Closure rates of independent breweries slows again
According to the Society of Independent Brewers & Associates (SIBA), the UK had a net closure rate of 27 breweries in the third quarter of this year leading up towards the end of September, in comparison to a 29 during the second quarter of the year while the first quarter saw a net closure rate of 38 breweries.
This marks the third consecutive quarter showing a slow down in the rate of closures and there have been certain success stories too.
The south-west saw a notable increase of two breweries, which was the highest of all regions within the UK. Wales followed this figure with an single-site increase.
The SIBA UK Brewery Tracker considers all brewery openings and closures in order to provide an accurate picture of the amount of active brewing businesses. The latest figures from the tracker show the total number of active UK breweries now stand at 1,721 compared to 1,748 towards the end of June.
Some regions in growth
SIBA head of comms Neil Walker stated: “It’s positive to see some regions of the UK now in growth and an overall UK-wide closure rate, which appears to be slowing.
“Demand for beer from independent breweries has never been higher from consumers but access to market and profitability are still big challenges for small brewers all across the UK.”
Walker explained both high taxation and rising raw ingredient costs are factors that are constantly testing “fine margins” a lot of independent breweries are working with at the moment.
He continued: “In short, small breweries need your support so next time you’re in the pub or supermarket, opt for an independent beer from a local brewery and help to keep local breweries and pubs alive.”
SIBA’s Beerflex system supplies guest ales into tied pubs across the UK. Year-upon-year analysis of the system shows an increased demand for independent beer with throughput per beer tap averaging out at a 13% increase. Large amounts of cask beer brewed by independent brewers are located less than 40 miles from the pubs where they are served.
“The challenge isn’t consumer demand. The challenge is getting small independent breweries access to pubs that are dominated by global brewers.” Walker added.
Lower closure rates
According to SIBA, breweries in Northern Ireland struggled in Q3 the most with a large net closure rate of six, taking the country’s total number of active breweries from 29 to 23.
Elsewhere throughout the UK, the north-east of England experienced a net closure rate of six, dropping from 248 breweries to 242. In the south-east, the total number of breweries went from 331 down to 325.
Scotland and the east of England both lost four breweries. Scotland now has 129 breweries compared to 133 at the end of June, while the latter now has 183, down from 187.
The Midlands lost three breweries, going from 332 to 329 while the north-west fell by one site from 189 to 188.
The south-west had the biggest increase in the regions, rising to 205 from 203 while Wales rose to 97 breweries from 96.
