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Last Updated: Thursday, 30 June, 2005, 13:27 GMT 14:27 UK
Fountain dries as beer era ends
Fountain Brewery (picture by Scott Whitelaw)
Beer has flowed from the Fountain Brewery since the 1850s
One of Edinburgh's last breweries has closed its doors, ending 150 years of operation in the city.

Scottish and Newcastle (S&N) said it had to shut the Fountain Brewery because of over capacity in the UK and fierce competition in the beer market.

Since the brewery's closure was announced last year, about 170 staff have lost their jobs.

The Fountain Brewery opened in 1856 and in its heyday turned out about two million barrels of beer a year.

More recently it has been running at about half of its capacity.

Cost cutting

Scottish and Newcastle, which produces Kronenbourg and Foster's beers in the UK, argued that it did not make economic sense to keep it open.

Most of the redundant workforce have found other work or training, with 30 moving to the smaller Caledonian Brewery along the road.

This means the McEwans brands will still be made in Scotland but the bulk of beer production has moved south to Yorkshire.

When it announced the closure plan S&N said the changes would lead to annual savings of about 10m.

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