton and Tadcaster has been minimal. Asked if Tadcaster was to begin a similar consultation process, the Molson Coors spokesperson commented, “Tadcaster continues to operate as business as usual.”


 

Rate this article
2.50