Carlsberg brewery in Wolverhampton to close whilst Burton site gets £6m boost

Mahou San Miguel has chosen not to renew its long-term exclusive licence partnership with Carlsberg from 2025. Credit: PA Images

Beer will no longer be brewed in Wolverhampton after Carlsberg Marston’s Brewing Company (CMBC) revealed plans to close the site.

Banks’s Brewery will shut in Autumn 2025, as part of a restructuring of CMBC's brewery network.

CMBC says the end of a licence partnership and the decline of cask ale volumes over several years has lead to the proposed restructuring.

The firm says it will be supporting colleagues impacted by these proposals, including the 97 people employed at Banks’s Brewery.

The firm added that it will be working with trade union and colleague representatives throughout the consultation process.

As part of the network restructuring, CMBC will increase investment in its breweries in Northampton and Burton-upon-Trent.

The long-term goal is to establish Marston’s Brewery in Burton as a national centre for craft beer and traditional ale brewing in the UK, with £6million to be invested in new projects.

These include the refurbishment of the site's cask ale line to brew traditional British ales, as well developing the brewery’s capabilities for brewing innovative, contemporary craft ales.

Carlsberg's brewery in Burton-upon-Trent will receive a £6m boost. Credit: PA Images

CMBC will also be investing in a new logistics depot in the Black Country region to support its nationwide secondary logistics network.

Paul Davies, CEO of CMBC, said: “This has been an extremely difficult decision, however it has been necessary to restructure our business to maintain our competitiveness in a challenging UK beer market.

“The hard reality is that, because of the current climate for ale and Mahou San Miguel’s decision not to renew its exclusive production and distribution agreement with CMBC from the start of next year, we will have significant excess capacity across our brewery network which we have to address.

"The team at Banks’s has been unwavering in its dedication and commitment to the brewery. We will ensure that we support all our people closely throughout this extremely challenging period.

“While the proposed closure of our Wolverhampton brewery is very regrettable, with the significant investments we are making in our Northampton and Burton breweries, our strong portfolio of brands and industry-leading logistics network, CMBC will continue to deliver for our customers and focus on long-term growth.”

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...