UK: Fountain Brewery closed after 150 years of history

Scottish and Newcastle (S&N) closed its Edinburgh's brewery on June 30, ending 150 years of operations in the city. S&N said it had to shut the Fountain Brewery because of over capacity in the UK and fierce competition in the beer market. Since the brewery's closure was announced last year, about 170 staff have lost their jobs. When they announced the closure plan S&N said the changes would lead to annual savings of about £10m.

Scottish and Newcastle, which produces Kronenbourg and Foster's beers in the UK, argued that it did not make economic sense to keep it open. Most of the redundant workforce have found other work or training, with 30 moving to the smaller Caledonian Brewery along the road. This means the McEwans brands will still be made in Scotland but the bulk of beer production has moved south to Yorkshire.

Instead, the 16 staff left to finish their shift for owners Scottish & Newcastle will spend the day doing paperwork and tidying up. The firm said on June 30 that the workers will ensure the giant machines are properly turned off to allow contractors into the brewery tomorrow to begin dismantling the equipment.

Much of the machinery will be sold off to breweries around the world, including in Eastern Europe and Africa, to continue making beer. The decommissioning work is expected to be carried out by the end of the year to allow the redevelopment of the site to start.

Brewing manager Dave Benger, 36, of Elbe Street, Leith, will flick the final switch and bring an era to a close.

A spokesman for S&N said: "We're not having anything to mark the occasion as most of the workers have already held their leaving dos and other things. It's very much business as usual but I'm sure they will go out for a few pints afterwards.

S&N has bought the Caledonian Brewery on Slateford Road, where it is transferring production of its McEwan's ales. But the shutdown of the Fountainbridge brewery has taken place in stages and its full closure has been delayed until the production capacity of the Slateford Road site was doubled.

The Fountainbridge brewery, a prime city centre development site, is expected to attract a huge amount of interest when it goes on the market. Around eight acres of land is to be sold off and experts believe S&N could net upwards of £60 million from the sale of the land because of its key city centre location.

The S&N spokesman added: "It's in the hands of the city council but we are in discussions with them over a planning brief for the area. We hope the development will be something quite exciting for the people of Edinburgh."

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