Beer Sales Drop 82% in the UK As Brewers Struggle To Survive

Many craft breweries in the United Kingdom are in survival mode, having seen their beer sales decimated by the coronavirus outbreak.

There’s no sugar-coating the results of a recent survey by the Society of Independent Brewers (SIBA), a UK trade organization that advocates for independent brewers…Just as in the US, many breweries are life-support having seen their beer sales plummet in the face of a government-imposed national lockdown.

This from Beer Today…

“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 SIBA survey of 282 UK breweries paints an ugly picture of the devastating impact of the Covid-19 lockdown measures on one of the country’s most successful small businesses… Businesses that have seen beer sales fall on average by 82% April 9th through the 14^th.

This from SIBA Chief Executive, James Calder….

“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.”

“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 found that 70% of breweries are offering new delivery or take-away services to help compensate for lost pub, bar, and restaurants beer sales. And the trade organization is calling on the government to relax licensing laws to allow the one in four breweries, who aren’t currently appropriately licensed, to deliver beer direct to consumers.

SIBA says that this initiative should be part of a targeted package, which would also include deferred beer taxation, often a brewer’s single biggest cost…

According to SIBA’s survey, “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.

And the hits keep on coming…

50 MILLION PINTS OF BEER WASTED IN UK PUBS IF PANDEMIC LOCKDOWN CONTINUES