LEEDS (AFP) — Drinks giant Carlsberg said on Wednesday it was closing a historic brewery with the loss of 170 jobs, blaming falling beer consumption and the wider economic crisis for its decision.
There has been a brewery on the site in Leeds since 1822, although it originally produced only beer Tetley.
The British arm of the Danish brewer said the imposing brick building would close in 2011.
Marketing director Darran Britton said the company was facing "unprecedented" pressures because of falling sales, pub closures, and increased costs.
A change in drinking habits has sent the beer market into a general decline for a number of years but sales have slumped by between seven percent and eight percent in recent months, he said.
"Five pubs are closing every day and it is a trend which is accelerating," Britton said.
"It is a reality of the market -- people are drinking less beer."
In addition, smoking in pubs and other enclosed public places was banned in England in 2007, prompting some publicans to complain of a drop in business.
Carlsberg, the world's fifth-biggest brewer in terms of volume, will continue to brew at its other site in England.
Beer consumer group Camra, which campaigns to defend traditional ales against competition from European-style lagers, attacked the decision to close the Leeds site as "short-sighted" and said Carlsberg should have used the brewery site to develop its Tetley brand.
"Recent statistics clearly show that real ale is performing better than other beer styles in a declining market," said Camra vice-chairman Bob Stukins.
Carlsberg posted increased third-quarter profit globally on Wednesday but said weakening British and Baltic markets would have a detrimental effect on full-year earnings.
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