Row brews over future of Newcastle Brown Ale

Oct 15 2009 By William Green, The Journal

BREWERY bosses are coming under pressure from Parliament to keep the production of Newcastle Brown Ale on Tyneside.

Scottish and Newcastle (S&N) has sparked fury with its plans to close its brewery in Dunston, Gateshead, next year with the loss of 63 jobs.

The company, owned by Dutch brewing giant Heineken, wants to switch production to its John Smith’s plant in Tadcaster, West Yorkshire.

Newcastle Brown Ale has been brewed in Dunston for the past four years after the former Tyne brewery in Newcastle shut.

That move led to the ending of a European Protected Geographical Indication Order, which meant Brown Ale could only be brewed in Newcastle – although at the time the firm insisted production would stay in the North East.

But S&N has immediately faced calls to rethink its decision on Tuesday, with MPs weighing in with a Commons motion calling for Newcastle Brown Ale to stay on Tyneside.

Tyne Bridge’s David Clelland has tabled the motion, which already has the backing of Blaydon MP Dave Anderson and Newcastle Central’s Jim Cousins.

The motion says they are "gravely concerned" at the impending closure the Gateshead brewery, the loss of over 60 jobs and damage to the local economy.

Noting it means the ale will no longer be brewed on Tyneside, the motion "considers the resultant loss of credibility of the brand name to be detrimental to the future sales of the company’s top selling products and one of the country’s major exports".

MPs are now calling on S&N to reverse its decision in the "interests of employees, the local and national economy and the company itself".

Speaking to The Journal, Mr Clelland said: "I am concerned about the decision they have taken, which is going to affect 63 members of staff at the brewery and other people who service the brewery.

"I am also concerned about the lack of loyalty to the people of Tyneside given the fact that we all rallied around when there was a threatened takeover by Fosters. And this is the thanks we get."

He added: "I realise I am not going to appeal to their finer instincts on this issue, but perhaps I can appeal to their business instincts because what they are going to do will seriously damage the brand Newcastle Brown Ale and it will no longer be Newcastle Brown Ale in fact."

Sales in America could be hit despite S&N "thinking they will be able to get away wit it," the Tyne Bridge MP said.