Scottish & Newcastle
Encyclopedia
Scottish & Newcastle plc was a "long alcoholic drinks
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...

" (LADs) company with positions in 15 countries, including UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

. It was headquartered in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

, Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...

, UK. In the last 20 years, S&N expanded significantly from its home base to become an international business with beer volumes growing almost tenfold. It was listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

 and was once a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....

 but it was acquired jointly by Heineken and Carlsberg in April 2008, with the company's assets being split between them. The trading name "Scottish & Newcastle UK" continued to be used, until November 2009, to denote the UK trading operation of Heineken International until it was renamed "Heineken UK". The Scottish & Newcastle name lives on through the former "S&N Pub Enterprises" leased pub division which has been renamed "Scottish & Newcastle Pub Company".

Development of the business

The Company was founded by William Younger I in 1749 in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

 as William Younger's Brewery. It merged with McEwan's in 1931 becoming Scottish Brewers. In 1960 it merged again this time with Newcastle Breweries
Newcastle Brown Ale
Newcastle Brown Ale is a beer produced by Heineken International. It was introduced in 1927 by Newcastle Breweries. In 2005, brewing was moved out of Newcastle upon Tyne for the first time, to Dunston on the other side of the River Tyne, and in 2010 moved entirely to Tadcaster, North Yorkshire...

 to form Scottish & Newcastle.

By 1985, the company had become a regional brewer focused on Scotland and the North of England, ranked number five in the UK and selling around 6 Mhl per annum. By 1995, with the purchase of rival brewing business Courage
Courage (brewery)
Courage is a former British brewery. The brands are now 100 per cent owned and brewed by Wells & Young's Brewery as part of a venture called Courage Brands Ltd.-History:...

, S&N had become the UK’s leading brewer, producing around 15 Mhl per annum. Its UK brewing division became known as Scottish Courage but this reverted to "S&N UK" in February 2006. Its Managed Pub division was known as "S&N Retail" with around 2,500 outlets in the estate. 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. By acquiring Hartwall
Hartwall
Hartwall is a beverage company based in Helsinki, Finland. It was founded in 1836. Its soft drinks range includes Hartwall Jaffa and Hartwall Novelle water. The company also owns the license for manufacturing and selling PepsiCo's Pepsi, 7 Up and Mountain Dew brands in Finland...

 in 2002, Finland’s leading beverage company business, S&N became 50% owners of Baltic Beverages Holding
Baltic Beverages Holding
Baltic Beverages Holding is a brewing company owned by Carlsberg Group. It is a significant operator in the brewing industry in Russia, Ukraine, the Baltic countries and Kazakhstan, most notably holding a controlling stake in Baltika Breweries...

 (BBH) encompassing brewing interests in Russia, Ukraine, Kazakhstan and the Baltic Countries of Latvia, Lithuania and Estonia. The remaining 50% of BBH was owned by Carlsberg, which gained full control after the takeover of S&N in 2008.

In July 2003, S&N acquired the Bulmers
H. P. Bulmer
H.P. Bulmer is a brewing company founded in 1887 in Hereford, England. The founder was Percy Bulmer, the twenty-year-old son of the local rector at Credenhill...

 cider business, adding the Strongbow
Strongbow Cider
Strongbow is a brand of dry cider manufactured in England by H.P. Bulmer. Popular since it was launched in 1962, it is the best selling cider in the world, and its sales account for more than 20% of all the cider sold in the UK...

, Scrumpy Jack
Scrumpy Jack
Scrumpy Jack is a brand of dry cider, 6% alc. vol., produced in Hereford by Bulmers, a subsidiary of Heineken. Scrumpy Jack is also produced under licence in Devon by Czk1....

 and Woodpecker
Woodpecker Cider
Woodpecker Cider is an alcoholic drink originally made in 1894 by Percy Bulmer in Herefordshire, today it is still brewed by Bulmers .Woodpecker is noted for having a lower percentage of alcohol than most other ciders, as well as its sweet taste. It is usually available in pubs and bars and is...

 brands to its portfolio, together with the UK's biggest cider mill and orchards in Hereford.

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) with contracts to look after some 2,000 pubs on behalf of banks and other pub companies.

