Tetley brewery to close after 186 years

The Danish brewer said it would shut down the iconic plant in 2011 following a year-long review of its supply chain.

The decision, which took business leaders and politicians in Leeds by surprise, comes in the wake of Carlsberg's £7.8bn acquisition of former Tetleys owner Scottish & Newcastle in January this year.

Carlsberg said it would consult with employees ahead of the closure, but while some staff could move to the company's other UK brewery in Northampton most are expected to lose their jobs.

The brewer said it had taken the "difficult" decision as it could "no longer justify running two major breweries in the UK."

The closure comes as the company tries to "maximise efficiency in order to remain competitive in the face of increasingly challenging market conditions resulting from falling consumption, higher duties, input inflation and regulatory pressure."

"Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future," said Nick Webb, supply chain director of the UK operations.

The decision was attacked by Camra who labelled it "probably the worst decision in the world for real ale drinkers."

The lobby group criticised Carlsberg for "failing to promote the famous Tetley beers at a time when consumer interest in real ales is growing."