Greene King has reached an agreement to sell its Old Speckled Hen brand to the owner of Estrella Damm, marking a strategic shift away from producing beer for supermarket sales. The deal will eventually lead to the closure of the Westgate Brewery in Bury St Edmunds, although Greene King is constructing a new facility in the same town.
Details of the Acquisition
Damm UK, the British subsidiary of Spanish brewer SA Damm, has acquired the Old Speckled Hen group of beers, which includes Old Golden Hen, Old Crafty Hen, Old Master Hen, and Low Alcohol Old Speckled Hen. To ensure continuity of supply and consistent flavour, brewing will continue at the Westgate Brewery during a transition period. Subsequently, production will be transferred to Damm's recently built brewery in Bedford, leading to the eventual closure of Westgate.
Strategic Shift for Greene King
This move is part of a broader change in strategy for Greene King, which is intensifying its focus on its pub operations. The Suffolk-based company stated it will move away from producing beer for the off-trade, the industry term for retailers such as supermarkets. The Old Speckled Hen brands account for more than half of Greene King's beers sold in UK retailers.
Greene King, which operates 2,500 pubs, restaurants, and hotels, will continue to produce cask ale and craft beer, including Greene King IPA and Abbot Ale, but will concentrate on selling these in its pub venues. The group plans to advance this strategy from summer 2027 with the opening of a new £40 million brewery in Bury St Edmunds.
Leadership Comments
Nick Mackenzie, chief executive of Greene King, commented: “Brewing beer in Bury St Edmunds to be sold in pubs is what we have been doing for more than 200 years. By making this core to our renewed brewing strategy, we are proposing optimising our brewing operations to focus on winning where we are strongest, delivering our beers to the pubs where our customers most love to drink them and setting Greene King up for long-term profitable growth.”
Greene King confirmed that its Scottish Belhaven brewing business will not be affected by these changes.
Damm UK's Perspective
Luke White, managing director of Damm UK, stated: “Old Speckled Hen is an iconic British ale brand with a rich heritage and loyal following, and we are proud that Greene King has chosen Damm UK to take the brand forward into its next chapter. We have great respect for the history Greene King has built around Old Speckled Hen over the last 25 years and look forward to working closely together throughout the transition period to ensure continued success for the brand, customers and consumers alike.”
The Old Speckled Hen brand will remain available in major UK supermarkets and other retailers as a result of the deal.