2004 saw some radical cost cutting measures, particularly within the UK where it was noted by analysts that the cost base was too high. During the year, the Fountain Brewery
McEwan's Brewery
McEwan's is a brand of ales, with the draught beers brewed at the Caledonian Brewery in Edinburgh, Scotland and the canned and bottled beers brewed at the Eagle Brewery, Bedford, England. It is now owned by Wells & Youngs following the sale of the brands by Heineken in 2011...

 in Edinburgh was closed, followed some months later by the Tyne Brewery in Newcastle
Newcastle upon Tyne
Newcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...

. 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 serviced 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
Caledonian Brewery
Caledonian Brewery is a Scottish brewery founded in 1869 in the Shandon area of Edinburgh, Scotland. The Caley, as it is known locally, is the only survivor of over 40 breweries that operated in Edinburgh during the 19th century, although a number of independent breweries have opened in recent...

 in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

 and the Northern Clubs' Federation Brewery in Gateshead
Gateshead
Gateshead is a town in Tyne and Wear, England and is the main settlement in the Metropolitan Borough of Gateshead. Historically a part of County Durham, it lies on the southern bank of the River Tyne opposite Newcastle upon Tyne and together they form the urban core of Tyneside...

 added to the business.

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. This work is now contracted by the JV, to a new company Innserve Ltd. Innserve supplies, installs and maintains drinks dispense systems in 98,000 Pubs and bars around the UK.

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.

Scottish Courage

Scottish Courage employed 40,000 people in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, brewing beer at:
  • The Fountain Brewery, Edinburgh
    Edinburgh
    Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

     - closed 2004
  • The Tyne Brewery, Newcastle-upon-Tyne - closed 2004
  • The Federation Brewery, Gateshead
    Gateshead
    Gateshead is a town in Tyne and Wear, England and is the main settlement in the Metropolitan Borough of Gateshead. Historically a part of County Durham, it lies on the southern bank of the River Tyne opposite Newcastle upon Tyne and together they form the urban core of Tyneside...

     - bought 2004, closed 2010
  • T & R Theakston's Brewery, Masham
    Masham
    Masham is a small market town and civil parish in the Harrogate district of North Yorkshire, England. It has a population of 1,235. Situated in Wensleydale on the western bank of the River Ure, the name derives from the Anglo-Saxon "Mæssa's Ham", the homestead belonging to Mæssa. The Romans had...

     (S&N had a very minority holding in this brewery. It is now once again owned by the Theakston family)
  • John Smith's Brewery
    John Smith's Brewery
    John Smith's is a brewery founded in 1758 by Backhouse & Hartley at Tadcaster in North Yorkshire, England. John Smith bought the brewery in 1847. John Smith's is the sixth highest selling beer brand in the United Kingdom, and the highest selling ale brand. The brewery is currently owned by...

    , Tadcaster
    Tadcaster
    Tadcaster is a market town and civil parish in the Selby district of North Yorkshire, England. Lying on the Great North Road approximately east of Leeds and west of York. It is the last town on the River Wharfe before it joins the River Ouse about downstream...

  • The Berkshire Brewery, Reading
    Reading, Berkshire
    Reading is a large town and unitary authority area in England. It is located in the Thames Valley at the confluence of the River Thames and River Kennet, and on both the Great Western Main Line railway and the M4 motorway, some west of London....

     (closed April 2010)
  • The Royal Brewery, Manchester
    Manchester
    Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...

  • Beamish Brewery, Cork
    Cork (city)
    Cork is the second largest city in the Republic of Ireland and the island of Ireland's third most populous city. It is the principal city and administrative centre of County Cork and the largest city in the province of Munster. Cork has a population of 119,418, while the addition of the suburban...

  • Crawford Brewery, Cork


Beers bearing the Courage name include:
  • Courage Bitter
  • Courage Best Bitter
  • Courage Directors Bitter
  • Courage Dark Mild
  • Courage Directors Winter Warmer
  • John Courage
  • John Courage Amber
  • John Courage Export Lager


Other Scottish Courage brands include:
  • Beamish
  • McEwan's
    McEwan's Brewery
    McEwan's is a brand of ales, with the draught beers brewed at the Caledonian Brewery in Edinburgh, Scotland and the canned and bottled beers brewed at the Eagle Brewery, Bedford, England. It is now owned by Wells & Youngs following the sale of the brands by Heineken in 2011...

