On 26 May, the BBC ran a story with the headline “Beer boom goes flat as breweries call last orders”. This was featured on its website and led to a pre-breakfast interview on Radio Sheffield with a local CAMRA member. Its story was based on a mix of Companies House and national CAMRA data and stated:
- in April, the number of UK beer brewing companies fell to 2,320. It peaked at 2,594 in 2022.
- across the UK 320 businesses shut last year, Companies House data shows. Yet only 170 opened, resulting in a net loss of 150.
The story takes no account of the many nuances which are hidden in the figures. For example, Sheffield brewery Grizzly Grains ran successfully for four years from 2020. It closed when the owner and sole employee, Sam Bennett, became head brewer at Little Mesters as it moved to its new premises in Attercliffe. The result was a net loss of one brewery but an increase in both numbers employed and beer production. It’s also worth mentioning that the effect of one closure can vary dramatically. In February, Molson Coors announced the closure of Sharp’s brewery in Cornwall with the loss of 50 jobs.
It would also be interesting to see more depth. Perhaps, only consider breweries which have existed for more than five years? Sheffield, for example, currently has 17 independent working breweries. Of these, 15 have been in operation for more than five years. They are established, have a working business model, and, most importantly, customers. In the last five years, another three breweries have come and gone (BrewSocial, Heist and HQ Brew).
Local independent breweries have many pressures: post-Covid, energy costs, rising price of ingredients, Brexit, however, the main challenge is getting to market and making its beers available for sale. If you visit a big supermarket how many indie beers are on the shelves?
Taxation is another issue. It’s difficult not just for breweries, but for all small independent businesses. However, breweries do seem to have to engage with a perhaps excessive amount of paperwork: perhaps the indie beer companies need a special overseer who will bring things together?
It’s also worth noting in addition to 20 per cent VAT, alcohol is also subject to specific duties. The UK tax on beer is one of the highest in Europe. For example, a 4.5 per cent ABV brew sold at £4 has a beer duty of 13 per cent and VAT of 17 per cent - meaning 30 per cent of your spend is on tax (£1.31). A reduction in alcohol tax would be welcomed by our local independent breweries.
The BBC did note both Bristol and Sheffield have one of the densest brewery scenes in the country, each with more than 10 breweries within a mile of each other. Sheffield is a strong beer city due to local co-operation, collaboration and support. In short, the things that make Sheffield a great city, make it possibly the best beer city in the world.
As co-founder of Triple Point George Brook said in the BBC piece: “One of the reasons why I love this city, and also Bristol, both are so much more accepting of independents than anywhere else I have been or lived. The culture of drinking local beer is one of the things that makes Sheffield great.”
Choosing an independent pint genuinely makes a difference. It supports local businesses, local employment and is also good for the environment. Do you really want to drink Doom Bar which has travelled many miles from Cornwall, when there is a choice of many excellent, locally made beers? The difficulty for the small brewery is getting to market, not the quality of its beer. Consumers deserve the opportunity to choose – local quality or multinational mediocrity.
