A surge in operational costs has forced 43 UK breweries into insolvency over the past year, according to research by national accountancy group UHY Hacker Young.
The closures include a number of well-known names in the craft beer sector such as Fourpure, By The Horns, Magic Rock Brewery, Burton Town Brewery, and Wild Weather Ales.
UHY Hacker Young attributed the wave of insolvencies to rising financial burdens on small, independent brewers. These include increases in the national minimum wage, higher employer National Insurance contributions, and inflationary pressures affecting ingredients, brewing equipment, and energy costs.
Brian Johnson, a partner at UHY Hacker Young, described the situation as a “perfect storm,” noting that while production costs have risen sharply, consumer spending remains subdued, putting significant strain on smaller brewers’ financial viability.
The findings highlight the vulnerability of independent producers in a challenging economic climate, as many face narrowing margins and reduced demand.
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