UK beer boom goes flat as breweries call last orders

UK beer boom goes flat as breweries call last orders

Around three decades ago, walking through the streets of Burton-upon-Trent, the aroma of beer brewing was an everyday sensory experience for Al Wall. Today, those distinctive scents have nearly vanished. Wall, who serves as the head brewer at the town’s largest and oldest independent brewery, carries on a legacy from a place once famed for producing a quarter of British beer, with over 30 breweries operating during its peak period.

The current reality, however, paints a much bleaker picture. The brewing industry in Burton has drastically diminished, a trend mirrored across the UK. Recent data from Companies House reveals that last year saw 320 brewing businesses close, while only 170 new ones opened, marking a net loss of 150 companies. This decline has not abated; as of April this year, the total number of beer brewing companies dropped to 2,320 from a high of 2,594 in 2022. Tim Webb of the Campaign for Real Ale (CAMRA) attributes part of this contraction to large brewery firms dominating the market, notably through their control of pub draught lines, which restricts smaller brewers’ access.

The challenges faced by small breweries extend beyond market access. Price undercutting by major brands limits supermarket sales opportunities. Additionally, lingering effects of the Covid-19 pandemic and shifts in consumer habits have contributed to the downturn. Notably, the beer business landscape was much more vibrant less than ten years ago, with 317 breweries incorporated in 2017—more than doubling last year’s figures. England, while still home to the vast majority of the UK’s breweries, now has fewer than 2,000 active beer businesses for the first time since 2018, with 95 facing administration, insolvency, or liquidation.

Independent breweries are working on adaptation strategies to remain viable. James Clarke, who runs Oxfordshire’s Hook Norton Brewery—the region’s oldest dating back to 1849 and operated by his family for five generations—has witnessed significant changes in consumption patterns over his 30-plus years of brewing. He remarked, “Back in the early nineties, we brewed three beers, a mild, a bitter and Old Hooky,” and noted that beer consumption in the UK has roughly halved since then. Though they now produce roughly half the volume of beer compared to 15 years ago, Hook Norton offers a broader variety of styles, aligning with a “small renaissance in the traditional styles of beer.” CAMRA’s Webb adds that while big lager brands are declining, heritage beers, craft beers, and innovative new styles continue to perform well.

Diversification efforts are crucial to survival in this challenging climate. Hook Norton was an early adopter of features like a visitor centre and a microbrewery on site. Andy Slee from the Society of Independent Brewers stressed that many brewers are opening taprooms to offer beer directly to customers. “In order to survive, you just can’t stay doing what you were doing before,” he said, highlighting that despite a steady decline in the overall beer market, demand for independent beers remains relatively robust. However, high taxation on draught beer is a significant burden, and Siba advocates for tax relief in this area, emphasizing the important social and economic roles breweries play in their communities.

Some regions have fared better than others, with London notably avoiding a net loss in brewery companies last year. In contrast, the West Midlands, historically a brewing hub, saw 21 businesses close and only nine open, resulting in a net loss of 12. In Burton itself, Al Wall and Emma Cole, manager of Burton Bridge and Heritage Brewing Company, remain dedicated to safeguarding the town’s brewing heritage and independence. Cole shared a message of optimism: “People see us carrying on and it gives hope that beer isn’t going to die in Burton.” However, rising operational costs—from business rates to soaring energy prices—continue to squeeze margins, while consumers resist

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