Greene King to sell famous ale brand to Spanish brewer as fears rise over future of brewery
Greene King has agreed to sell its popular Old Speckled Hen brand to Damm UK, owner of Estrella Damm; because the brewing giant has shifted its focus away from producing beer for supermarket shelves.
This landmark deal is expected to lead to the long-term closure of Westgate Brewery in Bury St Edmunds, although Greene King is simultaneously developing a new site in the town.
Damm UK, the British arm of Spanish brewer SA Damm, will acquire the entire Old Speckled Hen family of beers, which includes Old Golden Hen, Old Crafty Hen, Old Master Hen and Low Alcohol Old Speckled Hen.
To ensure a smooth transition and maintain consistent taste, Damm UK will initially continue to brew the beers at Westgate Brewery.
However, production will later be moved to Damm’s recently built brewery in Bedford, ultimately resulting in the closure of the Westgate site.
Despite the change of ownership and production location, Old Speckled Hen will remain readily available in major supermarkets and other retailers across the UK.
The disposal forms part of a wider strategic realignment by Greene King which aims to focus more carefully on its extensive pub property.
The Suffolk-based firm said it would stop producing beer for sale off-trade, the industry term for retailers including supermarkets.
Old Speckled Hen brands make up more than half of Greene King’s beers sold at UK retailers.
Greene King, which operates 2,500 pubs, restaurants and hotels, will continue to produce cask and craft beer, including Greene King IPA and Abbot Ale, but will focus on selling them in pub venues.
The group said it would take the strategy forward with the opening of a new £40m brewery in Bury St Edmunds from summer 2027.
Nick Mackenzie, CEO of Greene King, said: “Breaking beer in Bury St Edmunds to be sold in pubs is something we have been doing for over 200 years.
“By incorporating this essence into our revamped brewing strategy, we propose to optimize our brewing operations to focus on winning where we are strongest, delivering our beers to the bars our customers love to drink in the most, and setting Greene King up for long-term profitable growth.”
Greene King said its Scottish Belhaven brewing business would not be affected by the changes.
Luke White, Managing Director of Damm UK, said: “Old Speckled Hen is an iconic British beer brand with a rich heritage and loyal following and we are proud that Greene King has chosen Damm UK to take the brand to the next level.
“We have great respect for the history that Greene King has built around the Old Speckled Hen over the last 25 years and we look forward to working closely together throughout the transition period to ensure continued success for the brand, customers and consumers.”
