The figure more than tripled in 2022 as rising production costs and reduced consumer spending took their toll, according to data obtained by Price Bailey accountants.
According to data obtained from the Insolvency Service under the Freedom of Information Act, a record 38 breweries went bankrupt in 2022, up from nine in 2021, making 2022 the highest annual total on record.
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Price Bailey said independent brewers are being pressured by a convergence of factors, including rising material, labor and energy costs combined with falling sales as consumers switch to cheaper multinational brands.
Craft breweries produce beer in small batches and are therefore less able to benefit from the economies of scale of larger brewers, leaving them disproportionately exposed to demand and supply headwinds in the market. economy.
Stirling-based Fallen Brewing, The Wild Beer Co in Somerset, and Manchester-based Beatnikz Republic are some of the independent brewers that closed in 2022.
Matt Howard, Price Bailey’s head of insolvency and recovery, said: “The growth of beer start-ups has slowed in recent years and we are now beginning to see a significant amount of business flops as the market becomes increasingly saturated and brewers face stronger economic headwinds.
“Rapid inflation is leaving consumers with less money to spend on premium products. This is reflected in the shelf space that retailers allocate to craft beers. As consumers shift to cheaper global brands, supermarkets are shrinking space for craft beers, leaving some products with very little market exposure.”
He added: “While many multinational brewers have seen their profits rise over the past year, smaller independent brewers generally operate on much tighter margins with minimal exposure to foreign markets. They produce smaller batches of beer and cannot take advantage of economies of scale to offset inflationary pressures.”
Price Bailey noted that trading conditions for small brewers are likely to remain difficult as “prices for many of the basic ingredients used in brewing remain stubbornly high,” adding: “The Russian invasion of Ukraine and the summer heatwave in Europe have exacerbated shortages of grains, including wheat and barley, causing prices to soar.”
One of Scotland’s leading conservation charities has announced the purchase of a 45-acre site in the Highlands with a view to creating a major community and visitor centre.
The John Muir Trust said the acquisition of the site, on the shoreline of Loch a’ Chàirn Bhàin, signals its ambition to work with local communities and farmers to boost the area’s fragile economy, increase the resident population and strengthen the link between people. , landscape and nature in this beautiful part of the Highlands.
A rare toy robot that sat in a loft for decades and was destined for a charity shop has sold for £8,400 at auction.
The Radicon robot appeared at McTear’s Antiques and Interiors auction in Glasgow on April 7 and was expected to fetch £10,000.
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