YOUNG’S, the London brewer, is considering the option of quitting brewing and outsourcing production of its famous ales to a third party, The Times has learnt.

The move is one of a small number of options being investigated by the family-controlled company in the wake of its decision to investigate the development potential of the historic Ram Brewery in Wandsworth.

Until now it had been assumed that Young’s would use the proceeds from selling the Ram Brewery to build a new brewery near by or elsewhere within the London region.

But The Times understands that the company is also looking at the option of farming out production of ales including Young’s Bitter, Waggle Dance, Winter Warmer and Young’s Special to a rival.

Analysts suggested Shepherd Neame in Kent, Charles Wells in Bedford and Hall & Woodhouse in Dorset as possible partners, although the closest geographically would be Fuller, Smith & Turner, which brews such ales as London Pride and ESB at Chiswick, West London.

A barrier to a deal with Fuller’s could be the fierce rivalry between the companies. In addition, while the Griffin Brewery in Chiswick has sufficient capacity to take on extra production, that would reduce if it closes the Hampshire Brewery in Horndean acquired as part of the recent takeover of George Gale & Co.

However, some analysts believe that the appointment two years ago of Stephen Goodyear as chief executive of Young’s has brought a more progressive approach. “There aren’t nearly as many sacred cows as there used to be,” said one. “Who knows? Fuller’s and Young’s could even end up merging.”

Young’s announced two years ago that it was discussing the development potential of the 5.5-acre Ram Brewery site with Wandsworth Borough Council as part of a wider redevelopment of the town centre.

Since then, Multiplex, the developer of the new Wembley Stadium, has emerged as the front-runner to buy the site from Young’s in a deal worth up to £100 million, although it is not clear whether the brewer would wait for planning consent before selling.

At the time of the original announcement, John Young, the group’s octogenarian chairman, said that he was committed to brewing within the borough of Wandsworth and explicitly ruled out any move towards outsourcing.

However, a spokesman for Young’s confirmed yesterday: “We have made it clear we will look at everything.” Sources within the company suggested that much would depend on whether the council was willing to make a sizeable grant to keep Young’s in the borough.

The possibility of Young’s pulling out of brewing after 174 years would inevitably create an outcry among real ale enthusiasts, even though outsourcing deals are becoming increasingly prevalent.

Wolverhampton & Dudley Breweries recently took over production of Bass Ale under a contract with InBev, the Belgian owner of Stella Artois and Beck’s lagers, and most experts judge that the ale’s quality has actually improved.

BREWING TRADITION THAT GOES BACK TO ELIZABETHAN TIMES

THERE has been commercial brewing at the Ram Brewery in Wandsworth since the reign of Queen Elizabeth I. In 1581 Humphrey Langridge is recorded as brewing beer at the Ram, a prominent Wandsworth inn that is now the site of the Brewery Tap pub and tun room.

After various changes of ownership and considerable expansion of the site, the brewery, together with 80 pubs, was acquired by Charles Allen Young and Anthony Fothergill Bainbridge.

The new partnership suffered a setback in 1832 when a fire destroyed most of the brewhouse, but it was quickly rebuilt and in 1835 a new beam engine was erected inside the brewery. It is thought to be the oldest beam engine of its kind in the world still in working condition and in its original location. It helped to provide steam power in the brewery up until 1976.

The Young-Bainbridge partnership was summarily dissolved in 1883 after Bainbridge’s nephew, Herbert, ran off with the wife of Young’s son, who was also called Charles. So was born Young & Co.

The company listed its shares on the London Stock Exchange in 1955 and in 1962 John Young was appointed — and remains — chairman. The brewer recently announced plans to scrap its B shares and move its listing on to the Alternative Investment Market.

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