St Austell acquires Bath Ales

Cornish brewer St Austell has acquired fellow West Country brewer Bath Ales and its pub chain for a non-disclosed sum.

James Staughton (l) of St Austell and Roger Jones of Bath Ales

The deal sees St Austell obtain Bath Ales’ portfolio of brands, which includes ‘Gem’ and ‘Wild Hare’, as well as the 11 pubs it operates in Bristol, Bath, Cirencester and Oxford.

The two breweries will continue to produce their own beers but serious investment in Bath Ales to expand its brewing and packaging facilities is expected.

St Austell’s chief executive, James Staughton, said: “For a long time Bath Ales has been a company I have admired and this exciting acquisition provides the coming together of two like-minded businesses.

“Bath Ales brews great beer and has a thriving pub estate both of which complement those of St Austell Brewery and with the acquisition we are committing to a long-term significant investment in the Bath Ales brands, pub estate, people and brewing facilities.

“We already operate a successful free trade business across the region, and a wholesale service to free trade customers, which will also bring additional routes to market for Bath Ales’ beers.”

Bath Ales’ founder, Roger Jones, added: “This is a really exciting move for Bath Ales. With the investment and broader support from St Austell Brewery we are better placed to capture the opportunity that exists for Bath Ales.

“We are confident that we can also make a strong contribution to their operations so that the combined organisation can really set the standard for quality beers and outstanding venues.

“From the first contact with St Austell Brewery we genuinely found people and an operation that have a consistent set of values and the same commitment to quality. The combined business will be a force to be reckoned with.”

Earlier this year St Austell announced a strong 53-week trading period to 2 January. Annual turnover was reported to have risen by 7.9% to £137.4 million and there was a 7.6% increase in operating profit to £13.5m.

Bath Ales meanwhile recorded sales growth of 7% to £15.6m, driven by sales of brands such as Gem which rose by 18% to more than 5m pints.