Newspaper article The Journal (Newcastle, England)

Is Famous Brew Safe?

Newspaper article The Journal (Newcastle, England)

Is Famous Brew Safe?

Article excerpt

The deal which will see Scottish and Newcastle buy the Federation Brewery may well have saved the brewing industry on Tyneside.

But a question mark remains over S&N's most famous product - Newcastle Brown Ale.

It emerges that the Federation Brewery was facing massive financial problems and S&N, obviously, was keen to unload its Newcastle facility.

The pounds 7.2m deal will see the home of Newcastle Brown Ale close in spring 2005 with the loss of 110 jobs as production is shifted away from the beer's historic home across the Tyne to Dunston, Gateshead.

Edinburgh-based S&N also wants to snap up the Federation's beer brands, wholesale business and 35 pubs and clubs for an additional pounds 16.2m, a deal which must be approved by the 303 working men's clubs which own the Federation.

As the story unfolded yesterday - after a stock exchange announcement - it became clear that, without this deal, neither site had a particularly solid future. …

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