SIBA report shows local beer sales up 6.8%

By Adam Pescod

- Last updated on GMT

SIBA report shows local beer sales up 6.8%
Volume sales of local beer rose by an estimated 6.8% last year to over 1.4 million barrels, according to the Local Beer Report, published today by the Society of Independent Brewers (SIBA).

It follows the news that on-trade beer sales declined by 4.7% in the same period, according to the latest Beer Barometer from the British Beer & Pub Association.

The report, based on a survey of 315 brewers belonging to SIBA – approximately half of its total membership – shows that independent brewers now employ nearly 5,000 people directly and the majority are investing to generate further growth and employment opportunities.

SIBA credits that Government’s introduction of the Small Breweries’ Relief (SBR) on beer duty in 2002 for the continued growth of the local brewing industry in the UK.

The report states that “the crucial role of government through the introduction of SBR cannot be underestimated,” and adds that 85% of survey respondents would struggle without SBR, and more than half believe their brewery would fail.

The report goes on to say that 85% of SIBA members’ output is cask ale – a 5% increase on last year’s figure. Meanwhile, 16% are producing some keg beer, while 75% offer bottled beers.

SIBA’s Direct Delivery Scheme (DDS), launched in 2002, produced sales of more than £12 million last year – a 3% increase on 2011.

However, the report said that as tie relaxations and alternative free-of-tie buying take hold in a growing number of pub estates, DDS sales have begun to level out, replaced by direct sales by SIBA brewers.

SIBA chief executive Julian Grocock said: “SIBA’s 11th​ Local Beer Report once again highlights the valuable contribution made by smaller brewers to their local economies and communities.

“Small Breweries’ Relief has helped the nation’s entrepreneurial brewers to create a vibrant, young, craft brewing industry, creating thousands of jobs, and investing in the communities where they are based and which in turn support them, creating a virtuous circle of local sustainability.”

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