The Dutch and Danish consortium is set to take ownership of the Caledonian Brewery in Slateford Road, which produces much-loved Deuchars IPA and Caledonian 80/- beers.

The brewing giants had already agreed to buy Edinburgh-based Scottish and Newcastle in a £7.8 million deal. But in a surprise move, S&N, which held a 30 per cent share in the Caley has bought the remaining 70 per cent for an undisclosed sum.

Managers have said it will be “business as usual” and there will be no redundancies in the move.

But the Campaign for Real Ale today said it was concerned that the future of the award-winning cask ales could be affected.

The Caledonian Brewery dates back to 1869, when Edinburgh was at the heart of the British brewing industry. It is now the sole survivor of around 40 breweries that used to exist in the city.

Ian Lowe, CAMRA’s research and information manager said: “We have been very worried about this takeover. Our main concern is whether Heineken are really interested in producing cask ales in the UK. There is a big question mark over their future of cask brewing in Edinburgh.

“We’re obviously concerned about the jobs at the brewery. It’s very sad that Edinburgh has now almost totally lost its brewing heritage.”

But Caledonian managing director Stephen Crawley, who is to stay on following the takeover, insisted it would be “business as usual” for the historic brewery. He said the iconic Deuchars brand would not be affected.

He was reported as saying: “The business has been running on the same basis as it is going to run in the future and it is very much business as usual – essentially is it just a shareholder change.

He said no redundancies were planned but added that “everything was up for debate” in the future.

The Slateford Road brewery’s 75 staff were told about the acquisition in an e-mail yesterday afternoon.

One worker said: “Everyone’s worried about what will happen. We’re concerned for our jobs. This is a big change for the Caley Brewery.”

Ron Hewitt, the director of Edinburgh Chamber of Commerce, said: “The Caledonian Brewery has been a fantastically successful business, but like any business, its investors are looking for the best return on their capital.

“At an emotional level, it’s regrettable to see a Scottish-owned brewery passing into international hands, but there is another generation of brewers such as Innis and Gunn coming through.”

S&N has said that further investment was planned for the brewery, which has already benefited from £4m of improvements paid for by the bigger company over the past four years.

Taken from: http://news.scotsman.com
By HAZEL MOLLISON