Greene King has struck a deal to sell Old Speckled Hen to the owner of Estrella Damm as it shifts away from producing beer for sale in supermarkets.
The move is also expected to lead to the closure of the brand’s Westgate Brewery in Bury St Edmunds in the long term, although Greene King is building a new site in the town.
Damm UK, the British arm of Spanish brewer SA Damm, has agreed to buy the Old Speckled Hen group of beers, which also includes Old Golden Hen, Old Crafty Hen, Old Master Hen and Low Alcohol Old Speckled Hen.
It will continue brew the beer at the Westgate Brewery to ensure continuity of supply and consistent flavour over a handover period.
However, the group will then shift brewing of the beers to Damm’s recently built brewery in Bedford, leading to the eventual closure of Westgate.
Old Speckled Hen will continue to be available in the major UK supermarkets and other retailers as a result.
The move is part of a wider change in strategy from Greene King as it continues to focus further on its pubs.
The Suffolk-based firm said it will move away from producing beer to be sold in the off trade – the industry term used for retailers including supermarkets.
Old Speckled Hen brands account for more than half of Greene King’s beers sold in UK retailers.
Greene King, which runs 2,500 pubs, restaurants and hotels, will continue to make cask ale and craft beer including Greene King IPA and Abbot Ale but will focus on selling these in pub venues.
The group said it will push ahead with the strategy from summer 2027 with the opening of a new £40 million brewery in Bury St Edmunds.
Nick Mackenzie, chief executive of Greene King, said: “Brewing beer in Bury St Edmunds to be sold in pubs is what we have been doing for more than 200 years.
“By making this core to our renewed brewing strategy, we are proposing optimising our brewing operations to focus on winning where we are strongest, delivering our beers to the pubs where our customers most love to drink them and setting Greene King up for long-term profitable growth.”
Greene King said its Scottish Belhaven brewing business will not be impacted by the changes.
Luke White, managing director of Damm UK, said: “Old Speckled Hen is an iconic British ale brand with a rich heritage and loyal following, and we are proud that Greene King has chosen Damm UK to take the brand forward into its next chapter.
“We have great respect for the history Greene King has built around Old Speckled Hen over the last 25 years and look forward to working closely together throughout the transition period to ensure continued success for the brand, customers and consumers alike.”
