THE closure of the brewery at Castle Eden is the latest blow to the industry in the North-East.

In July 1999, workers in Sunderland were facing the same uncertainty as some at Castle Eden are contemplating.

The Swallow Group closed its Vaux brewery and sold most of its pubs, as it turned its attention to hotels.

More than 300 jobs were lost when a buyer failed to come forward and a management buy-out failed to save the brewery and pubs.

At the time, Swallow spokesman Hilary Florek said: "The harsh reality of the brewing business is that you can buy beer on the open market at prices that are considerably lower than we were able to brew at."

The low cost of lager has also been cited as a reason for W&DB to sell Camerons.

A similar scenario was unfolding yesterday at the announcement of the sale of Camerons.

Retail managing director Derek Andrew said: "The truth is we can buy lager as cheaply as we can brew it."

But a determination to maintain brewing in the North-East led the Hartlepool business to be sold to Castle Eden, rather than the site being handed over for development.

The loser in the deal was Castle Eden brewery, which now faces demolition.