Report: Anheuser-Busch InBev to close London’s historic Stag Brewery
Seeking to cut costs in the U.K. market, Anheuser-Busch InBev plans to close the famed Stag Brewery in Mortlake, which is located in west London, according to media reports.
Anheuser-Busch InBev, the new company created out of the merger between Belgian brewer InBev and St. Louis-based Anheuser-Busch Cos., made the cost-cutting decision because InBev already had sufficient brewing capacity in the U.K., media reports said. About 180 people are expected to lose their jobs with the closure, according to the Times of London.
Anheuser-Busch originally got a stake in London’s Stag Brewery (no relation to Belleville’s old Stag brewery) through a 1995 joint venture with British brewer Scottish Courage Ltd. Two years later, A-B acquired full control in the operations, which brewed Budweiser. It was A-B’s only brewery in Europe.
The brewery’s history reportedly goes back to the 15th century. (Hmm, maybe William Shakespeare quaffed some of the ale once made there).
The BBC quoted a brewing engineer who said the cost-cutting move was a shock. “We think we’re a lean, mean brewing outfit, and we want to be given a chance,” Simon McGuinness told the BBC.
Bloomberg reported the company also attributed the move to a sharp rise of U.K. tax on alcohol.
For more, see the Times of London or BBC stories.
(1 votes, average: 4 out of 5)
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this was coming before inbev was in the picture…
Who cares? I’m worried about Schlafly selling out to the Chinese!
Schlafly, the largest locally owned brewery in St. Louis. What did you expect from dem Brazilians.
well, with this as it was coming is incorrect. There was no plan at AB to close it, it has been brought up at times , but the presents of a AB brewery was important in the UK, the statement of shock is not what people across the pond are saying, It is much stronger words being used, but dont bet that beer sales in the UK will look favorably on this….. just watch.
In-Vest Bev already know that the brewery in St.Louis have got the highest
production cost in the US.They owed nothing to St.Louis.Expect the St.Louis AB brewery to be compleatly shut down in less than 5 years.
I think it is hilarious that the guy who was quoted from the brewery there in England has Guinness in his name…
Steve M,
The brewery in St. Louis is one of the most cost efficient breweries in the system so please get your facts straight.
In addition to bleeding the employees the masters at InBev will start to bleed the product quality as well. Beechwood aging will cease to exist in all but name only before very long. This is so like watching a loved one die of a long, protracted illness. A pox on the “free market” politicians that allowed this to take place while bailing out American automakers so they can build more cars in Canada and Mexico.
…because those Canadians are such cheap labor…
Actually, the Canadians ARE cheap(er) because they’re non-union. I would bet that the plants in Canada and Mexico are higher-tech than the ones in the states, too.
The labor costs in Belgium, where Inbev has a lot of breweries is MUCH higher than in the United States, also the labor is highly unionised and strikes are common. And yet inbev (and interbrew before that) managed to be a very succesful business. Clearly labor costs aren’t everything.
Marv, all the wealth we have in this country is due to free markets and capitalism. Git off your papmpered butt and read an economics book.
Or maybe move to Russia, France, Sweeden, lots of Socialist countries in the world w/80% tax rates. Go for it comrade.
Times change people. My great grandfather used to make wagons. The auto put him out of business. Grow up and educate yourself in the changing economy. NOBODY OWES YOU A JOB FOR LIFE!!!!!!! If running a company is so easy, start one yourself.
What is the lastest news on the packaging group? Our plant manager says. 1 They like how were are being run. 2 They are going to sell us. or 3 They have not gotten around to making a decision yet.
I offer this to aulshmo. I worked 39 years at AB and considered it part of my family and myself part of theirs. You obviously subscribe to the school wherein the last capitalist sells the rope to hang him. This is not the free market in action. This is InBev swooping in and overpaying for a company they can neither understand nor afford. They are in the process of running a 150 year old company that was the pride of a community and a workforce into the ground. Their buying AB makes as much sense as my buying a new Lexus and putting it up on blocks because I can’t afford to put gas in it. As for playing the Socialist card, I’m sure that my political friends would be suprised to find me thus accused. AB was not defeated in a free market system. No one could outbrew or out sell us. It took a combination of an outside enemy and a group of quislings on the board of directores to kill our company. They took the money and ran man. Get that through your thick skull.
