A MAJOR spirits and beer giant has closed a distillery and shifted production to another site to “future proof” the brand.
Diageo has shuttered the Chase Distillery in Hereford, west England, known for its production of Chase-branded vodka and gin spirits.
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A Diageo spokesperson said: “To future proof Chase, we took the decision to renovate the liquid, revitalise the packaging, and transform the brand supply to drive its efficiency.
“These developments are designed to create future growth opportunities for the brand.”
Diageo first announced it would close the Chase Distillery in June last year, in accounts filed to Companies House.
The accounts also reported a pre-tax loss of £3.2million, down from around £3.4million the year before.
Read more on Store Closures
The report read: “In the last quarter of the current financial year, the directors initiated a Chase brand redesign program based on a decision by the Diageo Group.
“This program will result in the transfer of all production activities to Diageo Scotland Limited, the brand owner of Chase.
“Management intends to proceed with the liquidation of the company once operations have been successfully transferred and liquidation arrangements can be made.”
The closure of the Chase Distillery comes after Magic Rock Brewery, in Huddersfield, announced it intended to appoint administrators.
The popular beer brewery, which makes IPAs such as Cannonball and magic Haze, has reportedly drafted in lawyers to help oversee the process.
News of the notice, which doesn’t necessarily mean a business while close, was met with devastation from locals and craft beer fans.
One local said: “So sad, this is why we need to look after each other.”
While another added: “We’re gutted. Such a great place for us to go as a family with such a nice vibe to be able to meet with friends.”
TROUBLE FOR BREWERIES
It comes amid a tough period for the wider craft beer sector as it grapples with rising costs and weak consumer spending.
In November, fellow craft brewer ORA Brewing said it would close its taproom in Tottenham, London.
The Carlsberg Marston’s Brewing Company (CMBC) also closed its Wolverhampton’s Banks’s Brewery late last year.
Elsewhere, Cellar Head Brewing Company and Tap Room also fell into administration after attempts to find a buyer for the business failed.
Even pub giant Greene King, which owns 1,600 boozers across the country, was forced to shut down its 200-year-old Bury St. Edmunds brewery.
Magic Rock Brewery, the maker of IPAs such as Cannonball and Magic Haze announced its intent to appoint administrators in January.
The number of pubs in England and Wales dipped below 39,000 for the first time after hundreds of locals closed in 2024.
The government data from last month, analysed by real estate specialists Altus Group, showed the overall number of pubs across the two countries fell to 38,989.
Meanwhile, 412 pubs were demolished or converted for other uses.
Over 34 pubs a month called last orders for the final time in 2024, the sharpest fall in pub numbers since 2021.
Alex Probyn, from Altus Group, said many publicans had expressed major concern over upcoming hikes to employer National Insurance contributions, the minimum wage and business rates discount being slashed from 75% to 40% later this year.
“Many pubs simply will no longer be viable making plots even more attractive for alternative investment,” he added.
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
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