Number of breweries and distilleries reaches new high

Research by the accountancy group UHY Hacker Young found there were 1,994 breweries in the UK at the end of 2016, up 18 percent from the 1,692 recorded at the end of 2015. This is the highest number since the 1930s.

The researchers suggested the craze for craft ale has boosted the number of microbreweries – the bulk of brewery start-ups – which have, in turn, benefited from a tax break in 2002, allowing brewers producing less than 5,000 hl beer to pay 50 percent less beer duty than their larger rivals.

“The craft beer boom has reversed around 70 years of consolidation in the brewing industry,” said James Simmonds, partner at UHY Hacker Young.

“There is plenty of growth still to come. However, the majors are beginning to make a fightback by acquiring craft brewers and launching their own artisan style brands. The craft brewers can’t afford to rest on their laurels. They will need to work hard to get their product into that limited shelf space and bar space.”

Meanwhile, a September 2017 report from UHY Hacker Young noted that another UK drinks category was seeing rapid growth: distilled spirits, specifically gin, which unlike whisky can be made very quickly. The number of distilleries has grown 107 percent in just five years to 131 in 2016. More than 40 new distilleries opened in the last year alone.

Number of UK breweries reaches new high