S&N develops thirst for premium brands

SCOTTISH & Newcastle, long associated with mass market beers such as Foster's and John Smith's, is heading upmarket in a drive to revive a slump in sales.

Jeremy Blood, who heads the Heineken-owned business in the UK, has revealed plans to "premiumise" the brands to target more discerning beer drinkers.

In his first interview since the £7.8bn takeover, Blood says the new owners have "reinvigorated our passion for beer".

Heineken paid £3.3bn for its share of the Edinburgh brewer last April, handing the Amsterdam-based firm S&N's UK business, which includes Kronenbourg, Strongbow and an estate of more than 2,500 pubs.

Blood says that central to the change is a bid to emulate the whisky industry by introducing premium products that reflect a long-term commitment to beer and cider.

He said: "We lost some of our reverence for beer, we cut corners. It (the takeover] has reinvigorated our passion for beer. We used to call them manufacturing sites. Now we call them breweries or cider mills.

"It is about investing long term in our premium brands in such a way that people will pay more. It is only by creating that sort of value that the beer industry will be sustainable in the UK."