Local brewers' volumes soar
The volume of beer sold by local brewers defied the overall decline of the drinks market and grew by 10 per cent in 2008, according to the Society of Independent Brewers (SIBA).
The organisation's Local Brewing Industry Report, published today (Monday, February 23) also says that three per cent was contributed by new brewers not operational throughout all of 2007, leaving like-for-like volumes up by seven per cent.
The growth has been achieved through increased distribution. Defining local brewers as those producing below 30,000HL per annum (equivalent to 350 barrels a week), the average number of pub customers for each of these companies grew from 79 in 2007 to 94 last year. Pubs' throughput of local beers has grown by an average of nine per cent over the last two year.
According to the report, during 2009, 81 per cent of brewers plan to invest in new equipment, 82 per cent in marketing and 75 per cent in increasing brewery capacity to meet rising volume demands. Small brewers' production estimates for 2009 anticipate growth of 15 per cent.
SIBA also attributed the success to Progressive Beer Duty (PBD), the system of tax breaks for small brewers introduced in 2002.
SIBA chief executive Julian Grocock said: "These are impressive figures that speak volumes for the talent, entrepreneurship and hard work of small brewers throughout the UK.
"They also demonstrate how the right fiscal support, in the shape of PBD, can encourage companies not only to thrive, but to invest in their future. We applaud this government's commitment to retain PBD, and urge them to reconsider other, punitive aspects of their taxation policy, which risk causing irreparable damage to the sector."
