MITCHELL'S Brewery in Lancaster is to close after 118 years brewing beer in the city.

The shock announcement comes as the independent, family business faced falling orders for its range of cask beers.

The brewery closure will mean the loss of local jobs but they have reaffirmed their commitment to the 92 pubs they own throughout North Lancashire and Cumbria.

The company invested heavily in its brewing business just 12 months ago and planning permission was submitted for a brewing museum but competition from the top league companies has proved too much for the small, independent firm.

One of the Mitchell's family, Bill Barker, said: "It is with considerable reluctance and sadness that we have had to take this route. Naturally, as an independent family brewery, with a 118 year heritage, it is not a decision we have taken lightly. We do not wish to completely lose our brands, which have a good local following, and we are currently in discussions with a national brewery to take over the brewing of Mitchell's Lancaster Bomber."

He added: "As a major local employer, Mitchell's is still firmly committed to the City of Lancaster."

The company's managing director, Dermot McCarthy, said: "It is with great regret that we have had to take this decision but in a declining market for cask beer, it is no longer commercially viable four our company to operate solely a cask beer brewing facility. Our market has changed even in a relatively short period. Today's market is very much discount and brand driven, therefore making it increasingly difficult for the small, low volume brewer to compete."

Brewery expert, Tony Holstead, said the news was a surprise but there had been rumours that the brewery was in trouble.

"Small brewers are falling like nine pins. There's basically too many pubs and too few drinkers," said Tony.

"Only 12 months ago Mitchells were spending heavily and talking about a visitor centre. I expect they'll sell the brewery as a prime development site close to the centre of Lancaster."

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