Average beer sales have dropped by 82% during the coronavirus outbreak, new figures, released today, show. Many businesses are struggling to survive.
Eight out of ten brewers do not believe the government is doing enough to support them, with more than half (54%) of the UK’s independent breweries being unable to access any government support. Nearly a third (29%) are now considering redundancies.
Despite beer production being part of the food supply chain — meaning brewers are designated key workers — with pubs, bars and restaurants closed the main route to market for independent breweries has been entirely cut off, leading to 65% of breweries stopping production altogether.
The survey of 282 UK breweries by the Society of Independent Brewers (SIBA) reveals the devastating impact of the Covid-19 lockdown measures on one of the UK’s most successful manufacturing industries.
SIBA chief executive, James Calder, said: “Unlike the global beer brands who can supply supermarkets in great volume, small independent breweries sell the majority of their beer through pubs, bars, and restaurants, meaning the lockdown measures have hit them much harder.
SIBA chief executive, James Calder
“While many have launched local delivery services or online shops to try to stay afloat, the increase in online sales is a drop in the ocean compared to the overall decrease their beer sales have seen.
“Pubs, bars, and restaurants have been receiving help from the government, but none of the same schemes apply to our small breweries who saw their sales fall off a cliff almost overnight. They urgently need a package of measures to keep them going, otherwise many won’t be able to re-open.”
The survey shows that 70% of breweries are offering new delivery or take-away services in order to help supply their local communities with quality independent craft beer, with around 61% of those breweries now offering free delivery to local beer lovers.
SIBA are calling on the government to relax licensing laws to allow the one in four breweries who don’t have the relevant licenses in place to deliver beer direct to consumers in a variety of ways.
The trade association says this should come as part of a targeted package of support for breweries and the brewery supply chain to match the level received by pubs, including making the grants and exemptions from business rates offered to pubs applicable to breweries.
In addition, beer duty payments, which are often a brewer’s single biggest cost and which account for 35% of turnover, should be deferred by the government to help weather this storm.
The survey of 282 UK small independent brewers by SIBA was conducted from 9th to 14th April.
