After what it claims is a long period operating under capacity, Heineken UK has announced a proposal to close the Caledonian Brewery in Edinburgh.
This comes with an agreement in principle with Greene King to continue brewing Caledonian’s brands, including Deuchars and Maltsmiths, at its Belhaven brewery in Dunbar.
A statement explained that the focus over the coming weeks will be to consult on the proposals with the 30 colleagues who work at the brewery and their trade union representatives. Caledonian Brewery will continue to operate during the consultation process.
Matt Callan, supply chain director for Heineken UK said: “We’ve not taken this decision lightly - we’re acutely aware of what the brewery represents in Edinburgh, and its role in the history and heritage of brewing in Scotland – this is something we’re incredibly proud of.
“The sad fact is, its Victorian infrastructure means significant inefficiencies and costs, particularly as it is operating below capacity.
“To modernise the brewery, and to meet our own sustainability commitments, would require considerable ongoing investment, which would make operating the brewery economically unviable.”
Callan added: “We’re working hard to make sure the Caledonian brands will continue to be produced in Scotland if the proposed closure goes ahead.”
Greene King's brewing and brands managing director Matt Starbuck commented: “These brands are long loved in both Scotland and beyond and we are proud to be able to continue to brew them so they can be enjoyed by consumers and customers alike.
“This agreement underlines our commitment to Belhaven Brewery as Scotland’s oldest working brewery, and boosts our portfolio of already award-winning beers.”
The Caledonian was set up in 1869 and is the last major brewery in the city.
Heineken took over the operation of the Caledonian in 2008 after acquiring Scottish & Newcastle.
Unite's spokesman Joe Clarke said the union had arranged meetings with Heineken for next week to discuss the situation.
“Unite will leave no stone unturned in an effort to keep production and jobs in Edinburgh, and all options should be on the table including government support.”
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