Heineken UK to shut down Caledonian Brewery due to significant inefficiencies

UK – Heineken UK, a subsidiary of Dutch multinational brewing giant Heineken has announced plans to close the Caledonian Brewery in Edinburgh which has been running for more than 150 years, due to a long period of operating under capacity.

The company said it has decided to take this tough decision since the Caledonian brewer, which became part of Heineken after the Dutch brewer acquired S&N, has significant inefficiencies.

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The facility has also become economically unviable to be modernized into a state-of-the-art brewery owing to the considerable ongoing investment required.

Heineken UK further added that production at Caledonian Brewery steadily declined over the last ten years, as the brewer had evolved its portfolio.

Even after closure, Caledonian brands including Deuchars and Malt smiths will continue to be brewed at Belhaven Brewery in Dunbar, Scotland as there is an agreement in principle with Greene King.

Matt Callan, supply chain director for Heineken UK said “We’re also aware that the beers produced at Caledonian Brewery are enjoyed by many people. That’s why we’re working hard to make sure the Caledonian brands will continue to be produced in Scotland if the proposed closure goes ahead.

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“We have an agreement in principle to license the brands to Greene King who will brew Deuchars, Coast to Coast, and Malt smiths IPA and Lager at its Belhaven brewery in Dunbar.”

According to Heineken, the Caledonian brewery will continue to operate during the consultation period, when the company will be in talks with the 30 workers from the brewery and their trade union/colleague.

Meanwhile, Heineken UK has pledged an investment of £42 million (US$ 45.24 million) to UK pubs that will see 660 pubs be upgraded to enable quick recovery from the covid-19 pandemic.

Heineken UK added that 137 of its pubs will receive a makeover costing at least £125,000(US$ 134,641) as it continues to refresh its property estate.

This latest cash injection will bring the total investment in refurbishing its pubs to £115 million (US$ 123.87million) since the pandemic first hit and to £300million (US$323 million) since 2014.

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 The revamps will “reflect two long-term trends that have been accelerated and amplified by the pandemic – pubgoers’ increasing demand for quality and for outdoor socializing”, according to Heineken UK.

The company is confident these pubs which adapt to pubgoers’ changing needs will have a bright, long-term future as well as provide additional 700 jobs.

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