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11 Jun, 2023 07:02

UK breweries going bust – report

The number of insolvencies among craft beer producers has tripled in the past year, research shows
UK breweries going bust – report

Britain’s brewer companies took a hit last year as the cost-of-living crisis ravaged the nation’s hospitality sector, accounting firm Mazars has said.

According to its analysis of the most recent official Insolvency Service statistics, 45 breweries went bankrupt in the 12 months leading up to March 31, compared with 15 in the previous year.

The report indicated that smaller craft beer manufacturers were the most at risk, as inflation-hit consumers have been turning to cheaper options.

The ongoing cost-of-living crisis has added pressure to the market, which has already been impacted by “a major shakeout,” Mazars explained.

“Craft breweries have been struggling for some time but rising prices have brought their financial challenges to a head,” stated Paul Maloney, an associate director at Mazars. “The craft beer market became heavily overpopulated over the last decade. The cost-of-living crisis now means many of these brewers are fighting for a place in a shrinking market. Some of them will not make it,” he cautioned.

Pub and bar bankruptcies across the UK have been at nearly the highest level in a decade, with more than 500 businesses folding last year, according to accountancy firm UHY Hacker Young. The sector has been struggling from a combination of soaring energy prices and high inflation.

In September, the British government introduced a so-called Energy Bill Relief Scheme, providing £18 billion (over $22 billion) to businesses to help with energy costs. The scheme came to an end in March, while the funding has been reduced to just £5.5 billion ($6.8 billion) under a new support package.

For more stories on economy & finance visit RT's business section

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