01 March, 2006

UK: The historic Gale brewery planned to be closed with the loss of 21 jobs

Brewer and pub operator Fuller Smith & Turner (FST) announced on February 27 it is planning to close the 150-year-old George Gale brewery in Hampshire at the end of March, with the loss of 21 jobs, and move production to west London, according to Business Telegraph.

Michael Turner, chief executive of Fuller's, said a "prohibitive amount of money" would have been needed to update the Gales brewery to the company's standards. It has invested more than £17m in its own Chiswick brewery over the past six years. He said 21 jobs would be lost at the site in Horndean, Hampshire, but 39 workers would remain.

Fuller's said that the main Gales brands - HSB, Butser, Festival Mild and Prize Old Ale - will be brewed at the Fuller's site in Chiswick. However, Gales Bitter will be discontinued. Mr Turner added: "Sales of Gales Bitter have been decimated since we introduced London Pride to Gales pubs."

He said part of the Horndean site would still be run as a warehouse and distribution centre but said the two parts of the brewery were separate and the other half could potentially be sold off. Fuller's had not yet made any plans for that part of the site, he added.

Fuller's said it expected cost savings of about £3m by taking out duplicated functions and the benefits of scale. Mr Turner said: "Clearly everybody would love the country to be full of craft brewers but gradually the number is dwindling. "If we don't brew Gales' brands here [in Chiswick], they would have been in severe danger of disappearing altogether. There is more chance of the history carrying on under Fuller's than there might be otherwise."

Fuller Smith & Turner fell 1 to £11.27½.

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