Rival Saltaire Brewery to Rescue Black Sheep Owner

The Keystone Brewing Group, known for its well-regarded brands such as Black Sheep and Fourpure, is on the verge of a major rescue. The Yorkshire-based Saltaire Brewery has stepped in to support Keystone, which has faced significant financial difficulties.

Details of the Rescue Deal

Saltaire Brewery’s proposed transaction aims to preserve the livelihoods of Keystone’s workforce, estimated to be between 150 and 200 employees. If all goes according to plan, the deal could be finalized as soon as Thursday through a pre-pack administration.

• The pre-pack administration allows a buyer to secure a company’s assets immediately after it enters administration.

Background on Keystone Brewing Group

Keystone Brewing Group has recently struggled with various pressures, including rising costs and declining consumer confidence. Earlier this year, it was reported that the company was nearing collapse.

The company holds sales and distribution agreements with notable beer brands such as Magic Rock and Hofmeister. Black Sheep, a flagship brand of the company, was founded in 1992 by a member of the Theakston brewing family.

Historical Context

In 2023, Black Sheep had its own brush with administration before being saved by Breal, its current owner. Breal has a track record of rescuing smaller breweries in financial distress.

Leadership and Goals

Steve Cox, an industry veteran, leads Keystone with an ambitious target of achieving annual sales of £100 million by 2028.

Saltaire Brewery Ownership

Saltaire Brewery operates under the Paramount Retail Group, a conglomerate involved in various sectors including pet food, confectionery, and home improvement.

Insolvency Preparations

FRP Advisory, a professional services firm, is managing the insolvency preparations for Keystone Brewing Group. While a representative from FRP has refrained from commenting, inquiries have been made to Paramount regarding the upcoming transaction.