UK: Scottish & Newcastle to close bottling plant

Scottish & Newcastle PLC has announced plans to close its bottling operation at its Dunston brewery in Gateshead from next month, with the loss of 66 jobs, AFX reported on January 10.

The closure follows a decision by the UK-based brewer to axe returnable Newcastle Brown Ale bottles for the pub trade and introduce non-returnable bottles as used for the off-trade and export sales.

Chris Jowsey, managing director of Newcastle Federation Breweries said packaging the brand in two types of bottle 'impacts negatively on cost and operational efficiencies' at the Dunston brewery. He added: 'No other national beer brand sold by S&N UK or its competitors is available in returnable bottles and, after reviewing the very positive feedback from our recent customer trial, we have concluded that it is no longer necessary or economically viable to supply Newcastle Brown Ale in returnable bottles.'

Newcastle Brown Ale will continue to be brewed at the site but the company confirmed plans to review kegging operations, where 22 staff is employed, at Dunston in the light of the bottling line closure.

A spokesman for the company said the kegging review would be complete within 6-8 weeks. He stressed there were no plans to move production of Newcastle Brown Ale, currently the only brand brewed at Dunston.

The bottling plant will close permanently on February 16, with bottling shifting to S&N's facility in Tadcaster.

S&N will consult with employees affected on the potential for redeployment within the broader business.

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