The national chairman of the Campaign for Real Ale has deemed the announcement regarding the impending closure of Banks’s brewery in Wolverhampton as “devastating yet foreseeable” for the British brewing landscape.

The Carlsberg Marston’s Brewing Company revealed plans to shut down the historic Chapel Ash brewery, which has been operational since 1875, in autumn of the following year.

This decision follows Carlsberg Marston’s acquisition of the remaining shares in Marston’s for approximately £206 million in July, and is attributed to Mahou San Miguel’s choice not to renew its long-term exclusive licensing agreement, which expires in 2025, along with a steady decrease in cask ale consumption over recent years.

Ash Corbett-Collins, the chairman of Camra, stated: “In light of Carlsberg’s buyout of CMBC, effectively converting Marston’s brewing entity into a globally owned brand, we anticipated developments like this would arise sooner rather than later.”

He further commented: “We are, however, encouraged by the willingness of Carlsberg to consider offers for the site to continue brewing operations. It is essential that the brands produced by CMBC at Banks’s continue at the Marston’s brewery [in Burton], as their absence would significantly impact consumer choice and the diversity of British beer.”

This situation highlights the considerable challenges faced by global brewers due to rising beer taxes, energy costs, and raw material expenses. These challenges are particularly severe for independent brewers, who also contend with limited access to the pub market, underscoring the necessity for government support through the upcoming budget for the pub and brewing sectors.

In a statement, CMBC confirmed its commitment to assist the 97 employees affected by this restructuring plan at the Wolverhampton brewery.

As part of its restructuring strategy, CMBC intends to inject additional funds into its breweries located in Northampton and Burton, aiming to position Marston’s Brewery in Burton as a “national hub for craft beer and traditional ale production in the UK.”

CMBC plans to invest over £6 million in significant projects at its Burton brewery, including updates to its cask ale production line and the establishment of a new logistics depot in the Black Country area.

CMBC’s chief executive, Paul Davies, remarked: “This has been an exceptionally tough decision. However, it has become imperative to realign our business to sustain competitiveness in the current challenging UK beer market.”

He continued: “The harsh reality is, due to the existing conditions for ale and Mahou San Miguel’s decision to not extend its exclusive production and distribution contract with CMBC starting next year, we must address the significant excess capacity within our brewery network.”