Carlsberg Marston's Brewing Company (CMBC) continues its wave of brewery closures, with the latest decision to shut down Banks’s Brewery in Wolverhampton by fall 2025. This marks the most recent development in a series of cutbacks following the joint venture between Carlsberg UK and Marston’s in 2020 (inside.beer, 22.5.2020).
Despite efforts from local officials, including Wolverhampton West MP Warinder Juss, to reverse the decision, CMBC has confirmed that the closure will proceed, resulting in the loss of 114 jobs.
Banks’s Brewery, which has been in operation since 1875 and will celebrate its 150th anniversary next year, is seen as a critical part of Wolverhampton’s cultural and industrial identity. Juss expressed disappointment, noting that the brewery’s closure would be a "massive loss" for the city, impacting not just workers but the broader community.
The company has committed to engaging in consultations with affected staff and union representatives, but has reiterated that the decision is final. CMBC cites two key reasons for the decision to close Banks’s Brewery. Firstly, the company cited the ongoing decline in cask ale volumes, a significant challenge in the current UK beer market. Secondly, Mahou San Miguel will not be renewing its long-term exclusive license agreement with CMBC from next year. This partnership had previously allowed CMBC to produce and distribute Mahou San Miguel’s products in the UK.
According to CMBC, the closure is part of a broader restructuring strategy aimed at navigating the challenges of the UK beer market, which has been hit hard by intense competition and economic pressures.
Paul Davies, CEO of CMBC, explained the tough choice: “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 hard reality is that, because of the current climate for cask ale and Mahou San Miguel’s decision not to renew its exclusive production and distribution agreement with CMBC from the start of next year, we will have significant excess capacity across our brewery network which we have to address.”
The closure of Banks’s Brewery follows a series of similar actions by CMBC, including the closure of the craft brewer London Fields Brewery in 2021 (inside.beer, 8.12.2021), the sale of Eagle Brewery to S.A. Damm in 2022 and the shutdown of Wychwood Brewery in 2023 (inside.beer, 14.9.2023), which produced popular ales like Hobgoblin. These moves are part of the company’s ongoing strategy to streamline operations and focus on more profitable segments of the market.
While CMBC has stated that they will maintain a presence on the Banks’s Brewery site, there are no immediate plans to sell it. The company remains committed to ensuring that the transition is handled as smoothly as possible for both workers and the local community.