Molson Coors has confirmed that its Cornish brewery Sharp's will close permanently before Christmas, with 40 redundancies. The closure of the Rock-based brewery near Padstow was first announced in February, when the company said 50 positions could be at risk.
Sharp's is best known as the home of Doom Bar, the UK's best-selling cask ale, which has been a staple at pubs, restaurants and supermarkets across the country for years.
Consultation concludes
Molson Coors Beverage Company (MCBC) said the announcement follows the conclusion of a consultation process launched in February, during which "every alternative has been fully considered". The company attributed the decision to "market conditions continuing to evolve and changing consumer tastes leading to a challenged cask ale category".
However, the firm said Sharp's best-selling beers and brands such as Doom Bar will now be brewed at Molson Coors' other breweries in Burton-on-Trent in Staffordshire, Tadcaster in Yorkshire and near Hartlepool.
Investment and future plans
A company spokesperson said: "Since acquiring the Sharp's brewery site in 2011, Molson Coors has invested more than £20m in the brewery to expand capacity, upgrade equipment, support innovation and strengthen the Sharp's portfolio."
"However, with market conditions continuing to evolve and changing consumer tastes leading to a challenged cask ale category, the Sharp's brewery was no longer financially sustainable as part of Molson Coors' national production network. The brewery will cease production in December, with Molson Coors exploring a sale of the premises."
MCBC confirmed that heads of terms have been agreed with Camerons Brewery as Molson Coors' preferred brewing partner for key Sharp's cask brands, while production of Sharp's keg and packaged brands will continue at Molson Coors' Burton and Tadcaster breweries.
Simon Kerry, managing director, UK and Ireland at MCBC, added: "For the last 15 years, Sharp's Brewery has formed a significant part of our UK business, so taking the decision to close the site has not been easy. However, despite our best efforts, the site is no longer financially sustainable."
"I would like to take the opportunity to thank our many exceptional colleagues at Rock who have been instrumental in the success of the Sharp's brands during that time. Our focus is now on supporting those impacted throughout this transition."
CAMRA response
The Campaign for Real Ale in Cornwall (CAMRA Kernow) has called for new 'pasty-style' legislation following news that Sharp's beers will be brewed hundreds of miles from their Cornish roots, arguing the drinks should no longer be marketed as Cornish once all ties to the county are severed.
Dave Pedlar, CAMRA Kernow chairman, said: "This is a betrayal of the founders of Sharp's, the 40 people whose jobs are at risk and the locals that have supported this business for decades."
"We've known for a while that the Sharp's cask production was moving up country, but Hartlepool is 417 miles away, which is as far from Rock as Brussels. We need 'pasty-style' consumer protection laws that stop Molson Coors from continuing to market these beers as Cornish."
Since Molson Coors announced its intention to close Sharp's in February, CAMRA has launched a UK-wide campaign and 'Beer in the UK' report to raise awareness of the tactics of global brewers in the UK beer market. The campaign shines a light on misleading marketing practices and the struggles independent brewers face in getting their products onto bar taps across the country.
Tom Stainer, CAMRA chief executive, said: "It's entirely ridiculous that a beer named after a sandbank in the Camel Estuary, and marketed as a 'Cornish original', is now going to be made in Hartlepool. Once again, global brewers are closing breweries, trashing our reputation as a great brewing nation, and misleading ordinary drinkers."
"This is why we've launched our new campaign to expose 'Big Beer' in the UK, their misleading marketing tactics, and demand that the Competition and Markets Authority investigate how global corporations dominate the beer market. We need decisive action to deliver a fairer beer market for independent brewers and ordinary drinkers."
