The number of UK breweries becoming insolvent has tripled in the past year, with smaller brewers worst hit, according to data cited by tax and audit firm Mazars.
Using Insolvency Service data, the company said the number of insolvencies rose to 45 in the year to March 31, 2023, up from 15 in the previous year. Paul Maloney, associate director at Mazars, said the insolvencies are largely of smaller craft breweries who have “suffered from an oversaturated market and from rising overheads”.
Maloney said: “Craft breweries have been struggling for some time but rising prices have brought their financial challenges to a head.
“Craft brewers often offer ‘premium’ beers, but consumers are turning to cheaper options. As such, discounted brands produced by large international brewers and supermarket own brands are increasingly the choice for consumers.”
He added that the craft beer market has become “heavily overpopulated” over the last decade.
“The cost-of-living crisis now means many of these brewers are fighting for a place in a shrinking market,” he said. “Some of them will not make it.”