  • Newcastle Brown Ale
    Newcastle Brown Ale
    Newcastle Brown Ale is a beer produced by Heineken International. It was introduced in 1927 by Newcastle Breweries. In 2005, brewing was moved out of Newcastle upon Tyne for the first time, to Dunston on the other side of the River Tyne, and in 2010 moved entirely to Tadcaster, North Yorkshire...

  • John Smith's
    John Smith's Brewery
    John Smith's is a brewery founded in 1758 by Backhouse & Hartley at Tadcaster in North Yorkshire, England. John Smith bought the brewery in 1847. John Smith's is the sixth highest selling beer brand in the United Kingdom, and the highest selling ale brand. The brewery is currently owned by...

  • Websters


Brands licensed to them include:
  • Foster's
    Foster's Lager
    Foster's Lager is an internationally distributed Australian brand of 5.0% abv pale lager, It is a product of Foster's Group brewed under licence in several countries, including the U.S. and Russia...

  • Holstein
  • Kronenbourg
    Kronenbourg
    Kronenbourg Brewery is a brewery founded in 1664 by Geronimus Hatt in Strasbourg, France as the Hatt Brewery. The name comes from the area where the brewery relocated in 1850. The company is owned by the Carlsberg Group...

  • Miller Pilsener


Hofmeister was a 3.2% abv
ABV
ABV is a three-letter acronym that may refer to:* Alcohol by volume, a measure of the alcohol content of alcoholic drinks* Nnamdi Azikiwe International Airport, Abuja, Nigeria, from its IATA airport code...

 pale lager
Pale lager
Pale lager is a very pale to golden-coloured beer with a well attenuated body and a varying degree of noble hop bitterness. The brewing process for this beer developed in the mid 19th century when Gabriel Sedlmayr took pale ale brewing techniques back to the Spaten Brewery in Germany and applied it...

 produced by Scottish Courage (later Scottish & Newcastle) from the 1980s to 2003. 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
Pork pie hat
A pork pie hat is a type of hat made of felt or straw. It is a type of fedora which has a cylindrical crown and flattish top. This style of crown is called a "telescopic crown", but the hat overall resembles the boater hat. It is short and has an indentation all the way around its top, allowing...

.

Acquisition by Carlsberg/Heineken consortium

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. 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. The offer was immediately rejected by the Board of S&N, who believed that it significantly undervalued the worth of the S&N group. 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".

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". 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 £8.00 per share.

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 £8.00 per share. This offer had the full support of the S&N Board and was recommended to shareholders.

On 31 March 2008, shareholders approved the £7.8 billion takeover by Heineken and Carlsberg. The acquisition was completed on 29 April 2008 as S&N's shares were delisted from the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...

.

On 23 November 2009, the company changed its name to Heineken UK Ltd to reflect the parent company's name.

Operations

S&N owned or co-owned three of the top ten beers in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

.
  • Baltika (stake acquired by Carlsberg)
  • Foster's
    Foster's Lager
    Foster's Lager is an internationally distributed Australian brand of 5.0% abv pale lager, It is a product of Foster's Group brewed under licence in several countries, including the U.S. and Russia...

     (European rights, now owned by Heineken)
  • Kronenbourg
    Kronenbourg
    Kronenbourg Brewery is a brewery founded in 1664 by Geronimus Hatt in Strasbourg, France as the Hatt Brewery. The name comes from the area where the brewery relocated in 1850. The company is owned by the Carlsberg Group...

     1664. (now owned by Carlsberg, although S&N UK/Heineken retain UK rights on a 50 year supply contract)


In addition to these key brands, its portfolio included other well-known drinks brands (acquirer in brackets):
  • John Smith's
    John Smith's Brewery
    John Smith's is a brewery founded in 1758 by Backhouse & Hartley at Tadcaster in North Yorkshire, England. John Smith bought the brewery in 1847. John Smith's is the sixth highest selling beer brand in the United Kingdom, and the highest selling ale brand. The brewery is currently owned by...

