The number of breweries going bankrupt has tripled in the past year as drinkers turn to mass-produced, lower-priced brands over high-end craft drinks
The number of breweries going out of business has tripled in the past year as drinkers turn to mass-produced, cheaper brands over high-end craft drinks.
In the year to the end of March there were 45 insolvencies, compared to 15 the year before, according to figures from accountant Mazars.
Businesses are being hit by rising costs and stiff competition with the number of breweries now at more than 2,000, as well as drinkers put off by cost-of-living pressures.
Fierce competition: there were 45 insolvencies in the year to the end of March, compared to 15 the year before
Paul Maloney, associate director at Mazars, said: ‘Craft brewers often offer ‘premium’ beers, but consumers are turning to cheaper options.
‘Discounted brands from major international brewers and private labels from supermarkets are increasingly becoming the consumer’s choice.
‘The crisis of the cost of living now means a lot of this [craft] brewers fight for a place in a shrinking market. Some don’t make it.’
Tyne Bank Brewery and Boxcar Brewery are among those that went into administration in the past year.