Brewery numbers continue to drop despite strong sales
Figures from the Society of Independent Brewers & Associates (SIBA)’s UK Brewery Tracker showed the total number of active breweries are now at 1,748 – a net decline of 29 since the end of the first quarter of 2024.
When broken down into regions, the report revealed the Midlands was the hardest hit in the second quarter of 2024 with a net closure rate of 11.
This was followed by the east and the south-west, which both saw the rate at four while Scotland, the north-east and the south-west fared marginally better with a net closure rate of three.
Financial pressures
Number of breweries currently and net change compared to 31 March 2023
UK – 1,748 (down 29)
Scotland – 133 (down three)
East – 187 (down four)
North-east – 248 (down three)
North-west – 189 (down one)
Wales – 96 (no change)
South-west – 203 (down four)
South-east – 331 (down three)
Midlands – 334 (down 11)
Figures from SIBA UK Brewery Tracker Q2 2024 covering 1 April to 30 June 2024
It was at one for the east and north-west while Northern Ireland and Wales maintained their brewery numbers.
According to the trade body, small independent breweries reported struggling against rising costs and legacy Covid debt, even though production volumes are now at pre-Covid levels and cask beer production is in double-digit growth.
SIBA chief executive Andy Slee said: “Independent breweries are reporting good sales growth and strong consumer demand, yet breweries continue to close.
“For most breweries, the challenge is financial pressures from rising costs and market access as well as lingering Covid debt – something SIBA has strongly lobbied the Government for help on.”
More opportunity needed
SIBA highlighted how the price of a pint is at an all-time high but independent brewers were unable to pass on significant price hikes in raw materials, energy and production to their customers, indicating access to market and help with financial pressure the most pressing factors in helping brewery numbers stabilise.
Slee added: “Where independent beers are stocked, they sell well. They just need more opportunity to do so.”
Prior to the general election, the SIBA boss called on the incoming Government to deliver fairness on taxation for the sector.
In a column for The Morning Advertiser, Slee wrote: “Whether you are a pub or brewer, you ay tax at many times the rate of Amazon or Bet365 and frankly, that’s a national disgrace.
“The UK’s economic prosperity will not be restored until that taxation imbalance is tackled head on.”
