Banks’s Brewery closure threatens almost 100 jobs

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The closure of Banks's Brewery threatens the jobs of almost 100 employees. Image: Getty, Monty Rakusen (Getty Images)

Almost 100 jobs are at risk at Banks’s Brewery in Wolverhampton, after owner Carlsberg Marston’s Brewery Company (CMBC) announced plans to close the site next year.

The closure is part of a proposed restructuring of the business by drinks giant in response to Mahou San Miguel’s decision not to renew its long-term licence partnership from 2025 and a decline in cask ale volumes over several years.

CMBC said it would support colleagues across its wider network who would be impacted by these proposals, including the 97 members of staff at Banks’s Brewery, and will work with trade unions and colleague representatives throughout the consultation process.

Difficult but necessary

Paul Davies, chief executive 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.”

Brewery investment

As part of the network restructure, CMBC will 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.

A £6m investment into new projects at the Burton brewery will support the refurbishment of its cask ale line to brew traditional British ales, as well as developing the site’s ability to brew contemporary craft ales.

Davies added: “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.”

Meanwhile, Bakkavor has proposed the closure of a manufacturing site in Wigan, putting 750 jobs at risk.