Tough period for pubs has been boom time for breweries
THE number of breweries in the UK has increased during the pandemic, despite a tough year for businesses.
The latest figures from the Office for National Statistics (ONS) reveal that there were around 1,545 local units brewing beer nationally as of March 2021.
That was up from 1,420 breweries operating across the country in March 2020, reversing a recent trend that saw the number dip and bringing the total back up to a record high.
The number had been rising year on year for the last decade, but had fallen for the first time in 2020, prior to the pandemic.
The figures go back to 2010, when there were just 570 breweries in the UK, meaning the number has nearly tripled.
The vast majority of brewers are what the ONS refer to as micro businesses - those with fewer than 10 employees. The number of micro businesses remained at 1,180 in March 2021, as did the number of medium and large brewers, but the number of small brewers (with 10-49 employees) increased significantly from 195 to 315.
The long-term boom in smaller businesses is partly down to a surge in the popularity of craft beer, with increasing demand for more choice and specialist options such as vegan or gluten-free beer.
The craft beer revolution was also fuelled by something called “small brewers’ relief” (SBR) - a tax break introduced in 2002 by Gordon Brown.
However, the more recent increase in the number of breweries may have been impacted by the pandemic.
During lockdowns when pubs and bars were closed, many people turned to ordering online to try craft beers at home - with customers particularly keen to support local, independent businesses.
Meanwhile, some new brewers may have decided to turn their passion for beer into a business after being made redundant or put on furlough.
Nik Antona, national chairman of Camra (Campaign for Real Ale), said: “After the struggles of the past two years, it is good to see the industry continue to demonstrate resilience against all odds.
“The pandemic has had a massive impact on brewers who have had to be nimble and innovative to meet the new challenges of lockdowns, restrictions and reduced consumer confidence – from offering takeaway services to expanding online deliveries.
“However, these figures do not mean we can rest on our laurels – the industry is still vulnerable.
“There are still ongoing issues around the cost of goods, lack of business rate relief and important details that need deciding as part of the Alcohol Duty Review.
“That is why Camra continues to call on the Government to lower the threshold for the new draught duty rate so that it applies to containers 20L and up, so as not to exclude small and independent brewers from the benefits of a lower tax on beer served on tap.”
Wales has seen the biggest increase in the last year out of all the regions and countries in the UK, with the number of breweries more than doubling from 75 in 2020 to 190 in 2021 - driven in particular by an explosion of brewers in Cardiff.
There has also been an increase in the North West, from 135 to 145 breweries, and in the South West, from 165 to 170.
The figure has remained the same in the South East (190), Yorkshire and the Humber (155), London (140) and Scotland (130), and has dipped in the West Midlands from 120 to 115, the East of England from 120 to 115, and the East Midlands from 115 to 110.