FDBusiness.com

Number of UK Breweries Rises 8% in Just a Year as Popularity of Craft Beer Soars

 Breaking News
  • Arla Foods Acquires Middle East and Africa Kraft Branded Cheese Business From Mondeléz International European dairy co-operative Arla Foods has reached an agreement with US-based international confectionery, food, and beverage company Mondeléz International to acquire its processed cheese business in the Middle East region, which is currently licensed under the Kraft brand. The acquisition also gives Arla full ownership of a state-of-the-art cheese production site in Bahrain, which provides [...]...
  • UK Grocery Market Growth Cools as Christmas Nears Despite retailers and shoppers getting into the festive spirit, the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 2 December 2018, show the sector is now growing at 2.0% – its slowest rate since March 2017. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, comments: “Consumers are benefiting [...]...
  • Cleveland Clinic Studies Reveal Role of Red Meat in Gut Bacteria, Heart Disease Development In concurrent studies, Cleveland Clinic researchers have uncovered new mechanisms that demonstrate why and how regularly eating red meat can increase the risk of heart disease, and the role gut bacteria play in that process. The research, led by Stanley Hazen, M.D., Ph.D., builds upon previous work showing TMAO (trimethylamine N-oxide) – a gut bacteria [...]...
  • The Complete Package at Contract Pack 2019 Packaging Innovations 2019 is set to welcome back Contract Pack for the twelfth-year at Birmingham’s NEC on 27 & 28 February 2019. Supported by the British Contract Manufacturers and Packers Association (BCMPA), the Contract Pack 2019 zone will host 20 BCMPA accredited exhibitors, offering an unrivaled opportunity for brand owners and manufacturers to meet potential [...]...
  • Müller Completes Largest Single Investment in Scottish Dairy Processing in a Decade Müller Milk & Ingredients has completed a £15 million project to substantially upgrade Scotland’s largest fresh milk dairy in Bellshill and secure 265 jobs. The project represents the largest single investment in Scottish dairy processing for more than a decade. It gives Müller’s Bellshill dairy the capacity to process more than 370 million litres of fresh [...]...

Number of UK Breweries Rises 8% in Just a Year as Popularity of Craft Beer Soars

Number of UK Breweries Rises 8% in Just a Year as Popularity of Craft Beer Soars
October 07
14:27 2016

The total number of breweries in the UK has increased 8% in the last year alone, from 1,558 in 2014 to 1,692 in 2015, as the popularity of craft beer continues to soar, according to research by UHY Hacker Young Group, a network of UK chartered accountants. The number of breweries has now risen by 65% in the last five years, from 1,026 in 2010.

Craft beer has increasingly been seen as a luxury item by consumers in recent years. The popularity and highly regarded global reputation of these products has boosted a demand for craft breweries across the UK, creating opportunities for prospective entrepreneurs in the food and drinks industry.

Consumers are more willing to pay premium prices for a luxury product such as craft beer than for a more mainstream brand.

Indeed, the rise of craft beer has driven the success of the UK’s boutique food and drink market. Craft beer, alongside other products such as fine wine and high quality cheese, has made a significant contribution to the profitability of the food and drinks industry.

SABMillerMeantimeDue to the increasing popularity of high quality craft beer, the Society of Independent Brewers (SIBA) has recently launched a new classification, ‘Assured Independent British Craft Brewers’, so that consumers can identify genuine UK craft beer.

It is also thought that the weakness of the pound that occurred as a result of Brexit will benefit the craft beer industry more than their more mainstream competitors, as these products are made locally and unlikely to be affected by any increase in import charges. International breweries however may have to increase their prices to compensate for the extra costs that they may face.

Microbreweries are increasingly launching in the UK as part of a growing trend towards artisan products within the food and drinks industry. Breweries which have recently opened or are set to open in the UK include:

* The team behind The Dockyard, a group of bars in Manchester, is set to open a microbrewery named The Gasworks Brewbar inside their bar on Manchester’s First Street.

* Ten new microbreweries will operate from one location in Bermondsey under the open brewery, Ubrew.

* Bradford Brewery launched in 2015 in Bradford city centre.

Following SAB Miller’s purchase of London’s Meantime Brewing Company in May 2015, other acquisitions of UK microbreweries by multinational brewing companies are likely.

James Simmonds, partner at UHY Hacker Young Group.

James Simmonds, partner at UHY Hacker Young Group.

As a result of acquisitions or investment from larger brewery companies, UK microbreweries may have the opportunity to invest funds into their business, which could lead to international expansion or extending their product lines.

According to UHY Hacker Young Group, the success of UK microbreweries is also demonstrated by the growth of The Camden Town Brewery which, after opening in 2010, was purchased by AB InBev, the multinational brewing company, in December 2015 and is now expanding beyond Camden by opening a new brewery in Enfield.

James Simmonds, partner at UHY Hacker Young Group, comments: “Craft beer is leading the way in the surging popularity of artisan products and has pushed aside other brands in high street bars. Many are now firmly established household names. This increasing popularity has transformed many microbreweries into highly profitable businesses for entrepreneurs looking for a niche position in the food and drinks market.”

He continues: “As a result of their success, microbreweries across the UK have also become attractive acquisition targets for larger breweries. It is likely that larger breweries will continue to show more and more interest in the smaller breweries that are popping up around the UK so they can benefit from the interest in craft beer.”

The number of breweries in the UK jumped 8% in just a year and 65% over five years

craftbreweriesoctober2016

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements