Scottish & Newcastle

Last updated

Scottish & Newcastle
Company type Public
Founded1749
DefunctApril 2008
FateAcquired by consortium of Heineken and Carlsberg
Headquarters Edinburgh, Scotland, UK
Key people
Sir Brian Stewart (Chairman), John Dunsmore (Chief Executive)
Products Beer
Parent Heineken N.V.   OOjs UI icon edit-ltr-progressive.svg
Subsidiaries S&N UK; Alken-Maes; Beamish & Crawford; Brasseries Kronenbourg; Central de Cervejas; Hartwall; Home Ales; Mythos; Waverley TBS; S&N Pub Company

Scottish & Newcastle plc was a brewing company headquartered in Edinburgh, Scotland, which expanded from its home base to become an international business with beer volumes growing almost tenfold.

Contents

The company was listed on the London Stock Exchange until it was acquired by Heineken and Carlsberg in 2008 and its assets split between them. The name Scottish & Newcastle continued to be used for the UK trading operation of Heineken International until 2009, when it was renamed Heineken UK. [1]

The former S&N Pub Enterprises leased pub division was rebranded as S&N Pub Company after the takeover. In 2012, it was rebranded again to Star Pubs & Bars, bringing an end to Scottish & Newcastle brand. [2]

History

Portrait of William Younger by Alan Ramsay Wm Younger portrait.jpg
Portrait of William Younger by Alan Ramsay

The company was founded by Grizel Syme who ran her late second husband's brewery: this brewery and those of her sons developed into the firm of William Younger & Co. [3] It merged with McEwan's in 1931 becoming Scottish Brewers. [3] In 1960 it merged again this time with Newcastle Breweries to form Scottish & Newcastle. [3]

By 1985, the company had become a regional brewer focused on Scotland and the North of England. [4]

By 1995, with the purchase of rival brewing business Courage, S&N had become the UK's leading brewer. [5]

In early 2000, S&N expanded outside the UK via a number of acquisitions in Western Europe, growing sales to over 50 Mhl per annum. Acquisitions included Kronenbourg. [6]

By acquiring Hartwall in 2002, Finland's leading beverage company business, S&N became 50% owners of Baltic Beverages Holding (BBH) encompassing brewing interests in Russia, Ukraine, Kazakhstan and the Baltic Countries of Latvia, Lithuania and Estonia. [7] The remaining 50% of BBH was owned by Carlsberg, which gained full control after the takeover of S&N in 2008. [8]

In July 2003, S&N acquired the Bulmers cider business, adding the Strongbow, Scrumpy Jack and Woodpecker brands to its portfolio, together with the UK's biggest cider mill and orchards in Hereford. [9]

In November 2003, S&N sold its remaining pub estate to the Spirit Group – retaining a successful tenanted pub management business (S&N Pub Company [10] ) with contracts to look after some 2,000 pubs on behalf of banks and other pub companies. [11]

In 2004 some radical cost-cutting measures were introduced, particularly within the UK where it was noted by analysts that the cost base was too high. During the year, the Fountain Brewery in Edinburgh was closed, followed some months later by the Tyne Brewery in Newcastle. This was followed in 2005 by the closure of distribution depots at Bow, Chelmsford and Maidstone with the task being integrated into Dagenham Regional Distribution Centre and depots at Hackbridge and Croydon with the remainder of the London accounts being served by Greenford. The company began to use transit points in Chelmsford and Faversham as cheap logistical alternatives to full working depots. Reciprocal acquisitions saw the Caledonian Brewery in Edinburgh and the Northern Clubs' Federation Brewery in Gateshead added to the business. [12]

In February 2005, Scottish & Newcastle and Carlsberg UK finalised a joint venture to carry out Technical Services work in the UK. Service Dispense Equipment Limited (SDEL) was formed from the dispense assets of both businesses. [13]

In 2006, S&N entered into a joint venture with the Swiss-based freight company, Kuehne and Nagel to set up a UK drinks distribution company (K+N Drinks Logistics). Some 3,000 S&N employees transferred to the new business. [14]

On 17 October 2007, Heineken International and Carlsberg jointly announced that they were considering forming a consortium to bid for, and acquire the total capitalisation of Scottish & Newcastle. No formal offer had been put to S&N at the time. [15] On 25 October, however, Heineken and Carlsberg announced that they had submitted a written proposal to S&N. They invited S&N to discuss a possible offer, the terms as to which they were prepared to proceed included a bid of 720 pence per share. [16] The offer was immediately rejected by the Board of S&N, who believed that it significantly undervalued the worth of the S&N group. [17] On 31 October, S&N announced that it had requested the Danish Courts to begin arbitration proceedings between itself and Carlsberg A/S in relation to the latter's alleged contractual infringements, relating to the joint ownership of Baltic Beverages Holdings (BBH). Carlsberg immediately countered that it believed S&N's claims were "spurious and without merit". [18]

A new offer was made public on 15 November 2007 by Carlsberg and Heineken, raising the offer to 750 pence per share. The partners claimed this was "substantially in excess of the standalone independent value of S&N". [19] On 17 January 2008, S&N announced that it was now in formal discussions with the consortium, following a revised proposal to purchase the business for £8 per share. [20]

On 25 January 2008, following limited due diligence and discussions with S&N, the consortium announced a formal cash offer for the entire S&N business at £8 per share. This offer had the full support of the S&N Board and was recommended to shareholders. [21]

On 31 March 2008, shareholders approved the £7.8 billion takeover by Heineken and Carlsberg. [22] The acquisition was completed on 29 April 2008 as S&N's shares were delisted from the London Stock Exchange. [23]

On 23 November 2009, the company changed its name to Heineken UK Ltd. to reflect the owner's name. [24]

Breweries

John Smith's Brewery, Tadcaster John Smith's (5937152877).jpg
John Smith's Brewery, Tadcaster

Scottish & Newcastle employed 40,000 people in the United Kingdom and mainland Europe, brewing beer at:

Operations

S&N owned or co-owned three of the top ten beers in Europe.

In addition to these key brands, its portfolio included other well-known drinks brands (acquirer in brackets):

Brands licensed to them included:

The Hofmeister brand was a 3.2% abv pale lager produced by Scottish Courage (later Scottish & Newcastle) from the 1980s to 2003. [26] [27] The brand was marketed in the 1980s with a series of advertisements featuring a bear, George, with a shiny, yellow jacket and a pork pie hat. [28] The first batch of the adverts in 1983 were the final directorial work of legendary film director Orson Welles. [29] In 2016, the Hofmeister brand returned with a new 5% recipe. [30] [31]

Division of the business between the Carlsberg/Heineken consortium

Heineken acquired:

S&N UK; Beamish and Crawford – ROI; Hartwall – Finland; Alken Maes – Belgium; Central de Cervejas – Portugal; Indian JV with UB; US export business and other venture markets. [32]

Carlsberg acquired:

Remaining 50% of Baltic Beverages Holdings; Kronenbourg – France; Mythos (beer) – Greece; Chongqing joint venture in China; Venture markets:- Switzerland; Africa; Hungary; Luxembourg; Indian Ocean; South and Central America and Asia.

Related Research Articles

<span class="mw-page-title-main">Foster's Lager</span> Brand of lager

Foster's Lager is an internationally distributed brand of Australian lager. It is owned by the Japanese brewing group Asahi Group Holdings, and is brewed under licence in a number of countries, including its biggest market, the UK, where the European rights to the brand are owned by Heineken International.

<span class="mw-page-title-main">Newcastle Brown Ale</span> Brown ale

Newcastle Brown Ale is a brown ale, originally brewed in Newcastle upon Tyne, England. Launched in 1927 by Colonel Jim Porter after three years of development, the 1960 merger of Newcastle Breweries with Scottish Brewers afforded the beer national distribution and sales peaked in the United Kingdom in the early 1970s. The beer underwent a resurgence in the late 1980s and early 1990s with student unions selling it. By the late 1990s, the beer was the most widely distributed alcoholic product in the UK. By the 2000s, the majority of sales were in the United States, although it still sells 100 million bottles annually in the UK. Brewing moved in 2005 from Newcastle to Dunston, Tyne and Wear, and in 2010 to Tadcaster. In 2017, the Heineken Brewery in Zoeterwoude, the Netherlands, also began production. As of 2019, it is brewed as well by Lagunitas Brewing Company in Petaluma, California, and Chicago, Illinois, for the American market.

<span class="mw-page-title-main">Heineken N.V.</span> Dutch multinational brewing company

Heineken N.V. is a Dutch multinational brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. As of 2019, Heineken owns over 165 breweries in more than 70 countries. It produces 348 international, regional, local and speciality beers and ciders and employs approximately 85,000 people.

<span class="mw-page-title-main">John Smith's Brewery</span> Brewery in Tadcaster, North Yorkshire, England

John Smith's Brewery in Tadcaster, North Yorkshire, England, produces beers including John Smith's, the highest selling bitter in the United Kingdom since the mid-1990s.

<span class="mw-page-title-main">Marston's Brewery</span> British pub and hotel chain

Marston's plc is a British pub and hotel operator. Founded by John Marston in 1834, it is listed on the London Stock Exchange. Marston's disposed of its brewing operations in 2020, selling the assets to a newly formed joint venture with the Carlsberg Group to create the Carlsberg Marston's Brewing Company (CMBC), in which Marston's plc holds a 40% share.

<span class="mw-page-title-main">Carlsberg Group</span> Danish brewery group

Carlsberg A/S is a Danish multinational brewer. Founded in 1847 by J. C. Jacobsen, the company's headquarters is in Copenhagen, Denmark. Since Jacobsen's death in 1887, the majority owner of the company has been the Carlsberg Foundation. The company's flagship brand is Carlsberg. Other brands include Tuborg, Kronenbourg, Somersby cider, Holsten, Neptun, Belgian Grimbergen, Fix, one of Greece's oldest brands and more than 500 local beers. The company employs around 41,000 people, primarily in Europe and Asia. Carlsberg is currently the 6th largest brewery in the world based on revenue.

<span class="mw-page-title-main">McEwan's</span> Scottish beer brand

McEwan's is a brand of beer owned by Carlsberg Marston's Brewing Company. It was originally brewed by William McEwan's Fountain Brewery in Edinburgh, Scotland. The McEwan's brand passed to Heineken in 2008 after their purchase of Scottish & Newcastle's British operations. Heineken sold the brand to Wells & Young's in 2011, who sold their brewing operation, including the McEwan brand to Marston's in 2017. Cans and bottles are now brewed in Bedford, England.

<span class="mw-page-title-main">Alken-Maes</span> Belgian brewery

Alken-Maes is a Belgian brewery created out of the 1988 merger of two small breweries, Maes located at Kontich-Waarloos and Cristal-Alken located at Alken. It was bought by Scottish & Newcastle in 2000, who were taken over by Carlsberg and Heineken in 2007.

Kronenbourg Brewery is a brewery founded in 1664 by Geronimus Hatt in the Free Imperial City of Straßburg, Holy Roman Empire. The name comes from the area where the brewery relocated in 1850. The company is owned by the Danish multinational Carlsberg. The premium brand is Kronenbourg 1664, a 5% abv pale lager.

<span class="mw-page-title-main">Grimbergen (beer)</span> Brand name of a variety of Belgian beers

Grimbergen is the brand name of a variety of Belgian abbey beers. Originally made by Norbertine monks in the Belgian town of Grimbergen, it is now brewed by different breweries in Belgium, France, Poland and Italy.

<span class="mw-page-title-main">Caledonian Brewery</span> Scottish brewery

Caledonian Brewery was a Scottish brewery founded in 1869 in the Shandon area of Edinburgh, Scotland.

<span class="mw-page-title-main">Beer in Ireland</span>

Brewing in Ireland has a long history. Production currently stands at over 8 million hectolitres, and approximately half the alcohol consumed is beer.

