SIBA predicts Brexit will benefit pubs

The body has stated that when periods of uncertainty have happened in the past, it is local beer industry that benefits.

Managing director of SIBA Mike Benner said: “There is plenty of doom and gloom following Brexit and while it may be the case that many consumers will look for better deals on household spending, generally for beer, there are some important lessons to be had from recent history.

“In the 2008-09 recession, we saw many consumers applying ‘quality over quantity’, choosing premium local ales over mainstream beers. We also saw a strong ‘community-comfort’ effect whereby, in times of uncertainty, people tend to associate themselves more with their own local communities.”

Uncertainty

Benner explained consumer trends drove the increasing growth of local craft beer and SIBA expects the trend to continue during the upcoming months of uncertainty.

“These effects could be positive for a British craft-brewed beer in both the on and off-trade.”

SIBA is also predicting a weaker pound will benefit pubs as more UK residents will go on ‘staycations’ rather than holiday abroad and attract tourists from overseas.

Benner said: “We know that the great British pub and our unique British beer are an essential part of the tourism mix and we may see some positive effects as staycations rise and tourism authorities work to boost the number of overseas visitors.

“It is essential that pubs get their range right in light of this, ensuring that quality local beers from craft breweries feature heavily in their offer.”

Weaker currency

SIBA explained around 17% of its members exported their beers last year and predicts this will rise in response to the weaker pound.

Benner explained: “Many SIBA members are understandingly anxious over the uncertainty of trade deals following Brexit but will also look to maximise the opportunity that arises from the growing interest in craft beer around the world. British beer is unique in this booming global marketplace and craft brewers will see opportunities arising from this.”

SIBA will be attending CAMRA’s Great British Beer Festival​ next week and will be serving at its Cask Champions bar.