Charles Wells sells brewery to Marston’s for £55m

18th May, 2017 by Lauren Eads

Historic UK brewer Charles Wells has sold its brewery and the majority of its beer brands to rival Marston’s in a deal worth £55 million, which excludes its chain of pubs in the UK and France.

Charles Wells was founded in 1876 in Bedford

The sale of its brewery and brands signals Charles Wells’ exit from higher volume national sales in favour of a more local and smaller scale brewing future in Bedford, with plans instead to invest in a smaller brewery to supply its pubs.

Charles Wells’ Eagle Brewery in Bedford, which opened in 1976 and has the capacity to produce more than one million hectoliters, is the home of brands including Bombardier, Courage, and McEwan’s, all of which will now come under the ownership of Marston’s.

The sale also includes the UK distribution rights for Kirin Lager, Estrella Damm, Erdinger and Founders, and the exclusive global license of the Young’s brand. In addition, its Cockburn & Campbell wine merchant business will also transfer to the ownership of Marstons. Employees at the brewery in production, national sales, and brands marketing will transfer to Marston’s. Charles Wells Ltd will retain ownership of its Charlie Wells and John Bull beer brands.

It is the second big purchase of a rival brewer for Marstons in recent years, having purchased Daniel Thwaites’ beer division in a cash deal worth £25.1 million in 2015.

 “Marston’s is delighted to have reached this agreement with Charles Wells and is absolutely committed to the future of brewing in Bedford,” said Ralph Findlay, chief executive officer of Marston’s PLC.

“This agreement offers us opportunities to extend our trading area into new areas. The acquisition of the Charles Wells brewing business builds on Marston’s established brewing prowess and is a further step in our objective to develop the leading premium beer business in the UK market, something that Bedford’s Eagle Brewery will play an important part in.”

Charles Wells announced that it would be downsizing its brewing operation and followingthis sale would be investing in a small new, Bedford-based brewery to supply beers to its pub customers in the UK and Europe.

Brewing and supply agreements will be made with Marston’s for interim brewing and longer term exclusive pub distribution services. The Charles Wells pub estate will also have the benefit of the wider beer and wine range available from Marston’s.

Going forward, its key focus will be the expansion of its managed pub businesses in the UK and France through acquisition, alongside additional investment in its leased and tenanted estate.

“We are delighted to have reached an agreement with Marston’s to acquire our brewery and become a close trading partner,” said Justin Phillimore, chief executive of Charles Wells Ltd. “After a detailed review of our strategy we had decided to re-balance the company more towards retail investment and that meant finding a partner we could work with for the future. There are opportunities for both companies in this deal and we look forward to bringing them to life”

Commenting on the deal Tim Page, the Campaign for Real Ale’s (CAMRA) chief executive said it was “always concerned” about any consolidation in the brewing industry, as it could result in a “reduction in choice, value for money and quality for beer drinkers”.

“We’re also wary of one company increasingly controlling a larger and larger share of the market, which is seldom beneficial for consumers,” said Page. “Marston’s has a positive track record of keeping the breweries it acquires open, in situ, and in many cases investing in the sites to increase capacity, and we urge them to continue that policy. We’d also encourage them to protect the brands that they have acquired and increase the range available to beer drinkers, by continuing to supply them alongside the existing beers produced by Marston’s owned breweries.

“It’s reassuring to hear that Charles Wells intends to continue brewing in Bedford, ensuring that whatever Marston’s chooses to do with the brewery and brands it has acquired, local people will continue to be able to enjoy locally brewed beers in the region.”
Charles Wells was founded in 1876 and today owns over 200 pubs in England and France.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

ViVAS Wine - Category Development Manager

ViVAS
Harlow and Stowmarket or Salisbury, UK

Fine Wine Logistics Coordinator

IG Wines
London, GB

Brand Ambassador East Coast USA - Ableforth’s

Maverick Drinks
New York - field-based, USA

Brand Ambassador West Coast USA - Ableforth’s

Maverick Drinks
San Francisco / Los Angeles - field-based, USA

Global Travel Retail Manager

Maverick Drinks
London, UK

Portfolio Ambassador - Europe

Maverick Drinks
North West Europe - field-based, UK

Senior Partner Manager - Grocery

Maverick Drinks
London/Field Based, UK

Sales Executive

Woolf Sung Ltd
London

Trade Marketing Manager - Maverick Drinks

Maverick Drinks
London / Kent

Business Development Executive Central London

William Grant & Sons UK
London

Almaviva 2015 Vintage and Vertical Tasting

London,United Kingdom
28th Sep 2017

TFWA World Exhibition & Conference

Cannes,France
1st Oct 2017

Franciacorta London Festival

London,United Kingdom
2nd Oct 2017
Click to view more

Global Chardonnay Masters 2017

Deadline : 29th September 2017

The Global Riesling Masters 2017

Deadline : 29th September 2017

Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more