Camerons Brewery has clinched a crucial deal with Scottish & Newcastle.

The Hartlepool firm was chosen to brew ScotCo's premier product, Kronenbourg 1664, for the forseeable future.

Kronenbourg is seen as the jewel in the crown of the Scottish & Newcastle group's stable of beer labels.

The agreement involves Camerons distributing Foster's, John Smith's and Kronenbourg 1664, together with a range of premium packaged beers, wines and spirits from the Scottish Courage portfolio to its tied and free trade customers.

Contract brewing of Kronenbourg 1664 will start at Hartlepool this month.

David Soley, managing director, Camerons Brewery, said: "Under the ownership of Scottish & Newcastle, Kronenbourg 1664 has forged a reputation for being one of the most dynamic brands in the UK beer market and we are delighted to be brewing and distributing the brand as it enters the most exciting period in its long history. "

The Hartlepool brewery employs 130 staff, some of whom have been perfecting the Kronenbourg arm of production output over the past few months.

A spokesman said: "It firmly establishes the brewery here. It is one of a number of strategic avenues we have been going down in addition to increasing the sales of our own brands."