Tetleys nears bitter end

Nov 6 2008 by Alastair Gilmour, The Journal

Another day and, it seems, another major brewery closure is announced. Alastair Gilmour follows the Tetley trail.

INTERNATIONAL beer giant Carlsberg has announced plans to close its historic Tetley brewery in Leeds with the loss of 170 jobs. The company blamed falling consumption and higher duties for the decision to shut the operation by 2011.

The news will be greeted with the same sadness, although probably less surprise, as that of the closure of the Tyne Brewery in Newcastle by Scottish & Newcastle three years ago, shortly after the company had dispensed with its 1,400-strong pub chain.

Not so long ago, if there was only one word allowed to describe British beer it would be “diversity”, but that view has come increasingly under scrutiny with an estimated 30 breweries having closed in the last decade.

British beer was once, and should be, as varied and wide-ranging as the nation’s contrasting geographical features, its contrary weather patterns and its precious cultural heritage. But a chill wind is blowing through the licensed trade at every level.

Fewer people are going to pubs, which are closing at an estimated 35 a week, cheap supermarket beer promotions have taken hold and the no-smoking law remains controversial. The credit crunch is biting at disposable incomes with people fearing for their jobs.

Nick Webb, supply chain director of Carlsberg UK, said: “We have to consider difficult decisions to remain competitive in the current environment. Although the business has remained robust in tough conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future.”

Only six months ago Scottish & Newcastle was swallowed up by Carlsberg and Heineken, three years after transferring production of beers including Newcastle Brown Ale to the Federation Brewery in Dunston, Gateshead, with the loss of some 120 jobs. The Tyne Brewery site is now to be the centre of a £700m plan to bring science-based industries to Newcastle.

There has been a Tetley brewery in Leeds since 1822; it now produces the respected Tetley range of cask-conditioned ales plus Carlsberg Lager and is one of two owned by the Danish giant. Its other is in Northampton.

Martin Hammill, head brewer at Hadrian & Border in Byker, believes that even though Tetley is a giant brewery, the inroads micro-brewers such as themselves are making into the on-trade are having an effect.

He said: “The last time I went round the Tetley brewery they were brewing 800 barrels (28,800 gallons) six times a day, seven days a week. We’re an awful lot smaller than them, but there are enough of us around the country now to eat into their market.”

Carlsberg said the Tetley brand was not under threat from the brewery closure and that it was looking at other options to brew in Yorkshire.

But the Campaign For Real Ale (Camra) immediately attacked the decision to close the plant, which it describes as the largest real ale brewery in the world. It also criticised Carlsberg for failing to promote Tetley beers as consumer interest in real ales is growing.

Bob Stukins, Camra vice-chairman and director of brewery campaigning, said: “It is unclear where Carlsberg UK intends to brew the famous Tetley beers. If brewed outside their Leeds heartland, I fear they would lack the provenance which today’s discerning consumers expect.

“While we recognise the enormous challenges facing the brewing industry at present, I think this is a shortsighted decision. Recent statistics clearly show that real ale is performing better than other beer styles in a declining market.

“This iconic Yorkshire brewery should not close due to the development potential of this city site.”

GLASS HALF FULL

A REPORT on the real ale sector recently showed sales moving towards growth while the overall beer market declined by 8% in the year to last May.

Coincidentally, sales of traditional beer sold through the Society of Independent Brewers increased by 8% in the first half of 2008.

The figures come from the group’s direct delivery scheme which makes locally-brewed beers available to licensees of major pub companies, supermarkets and off-licences.

Sales from 352 brewers delivering to 3,000 pubs increased by an average 8% a pub in the six months to last June compared with the same period in 2007.