Beamish and Crawford was a brewery in Cork, Ireland, established in 1792 by William Beamish and William Crawford on the site of an existing porter brewery. In the early 1800s, it was the largest brewery in Ireland.

Heineken N.V. is a Dutch brewer which owns a worldwide portfolio of over 170 beer brands, mainly pale lager, though some other beer styles are produced. The two largest brands are Heineken and Tecate; though the portfolio includes Amstel, Fosters, Sagres, Cruzcampo, Skopsko, Affligem, Żywiec, Starobrno, Zagorka, Zlatý Bažant, Laško and Birra Moretti.

<span class="mw-page-title-main">Younger's Brewery</span> Brewery in Edinburgh

Younger's Brewery was a brewery in Edinburgh which grew from humble beginnings in 1749 to become one of the city’s main commercial enterprises, supplying domestic and foreign markets. It should not be confused with another, less renowned Edinburgh brewery, that of Robert Younger, who also brewed in Holyrood at the St. Ann's Brewery or that of George Younger, who brewed in Alloa.

<span class="mw-page-title-main">Wells & Young's Brewery</span> Brewery formed by a merger of Charles Wells Ltd and Youngs Brewery

Wells & Young's Brewery was formed in 2006 from a merger of the brewing operations of Charles Wells Ltd and Young's Brewery. Charles Wells initially had a 60% stake and Young's 40%. In 2011, Charles Wells took full control when it bought Young's 40% stake. Wells & Young's is now responsible for brewing, distributing and marketing Charles Wells' and Young & Co's brands at the Eagle Brewery in Bedford.

<span class="mw-page-title-main">Camerons Brewery</span> Brewery established in County Durham, England

Camerons Brewery is an English brewery established by John William Cameron in Stranton, Hartlepool, County Durham, in 1865. It is the largest independent brewer in the North East of England, with a brewery capacity of 1.5 million hectolitres and a tied estate of 75 houses. It is one of the oldest industrial concerns in Hartlepool, and has historically been one of the largest employers.

<span class="mw-page-title-main">1664 (beer)</span> French golden pale lager

Kronenbourg 1664 is a golden pale lager with an alcohol by volume (ABV) of 5.5% in continental Europe and 5.0% for the UK market. It was first brewed in 1664 by Canon Brewery in the Alsace region of France by master brewer Geronimus Hatt. It uses the exact same recipe as was first used in 1664. For the UK market only, Kronenbourg 1664 is owned and produced in the UK by Heineken after being bought from Scottish & Newcastle. However, the Carlsberg Group officially still owns and brews Kronenbourg in other markets. The French lager contains Strisselspalt hops, unique to Alsace, which are used in its brewing process and give the beer its bitter and fragrant citrus taste.

Hofmeister is a pale lager with 5% alcohol by volume distributed in Great Britain.

Star Pubs & Bars is the pub arm of Heineken UK, the UK subsidiary of Dutch brewing giant Heineken. Heineken acquired the pubs as a result of its takeover of Scottish & Newcastle in a joint purchase with Carlsberg in 2008. As of 2024, the company currently runs around 2,400 pubs in the UK.

