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Greene King has agreed to sell its popular Old Speckled Hen brand to Damm UK, the owner of Estrella Damm, as the brewing giant shifts its focus away from producing beer for supermarket shelves.

The significant deal is expected to lead to the long-term closure of the Westgate Brewery in Bury St Edmunds, although Greene King is concurrently developing a new site within the town.

Damm UK, the British arm of Spanish brewer SA Damm, will acquire the entire Old Speckled Hen family of beers, which includes Old Golden Hen, Old Crafty Hen, Old Master Hen, and Low Alcohol Old Speckled Hen.

To ensure a seamless transition and maintain consistent flavour, Damm UK will initially continue brewing the beers at the Westgate Brewery.

However, production will subsequently be relocated to Damm’s recently constructed brewery in Bedford, ultimately resulting in the Westgate facility’s closure.

Despite the change in ownership and production location, Old Speckled Hen will remain readily available in major UK supermarkets and other retailers.

This divestment forms part of a broader strategic realignment for Greene King, which aims to concentrate more intently on its extensive pub estate.

The Suffolk-based firm said it will move away from producing beer to be sold in the off trade – the industry term used for retailers including supermarkets.

Old Speckled Hen brands account for more than half of Greene King’s beers sold in UK retailers.

Greene King, which runs 2,500 pubs, restaurants and hotels, will continue to make cask ale and craft beer including Greene King IPA and Abbot Ale but will focus on selling these in pub venues.

The group said it will push ahead with the strategy from summer 2027 with the opening of a new £40 million brewery in Bury St Edmunds.

Nick Mackenzie, chief executive of Greene King, said: “Brewing beer in Bury St Edmunds to be sold in pubs is what we have been doing for more than 200 years.

“By making this core to our renewed brewing strategy, we are proposing optimising our brewing operations to focus on winning where we are strongest, delivering our beers to the pubs where our customers most love to drink them and setting Greene King up for long-term profitable growth.”

Greene King said its Scottish Belhaven brewing business will not be impacted by the changes.

Luke White, managing director of Damm UK, said: “Old Speckled Hen is an iconic British ale brand with a rich heritage and loyal following, and we are proud that Greene King has chosen Damm UK to take the brand forward into its next chapter.

“We have great respect for the history Greene King has built around Old Speckled Hen over the last 25 years and look forward to working closely together throughout the transition period to ensure continued success for the brand, customers and consumers alike.”