Will it be time called?
Jan 26 2008 by Paul James, The Journal
FEARS were raised last night that Newcastle Brown Ale production could be moved out of Tyneside after Scottish & Newcastle bosses agreed a takeover bid from rivals Heineken and Carlsberg.
The £7.8bn deal, announced to the Stock Exchange yesterday, will end 259 years of independence for S&N, which will be carved up by its continental suitors.
Union leaders spoke of their worries that the company’s 200 remaining jobs in the North-East would be lost, and called for an urgent meeting with Carlsberg and Heineken.
Bosses at S&N are unanimously recommending the 800p-a-share offer is accepted, which is 80p more than its first offer in October last year.
But the announcement, which follows an EU ruling last year that Brown Ale can be brewed elsewhere, sparked fears that it would leave S&N’s Federation Brewery altogether. Iain MacLean, of the Unite union said: “The takeover talks have been a hard battle and Scottish and Newcastle have finally succumbed. It will result in a period of uncertainty for the workforce and we are primarily concerned about the implications for UK jobs.
“We have a meeting with Scottish & Newcastle next week and we will be looking for Carlsberg Heineken to guarantee the security of our members’ jobs.”
In the announcement yesterday, Jean-François van Boxmeer, chairman and CEO of Heineken, which will take over S&N’s UK operations, briefly mentioned jobs. He said: “I look forward to welcoming the Scottish & Newcastle employees into our business and learning from their unique experience and skills.”
The deal also raised concerns from the Campaign for Real Ale (CAMRA) over consumer choice and the future of S&N’s real ales. Bob Stukins, director of breweries campaigning, said: “This is a sad day for British brewing. S&N was the last remaining major brewer in British hands and the deal is unlikely to show any benefits for consumers.” Newcastle Central MP Jim Cousins said: “There is very little brewing left on Tyneside. One of my concerns is the future of Newcastle Brown Ale. Last August, the company successfully broke the link between the ale and city under European Union Law which I deeply regretted. This means that Newcastle Brown could be brewed anywhere. I fear that one result of this takeover will be that sooner or later Newcastle Brown Ale will be brewed abroad.”
Tyne Bridge MP David Clelland said: “We need an assurance from the company’s new owners that Newcastle Brown will continue to be brewed on Tyneside because if it is not, it will lose all its credibility.”
