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Young’s and Charles Wells Ltd to combine brewing operations
23rd May 2006
London brewer Young’s is to combine its brewing operations with Charles Wells of Bedford to create a major new national force in the brewing industry.A new company, Wells & Young's Brewing Company Limited, which will begin operations October 2nd, will brew all of Young's beers in Bedford alongside the Charles Wells brand portfolio.
The company will be owned 40 per cent by Young’s and 60 per cent by Charles Wells, reflecting the assets being contributed by each shareholder, which for Charles Wells include the freehold land and production facilities of the Eagle Brewery.
Wells & Young’s will be operated as an independent company, at arms length from its two shareholders. Both Young’s and Charles Wells will continue to operate their pub estates independently of each other and both have entered into separate three-year rolling (five-year minimum) supply agreements with Wells & Young’s.
Negotiations for the sale of Young’s ram Brewery site, in the centre of Wandsworth, South London, are at an advanced stage and it is hoped that part of the proceeds will be used to subscribe to shares in Wells & Young’s. The Young’s board will then be in a position to develop and build its present estate of 205 pubs.
The sale will allow Wandsworth Council to undertake much-needed regeneration of Wandsworth town centre. The development will incorporate some of the older brewery buildings, such as the Brewery Tap pub and Young’s working beam engines – among the oldest of their type in the world – as well as some historic brewing equipment, all of which will remain on display to the public.
At the same time, Young’s is moving some of its specialist brewing equipment and members of its brewing staff to Bedford, including Head Brewer Ken Don, to ensure that its beers will continue to match the flavours and quality that have won the company well over 50 medals in major brewing competitions in the past 40 years.
Young’s Chairman John Young said:
“This move will help to safeguard the future of Young’s and greatly strengthen cask beer’s overall position in the market. Charles Wells is a similar firm to Young’s in so many ways. I have known Oliver Wells, President and former Chairman of Charles Wells, for many, many years as part of a long-standing personal relationship between our two families.
As we prepare to say goodbye to Britain’s oldest brewery, founded in the reign of Elizabeth I and run by my family since 1831, we must avoid shedding tears and instead consider the advantages that our move will have.
It will ensure that we remain a vertically integrated brewery, as will Charles Wells, producing our own beers for our own pubs – something we at Young’s have long assured our shareholders that we would do.
The new company will have a modern brewery, with its own supply of natural mineral water. All our ales and stouts – on draught, in bottles and in cans – will be transferred and we shall benefit from access to Charles Wells’ brands, including three speciality lagers, Red Stripe Jamaica Lager Beer and Kirin Ichiban - Japan’s no. 1 beer, which are brewed under licence at Bedford, and Corona Extra, from Mexico, which Charles Wells markets & distributes.”
“Our sales team will join forces at the new company with their colleagues from Charles Wells, to give the enlarged beer portfolios greater marketing power and make Wells & Young’s a truly national and international drinks business.”
Paul Wells, Managing Director of Charles Wells, said: As we prepare to say goodbye to Britain’s oldest brewery, founded in the reign of Elizabeth I and run by my family since 1831, we must avoid shedding tears and instead consider the advantages that our move will have.
It will ensure that we remain a vertically integrated brewery, as will Charles Wells, producing our own beers for our own pubs – something we at Young’s have long assured our shareholders that we would do.
The new company will have a modern brewery, with its own supply of natural mineral water. All our ales and stouts – on draught, in bottles and in cans – will be transferred and we shall benefit from access to Charles Wells’ brands, including three speciality lagers, Red Stripe Jamaica Lager Beer and Kirin Ichiban - Japan’s no. 1 beer, which are brewed under licence at Bedford, and Corona Extra, from Mexico, which Charles Wells markets & distributes.”
“Our sales team will join forces at the new company with their colleagues from Charles Wells, to give the enlarged beer portfolios greater marketing power and make Wells & Young’s a truly national and international drinks business.”
“We are delighted to be teaming up with such a prestigious and historic business as Young’s. The merger of our respective brewing interests creates a significant new force in UK brewing, with strong and growing cask ale brands, operating out of one of Europe’s most modern breweries. We look forward to a long and profitable partnership between the two companies.”
Young’s decision to team up with Charles Well was taken after a two-and-a-half-year review of brewing operations in Wandsworth, originally prompted by a master plan for London drawn up by Mayor Ken Livingstone and by Wandsworth Council’s proposals to rejuvenate the borough.
John Young said the Ram Brewery site, which is needed as part of those plans, had many problems as a working brewery, including “appalling traffic congestion, an unsatisfactory layout, a serious lack of space, health and safety issues and some out-of-date buildings and equipment”.
“Given these problems, the council’s desire to press ahead with its development plans for Wandsworth and the opportunity to link up with Charles Wells, the decision to sell the site and unlock capital for future investment in the business, while emotional, was relatively straightforward.”
Young’s wines and spirits subsidiary, Cockburn & Campbell, will keep its name when it merges with the Charles Wells wine operation, Havelock Wines. FOR IMMEDIATE RELEASE 23rd MAY 2006
Further information from
Sarah McGhie at Charles Wells: 01234 279151 or 07967 835294
Michael Hardman at Young’s: 020 8875 7000 or 01483 542952
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