References

  1. ↑ "Scottish & Newcastle to become Heineken UK". morningadvertiser.co.uk. 27 September 2009.
  2. ↑ "Heineken drops S & N for Star Pubs & Bars". 15 November 2012.
  3. 1 2 3 "Records of William Younger & Co Ltd, brewers, Edinburgh, Scotland". Archives hub. July 2009. Retrieved 25 July 2009.
  4. ↑ Gillett, Alex; Tennent, Kevin; Hutchinson, Fred (27 April 2016). Cabras, Ignazio; Higgins, David; Preece, David (eds.). Brewing, Beer and Pubs: A Global Perspective. Palgrave Macmillan UK. pp. 303–320. doi:10.1057/9781137466181_16 – via Springer Link.
  5. ↑ "S&N agrees to sell Courage". The Guardian. 17 January 2007. Retrieved 18 March 2024.
  6. ↑ "Scottish & Newcastle acquires Kronenbourg in £1.7bn deal". The Independent . Archived from the original on 5 October 2007. Retrieved 12 April 2007.
  7. ↑ Cope, Nigel (15 February 2002). "S&N gulps Hartwall and moves into Russia". London: BBC News. Archived from the original on 6 July 2009. Retrieved 1 January 2009.
  8. ↑ "Baltika Brewery". Carlsberg Group . Retrieved 30 April 2008.
  9. ↑ Treanor, Jill (29 April 2003). "£278m Bulmers buy completes S&N u-turn". The Guardian. London. Retrieved 1 January 2009.
  10. ↑ S&N Pub Company
  11. ↑ Walsh, Dominic (7 October 2003). "Pub sector recast as S&N sells retail division". The Guardian. London. Retrieved 1 January 2009.
  12. ↑ "Further fears after brewery cuts". BBC News. 18 February 2004. Retrieved 1 January 2009.
  13. ↑ "Brewing big guns are refused another drink". Edinburgh News. 11 March 2005. Retrieved 1 January 2009.
  14. ↑ "Unions angered by Scottish & Newcastle's latest venture". Manufacturing News. 26 April 2006. Retrieved 1 January 2009.[ permanent dead link ]
  15. ↑ "Bid plan for Scottish & Newcastle". BBC News. 17 October 2007. Retrieved 31 October 2007.
  16. ↑ "Heineken N.V. and Carlsberg A/S approach to Scottish & Newcastle plc" (Press release). Heineken N.V. 25 October 2007. Retrieved 25 October 2007.
  17. ↑ "REG-Scot.& Newcastle Statement re Possible Offer" (Press release). Scottish & Newcastle PLC. 25 October 2007. Retrieved 31 October 2007.
  18. ↑ "REG-Scot.& Newcastle Statement re Possible Offer". Reuters. 31 October 2007. Retrieved 31 October 2007.[ dead link ]
  19. ↑ "Carlsberg A/S and Heineken N.V. - full and fair proposal made to Scottish & Newcastle PLC" (Press release). Carlsberg A/S. 15 November 2007. Retrieved 15 November 2007.
  20. ↑ "Discussions with Carlsberg A/S and Heineken N.V." (Press release). S&N plc. 17 January 2008. Retrieved 15 November 2007.
  21. ↑ "S&N accepts £7.8bn takeover deal". BBC News. 25 January 2008. Retrieved 1 January 2009.
  22. ↑ "Scottish & Newcastle shareholders agree takeover". BBC News. 31 March 2008. Retrieved 1 January 2009.
  23. ↑ Bradley, Jane (29 April 2008). "S&N sails into history as brewer taken over". The Scotsman . Retrieved 30 April 2008.
  24. ↑ Scottish & Newcastle to become Heineken UK Morning Advertiser, 28 September 2009
  25. ↑ "Heineken to close historic Caledonian Brewery in Edinburgh". Brauwelt. Retrieved 10 January 2024.
  26. ↑ "Follow the bear... out the door as Hofmeister is axed - Brand Republic News - Brand Republic". www.brandrepublic.com. Retrieved 2 March 2010.
  27. ↑ "Hofmeister from Berkshire (Heineken) - Ratebeer". www.ratebeer.com. Retrieved 2 March 2010.
  28. ↑ Wheeler, Brian (16 October 2003). "The death of cheap lager". BBC News. Retrieved 2 March 2010.
  29. ↑ Leaming, Barbara (2004). Orson Welles: A Biography. Limelight Editions. p. 580. ISBN   978-0879101992.
  30. ↑ Davies, Rob (21 November 2016). "George the bear seeks new followers as Hofmeister lager returns". The Guardian. ISSN   0261-3077 . Retrieved 15 September 2017.
  31. ↑ "Follow the bear: Hofmeister brings George out of hibernation". The Week Portfolio. 11 November 2016. Retrieved 15 September 2017.
  32. ↑ "Carlsberg, Heineken agree $15.3 billion S&N deal". Reuters. 25 January 2008.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.