     (Heineken)
  • Strongbow Cider
    Strongbow Cider
    Strongbow is a brand of dry cider manufactured in England by H.P. Bulmer. Popular since it was launched in 1962, it is the best selling cider in the world, and its sales account for more than 20% of all the cider sold in the UK...

     in the UK. (Heineken)
  • Sagres in Portugal
    Portugal
    Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

     (Heineken)
  • Lapin Kulta
    Lapin Kulta
    Lapin Kulta was a brewery in the Lapland town of Tornio, Finland. As of August, 2010, it is only brewed in the southern Finnish town of Lahti. It was founded in 1873 under the name Torneå Bryggeri Aktiebolag...

     in Finland
    Finland
    Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

     (Heineken)
  • Mythos
    Mythos Brewery
    Mythos Brewery is the second largest Greek brewery, best known for its Mythos brand. The company, a subsidiary of Carlsberg since 2008, also imports a number of non-Greek beers into the country.-History:...

     in Greece
    Greece
    Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

     (stake acquired by Carlsberg)
  • Maes pils
    Maes pils
    Maes pils is a brand of Belgian pils brewed by Alken-Maes. The beer finds its origins in the beer produced in 1930 for Antwerp Universal Exposition called Prima Maezenbier...

     in Belgium
    Belgium
    Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

     (Heineken)
  • Kingfisher in India
    India
    India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

     (stake acquired by Heineken)
  • Beamish Stout
    Beamish and Crawford
    Beamish and Crawford is the longest-established brewery in Cork, Ireland. Established in 1792 by William Beamish and William Crawford on the site of an existing porter brewery, it has had a number of owners over the centuries...

     in Ireland (Heineken)
  • Bulmers Cider
    Bulmers
    Bulmers Cider is one of a number of brands owned by H. P. Bulmer of Hereford. It is one of the leading premium bottled cider brands in the UK with a number of variants including Bulmers Original & Pear.-History:...

     in the UK. (Heineken)
  • Newcastle Brown Ale
    Newcastle Brown Ale
    Newcastle Brown Ale is a beer produced by Heineken International. It was introduced in 1927 by Newcastle Breweries. In 2005, brewing was moved out of Newcastle upon Tyne for the first time, to Dunston on the other side of the River Tyne, and in 2010 moved entirely to Tadcaster, North Yorkshire...

    , heartland in the North East of England and now all over America. (Heineken)
  • Grimbergen
    Grimbergen (beer)
    Grimbergen is a group of Belgian abbey beers first brewed in 1128 at the abbey that Saint Norbert of Xanten built for the Premonstratensian canons regular in Grimbergen. They became famous for providing hospitality and their home-brewed beer to visitors, and handed down the recipe over the...

    , a Belgian Abbey beer. (Heineken)
  • McEwan's in Scotland
    Scotland
    Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...

    . (Heineken)

Division of the business between the Carlsberg/Heineken consortium

Heineken acquired:

S&NUK; Beamish and Crawford
Beamish and Crawford
Beamish and Crawford is the longest-established brewery in Cork, Ireland. Established in 1792 by William Beamish and William Crawford on the site of an existing porter brewery, it has had a number of owners over the centuries...

 - ROI; Hartwall
Hartwall
Hartwall is a beverage company based in Helsinki, Finland. It was founded in 1836. Its soft drinks range includes Hartwall Jaffa and Hartwall Novelle water. The company also owns the license for manufacturing and selling PepsiCo's Pepsi, 7 Up and Mountain Dew brands in Finland...

 - Finland; Alken Maes - Belgium; Central de Cervejas
Central de Cervejas
Sociedade Central de Cervejas is a Portuguese brewery, founded in 1934. Its main output is the Sagres brand of beers...

 - Portugal; Indian JV with UB;
US export business and other venture markets.

Carlsberg acquired:

Remaining 50% of BBH; Kronenbourg
Kronenbourg
Kronenbourg Brewery is a brewery founded in 1664 by Geronimus Hatt in Strasbourg, France as the Hatt Brewery. The name comes from the area where the brewery relocated in 1850. The company is owned by the Carlsberg Group...

 - France; Mythos (beer) - Greece; Chongqing joint venture in China; Venture markets:- Switzerland; Africa; Hungary; Luxembourg; Indian Ocean; South and Central America
Andorra and Asia.
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