THE image of the blue star could be about to disappear from the region's pubs.

Scottish and Newcastle Breweries is to sell its pubs and restaurants, signalling the end of an era.

The familiar blue star has appeared outside the company's North-East pubs for decades.

But yesterday's announcement by the firm that it intends to sell its retail division could mean the star's days are numbered.

The iconic emblem first appeared on bottles of Newcastle Brown Ale in 1928 in recognition of its success at that year's International Brewer's Conference.

It will continue to feature on bottles and other products because the company's subsidiary beer business, which became Scottish Courage in 1995, is unaffected by the decision.

Scottish and Newcastle has 1,450 pubs, restaurants and hotel lodges, including the Chef and Brewer chain and T and J Bernard. It is thought to be worth about £2bn.

At the same time as yesterday's announcement, Scottish and Newcastle said it had agreed the terms of a £278m takeover deal to buy the UK's leading cider maker, Bulmers.

The disposal of the retail arm, which also includes the Premier Lodge budget hotel business, will enable the company to focus on its core brewing business and strengthen its balance sheet.

The group had originally proposed to sell a smaller number of the pubs but changed the plan when it became clear that interested parties were keen on running the entire estate.

Chairman Sir Brian Stewart said the sale was in the best interests of shareholders and the business.

Bulmers' brands will be added to Scottish and Newcastle's Scottish Courage subsidiary, which brews beers including John Smith's and Foster's.

The history of Scottish and Newcastle Beweries

1749: William Younger Brewery established in Leith, Edinburgh.

1770: John Barras brewery established in Gateshead.

1856: William McEwan Brewery established in Fountainbridge, Edinburgh.

1884: John Barras took over the Tyne Brewery.

1890: John Barras formed what was to become the Newcastle Breweries.

1931: William Younger and William McEwan breweries merged to form Scottish Brewers Ltd.

1960: Scottish Brewers and The Newcastle Breweries merge to form Scottish and Newcastle Breweries Ltd.

1990: Formation of Scottish and Newcastle's retail division, which was previously integrated with the beer business

1995: Formation of Scottish Courage Ltd following Scottish and Newcastle's acquisition of Courage.