BOSSES at Blackburn's oldest brewery were bitterly disappointed today after losing out on a £300,000 contract to supply beer to Blackburn with Darwen Council.

Thwaites claim the lucrative contract for draught and packaged beers and lagers has gone to Belgian-owned Interbrew which bought out Whitbread's brewing interests earlier this year.

Sales and marketing director Paul Winter said the company was "puzzled" to miss out on the three-year deal to supply council-owned venues such as King George's Hall.

But a senior council official insisted the authority had followed the correct tendering procedures.

"The three-year contract was awarded to the company that offered the best price," said Steve Rigby, senior assistant director of community, leisure and cultural services.

"A number of companies submitted tenders and the process complied with European legislation. All bids were subject to a detailed and fair evaluation process which was approved by the elected members."

Thwaites is still unhappy, and Mr Winter said: "We are disappointed and frustrated, not to mention more than a little mystified. Our products and packages are producing record numbers of new, high-profile free trade customers, both regionally and nationally.

"We are attracting the likes of Lancashire County Cricket Club and Blackpool Pleasure Beach, not to mention a host of entrepreneurs operating multiple outlets.

"Thwaites is enjoying great success selling a little bit of Blackburn all over the country and beyond.

"It is therefore somewhat puzzling that we have not been able to replicate that right here on our own doorstep."