Historic city brewery set to close after 150 years in ‘devastating’ blow

A HISTORIC city brewery with a legacy spanning 150 years is set to close, putting 97 jobs at risk.

The Carlsberg Marston’s Brewing Company (CMBC) has confirmed plans to close Wolverhampton’s Banks’s Brewery.

The historic Chapel Ash site – which opened in 1875 – could shut for the final time in the autumn of next year.

CMBC blames a decline in cask ale volumes and Mahou San Miguel’s decision not to renew its licence partnership from 2025.

The site’s planned closure doesn’t automatically mean the end of Bank’s branded beer.

For now, customers can still enjoy the tipple as usual.

However, it remains unclear if production will continue at another facility after the Bank’s brewery shuts down.

CMBC did retain the Hobgoblin brand by moving production to a new facility following the closure of its Wychwood Brewery last November.

Campaign for Real Ale (Camra) has demanded that Banks’s beer must continue to be brewed at the Marston’s Brewery site in Burton.

In its statement, CMBC said it was supporting colleagues across its wider network impacted by the proposals, including the 97 employees at its Wolverhampton brewery.

Paul Davies, chief executive of CMBC, said: “This has been an extremely difficult decision, however it has been necessary to restructure our business to maintain our competitiveness in a challenging UK beer market.

“The team at Banks’s has been unwavering in its dedication and commitment to the brewery. We will ensure that we support all our people closely throughout this extremely challenging period.”

As part of the network restructuring, CMBC will increase investment in its breweries in Northampton and Burton, with the long-term aim of establishing Marston’s Brewery in Burton as a “national centre for craft beer and traditional ale brewing in the UK”.

CMBC will invest more than £6 million in significant new projects at its brewery in Burton, including the refurbishment of its cask ale line, and invest in a new logistics depot in the Black Country region.

Mr Corbett-Collins, the national chairman of the Camra has described the planned closure as “devastating but predictable” news for British brewing.

In July, Carlsberg announced plans to buy out UK pub-group Marston’s from their CMBC venture in a deal worth £206million.

CMBC proposed Bank’s brewery closure isn’t the first in recent years.

Last year, it closed the world-renowned Wychwood Brewery – famed for Hobgoblin Ale.

The factory in Witney, Oxfordshire, shut in November 2023.

Its six staff – who had a combined 100 years of brewing experience.

Hobgoblin ales, as well as Wychwood brands Firecatcher and Dry Neck beers, are now brewed at CMBC’s other sites.

The drinks giant also closed Ringwood Brewery and shop at the start of the year, saying there was “no viable path forward”.

The Temperance Street Brewery in Manchester shut up shop last year after more than a decade of trading.

The tap room, located on the outskirts of the city centre, closed less than a year after it was taken over by new owners.

It was put up for sale after the firm said its location in a residential area made expansion a challenge, but no buyer was found.

COST OF LIVING PRESSURES

The number of craft breweries in the UK fell from 1,828 at the start of 2023 to 1,815 at the start of the year.

That now stands at 1,748 according to the latest figures up to June from the Society of Independent Brewers and Associates (SIBA).

The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses.

Craft breweries have been hit hard by the cost of living crisis and the pandemic.

While many producers pivoted to home deliveries during covid lockdowns, they were then hit by rising costs combined with people reigning ion their spending.

The prices of energy, rents and ingredients have all shot up. They have also faced higher interest rates when borrowing money to grow the business.

SIBA chief executive Andy Slee said when the latest figures on closures were published in July: “Independent brewers are reporting good sales growth and strong consumer demand, yet breweries continue to close.

“For most breweries the challenge is financial pressures from rising costs and market access, as well as lingering Covid debt – something SIBA has strongly lobbied Government for help on.”

The Campaign for Real Ale’s (CAMRA) warned about the pressures on the drinks business this week as it published its Good Beer Guide 2025.

It said that many of the breweries that featured in last years guide have now closed and cited a “perfect storm” ofthe tax burden, few viable routes to market and stubbornly high energy bills among the factors.

CAMRA Chairman Ash Corbett-Collins said: “This year’s edition of the Good Beer Guide shows a brewing trade that continues to face huge challenges, but one that beer and pub lovers across the UK are still rallying behind.

“CAMRA will be lobbying this new Government to show their support for independent breweries, to try and ensure that the Good Beer Guide 2026 is brimming with new establishments.”

As well as CMBC’s closure of Wychwood and Ringwood, it said the loss of Elland Brewery just months after its 1872 porter was crowned CAMRA’s Champion Beer of Britain 2023 and the award-winning Nottingham-base Navigation Brewery was “tragic” and a blow for the local community.

Last week, The Fourpure brewing company was placed into administration to “protect itself from market pressures”.

Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.

It doesn’t necessarily mean the end of the business.

Instead, administrators will try to help a company find ways to repay debts or solve its cashflow problems.

Its beers, such as Pomegranate IPA and Juiced Mango and Raspberry, are stocked in major supermarkets like Tesco, Asda, Waitrose and Ocado.

However, it’s not all bad news, an iconic 90s beer will return to UK pubs after 30 years.

Announcing the come back on Instagram, Allsopp’s Beer revealed Double Diamond is set to make a return.