BrewDog has made a major closure announcement, which will put multiple jobs at risk, as the Labour Government unveils its £300million support package to support Britain's pubs.
The pub chain has confirmed it is shutting down all of its distilling brands and will no longer produce any of its spirits, Duo Rum, Abstrakt Vodka and Lonewolf Gin, at its distillery in Ellon, Aberdeenshire.
Founded in 2007, BrewDog has asserted it intends to focus on its well-known beer brands, such as the highly popular Punk IPA, in lieu of its range of spirit products. However, the Wonderland cocktail range will remain in place.
At the same, the brand's distilling arm will stop operating over the coming months, with BrewDog selling off remaining stock and honouring its existing supply commitments. It is understood the future of the distillery building itself will be reviewed at a later date.
BrewDog has made a major closure announcement
|GETTY
A spokesperson for BrewDog said: "After careful consideration, we’ve made the difficult decision to cease production of our distilling brands, with the exception of Wonderland cocktails.
"This will allow us to sharpen our focus and concentrate our efforts on our beer and the continued growth of Wonderland. We’re incredibly proud of what the distillery team has built and want to thank everyone who has worked on, contributed to, and supported the distilling business over the years."
Harriet Cross, the Conservative Party MP for Gordon and Buchan, shared her concern at the latest move from BrewDog, but she acknowledged the hardship facing the drinks industry.
She said: "The announcement of the closure of BrewDog’s distilling business is deeply concerning. The staff at BrewDog whose jobs are now at risk will understandably be very worried by this."
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Ms Cross added: "“This decision highlights the growing issues facing the drinks industry and hospitality sector, with challenging market conditions causing financial difficulties.
"Residents in and around Ellon rely on employment from BrewDog, and an important local business making cutbacks like this is very unsettling for the area. I will now be writing to BrewDog asking what implications this closure will have on jobs, and if this decision will affect any other parts of its business."
Under Labour's rescue plan, every pub in England will get a 15 per cent discount off its new business rates bill from April, with their bills set to be frozen over the next two years.
This will be worth £1,650 for the average pub next year, and will mean around three-quarters of pubs will see their bills stay the same, or fall, next year. The package will mean in 2028/29, business rates receipts from pubs for HM Revenue and Customs (HMRC) will be lower than they are this year.
A business rate relief package for pubs was announced by Dan Tomlinson MP | GOVIn reaction to the business relief package, Ash Corbett-Collins, chairman for the Campaign for Real Ail (CAMRA), said: "This short-term announcement is not the ‘permanently lower business rates’ that pubs were promised.
"While it is positive that the Chancellor has listened and announced extra discounts for pubs facing the threat of closure, it is short-sighted to think that today’s statement will give publicans the certainty they need.
"The plan to review the unfair way pubs are assessed for business rates is welcome, but this leaves pubs in the same situation as they have been for years - still facing a long wait for promised, and fundamental, reforms to make the system fairer.
"CAMRA will keep campaigning to get the Government to support great pubs and independent breweries so they can compete against online businesses and cheap supermarket booze."