How San Miguel closed Banks's brewery

Not all multinational corporations are created equal. The world's largest brewing corporation, ABInBev, towers above the others, having bought the second largest, SABMiller, in 2016. It's over twice the size of its closest competitor, Heineken, and nearly five times the size of Carlsberg. The latter is relevant to the sad closure of Banks's brewery. 

A mash tun a Banks's

Eleven years ago the two companies with rights to San Miguel beer, San Miguel Brewery (Philippines) and Mahou San Miguel (Spain) signed a cooperation agreement to promote their international businesses and position San Miguel as a global brand. To further its growth they had already partnered with Carlsberg to contract brew it in Britain, and it was a large part of the output of the Northampton brewery. 

But for a brand with global ambitions partnering with the world's biggest brewery seems like an obvious match. I have heard San Miguel eyes Brazil as a great opportunity and certainly ABInBev is very strong there from its AmBev division, whereas Carlsberg doesn't have much presence at all in the Americas. So, as what I believe is part of a global realignment, last year San Miguel moved its contract brewing in the UK from Carlsberg to ABInBev. 

Round open fermenters at Banks's

Losing the San Miguel contract left Carlsberg in the UK, which owned one giant factory and two large regional breweries, with a lot of surplus capacity. The giant factory wasn't going to go and Marston's has the small pack facilities, which left Banks's. So a contract change for a Spain and Philippines based international lager brand closed a 150 year old brewery in Wolverhampton that didn't even brew it. 

Casks at Banks's

I am dubious about supporting independent breweries over multinationals as a matter of principle. I've come across far too many scumbags in small breweries for that. But had Banks's not been part of a multinational it would still be with us. 

The closure of every historic brewery pains me. I love going round them and modern breweries just don't compare. That ABInBev in the UK has stretched its capacity to deal with the production of San Miguel has probably saved Camden Town brewery from closure, but I find that small consolation.