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The South East has seen the highest number of breweries closing their doors so far this year, according to the latest figures.
The statistics, released by the Society of Independent Brewers (SIBA), reveal overall numbers across the UK - balancing out those closing and opening - to be down 38 since the dawn of the year.
And 10 of those have been in our region. The next quarter’s figures will also highlight the closure of the award-winning Cellar Head Brewing Company near Goudhurst which went into administration last month.
After seven years, its owners said the business was “unviable” due to increased production costs and the current financial climate.
The SIBA UK Brewery Tracker shows the number of active brewers, nationwide, now stands at 1,777.
The South East was the worst hit in the first quarter with a net closure rate of -10, followed by the Midlands with -7 and Scotland with -6.
Andy Slee, SIBA chief executive, said: “Seeing a 2% drop in the number of breweries in the UK is a small shift, but not the start to the year the industry had hoped for and as we look ahead to what promises to be a busy summer for pubs I’m hopeful we’ll see the dial swing into the positive as we did in Q2 2023.
“There is no single reason breweries in the UK close, but for most it is a combination of rising costs and slowing sales caused by the cost-of-living crisis, which when compounded by the repayment of substantial Covid loan debts makes many businesses struggle to turn a sustainable profit.
“And whilst the price of a pint on the bar is already high, this simply isn’t passed on to small brewers – with the price of a pint largely eaten up by one of the highest levels of taxation in Europe, and huge increases in raw materials and production costs for brewers.”