Greene King has reached an agreement to sell its Old Speckled Hen beer brands to the owner of Estrella Damm, as the company pivots away from producing beer for supermarket sales. This move is anticipated to result in the long-term closure of the Westgate Brewery in Bury St Edmunds, although Greene King is constructing a new facility in the same town.
The announcement follows the pub company's earlier disclosure that it would put 150 of its sites up for sale, citing "unprecedented" costs that are severely impacting the hospitality sector.
Damm UK, the British subsidiary of Spanish brewer SA Damm, has agreed to acquire the Old Speckled Hen portfolio, 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, the beer will continue to be brewed at the Westgate Brewery during a transitional period.
Subsequently, production will shift to Damm's recently built brewery in Bedford, leading to the eventual closure of Westgate. Old Speckled Hen will remain available in major UK supermarkets and other retailers as a result of this transaction.
This strategic shift is part of Greene King's broader focus on its pub operations. The Suffolk-based firm intends to move away from producing beer for the off-trade, which includes retailers like supermarkets. The Old Speckled Hen brands account for more than half of Greene King's beer sales 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 company plans to advance this strategy from summer 2027 with the opening of a new £40 million brewery in Bury St Edmunds.
Nick Mackenzie, chief executive of Greene King, stated: “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.
Luke White, managing director of Damm UK, commented: “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.”