Words cannot describe how FURIOUS I am with Brito and his greedy band of blood sucking “executives”. Peacock & his buddies should burn in hell. Every one of the executives that left walked away from the company with $100 million each. Many of their bonuses were based upon how many employees they could let go. Since such a large number of employees were being let go and the economy was in the tank, it was suggested that they double the normal severance. Brito told the executives that if they did, it would come out of their bonuses. 3 Guesses what they did…..kept it. Contractually, Brito was not supposed to touch our salaries in 2009. We hear they are going to reduce everyone’s salary by 25% and put a bonus structure in place with unattainable goals. Now, they are trying to find legal loopholes to stop the pension plan prior to the 3 years that they are contractually bound to keeping it. They also are discussing stopping the 401K match, reducing vacation time, and drastically increasing health care costs. A-B hires all type A personality employees who work very very hard to achieve goals. We WERE all proud to work for A-B and most of us worked 50-70 hours a week without getting paid a cent of overtime because we LOVED the company. I now will not work a second past quitting time and just about everyone I am talking to is looking for a job. BRITO IS A PHONY ASS. He shows up smiling trying to act like a sweet Jesuit Catholic. He is a greedy bastard and deserves to burn in hell with Peacock. Shame on all of them. I am an employee and WILL NEVER AGAIN PURCHASE ANOTHER A-B PRODUCT. I will also work hard to get everyone I know to purchase Miller/Coors. A friend of mine in IT was 7-1/2 months pregnant….she was laid off. Who is going to hire a pregnant woman?? She was an amazing employee too. I realize I sound bitter. WE ALL ARE. My biggest dream is that AB InBev goes under and Brito suffers the shame and embarrassment of what he has done.
Speaking of Peacock, is he in the witness protection program or something? I don’t think we at AB have heard from him since the announcement back on December 8th that there were going to be terminations. Is he showing up at One Busch Place? Is anybody talking to him?
Unfortunately, a lot of people post on here that know absolutely nothing about AB but continually spew nonsense about it. The St. Louis Brewery has one of the lowest conversion costs in the US - this includes competitors. There is no overlap between Inbev and AB (in the US) and as such, even if there was a Brewery to be shut down (which is highly improbable), it will not be St. Louis.
The Busch dynasty surrounded themselves with an army of people to support their domestic and global beer conquest.
SAB Miller and InBev got too big for Busch and being number 3 did not sit very favorable to this King.
InBev is about conquest and making money. They are willing to take risks and spend ridiculous amounts of money to purchase their piece of the pie.
Unfortunately in a war or conquest there are victims, and we’re just seeing the beginning
56 Billion is a lot of money and InBev is on their crusade to make money and let’s all hope that the business guys still know about making beer. Otherwise AB will be the Schlitz of the 21st century. We can learn from this history lesson that the business cost saving measures destroyed this beer baron.
The Anheuser-Busch that St. Louis grew up with is fading and the new King is in charge.
Bye-Bye to a King that St. Louis loved.
Actually Peacock spoke to employees back around Dec 16th– when he announced, that earnings were good, Merit increases would come in April to coincide with IN-Bev schedule, and that there would be NO Salary cuts, however, keep in mind that the April date is after the next round of layoffs following first quarter in March, I agree with Mary, Everyone working for AB felt like it was an extension of family, As far as Angry– I don’t understand why everyone feels like not purchasing AB products is the answer, not sure who you think you are hurting but its not Brito, nor any of his cronies, You are hurting what is left of this company. It it so sad what has happened, but many people remain for now, and we need all the support we can get, Its not easy trying to work at a place that really no longer exists, and feeling like you getting nothing in return- except a paycheck. If not for unemployment being at its worst, I will be looking elsewhere soon
Steve M. you are clueless. St. Louis brewery has the second lowest production costs of all 12 US breweries.
Poor Moral can hurt a company as much as high labor costs.
If you perceive you don’t have a future will you go the extra step? Some would say yes in order to save their job, some will just lose hope and become InBev Drones. I hope the employees can ride this out.