Hydes is to close its ageing Queens Brewery in Moss Side, Manchester, and move to a new facility within the locality later this year. The company has identified a number of suitable premises that meet its needs for the future and will commit an investment of some £2 million to the new site.

The new facility will be far more efficient than the existing plant and will focus exclusively on the production of high quality beers targeted at the growing cask ale sector, such as Hydes Original and Manchester’s Finest, as well as seasonals and specials.

Hydes hopes to find roles for as many existing staff as possible at the new site, although there are likely to be redundancies.

Hydes has also decided to withdraw from supplying the free trade market and is selling its free trade interests to Daniel Thwaites. This sale will complete on Monday. Hydes’ free trade sales team and some free trade support staff will transfer to Thwaites as part of this deal.

“This was a very difficult decision for us to take and although it will be sad to see brewing end at Queens Brewery, it is simply not sustainable,” said Hydes managing director, Chris Hopkins. “The site was built over 150 years ago and is not able to meet the challenges of efficient production and distribution of beer in the 21st century. Given the imminent conclusion of a major contract brewing arrangement, the site is not suitable for the company’s future requirements, particularly given the level of maintenance expenditure which will only increase as time goes by. We very much regret the likelihood of job losses, but in order for the company to remain competitive in a very challenging sector there is no realistic alternative.”

He added: “The proposed investment in the new brewery indicates Hydes’ continuing commitment to the brewing of great cask ales in Manchester. These changes will also allow for an increased management focus on the company’s pub estate and will accelerate plans for capital investment in refurbishments and the acquisition of new sites.”