Scottish & Newcastle axes 170 jobs

BREWING giant SCOTTISH & Newcastle has announced it will close the Fountainbridge Brewery in Edinburgh, part of its Scottish Courage business, with the loss of 170 jobs.

The Fountainbridge Brewery will close in December. The company blamed the competitive UK beer market, saying 'a priority for Scottish Courage in 2004 is to reduce costs in the UK business'.

The company also announced an agreement to buy a smaller production unit of the Caledonian Brewery in Edinburgh as a dedicated ale brewery for Scotland.

Production of the McEwan's ale brands will be switched to the Edinburgh site while lager production will be transferred to other Scottish Courage breweries in the UK.

The new agreement with the Caledonian Brewery will see Scottish Courage buy the brewery in Slateford Road, Edinburgh.

However, there was no announcement on speculation that Newcastle Brown Ale production in Tyne, Newcastle, may be put out to an independent brewery in Gateshead.

Scottish & Newcastle shares nudged up nearly 1% to 423 1/4p in early trading.