Craft beer is reassuringly expensive… in London

When did we last hear of beer being reassuringly expensive? It was actually Stella Artois’ advertising slogan in the UK from 1982 until 2007. During 2007, the “reassuringly expensive” slogan was dropped by AB-InBev, possibly as a reaction to the lager’s perceived connection with lager louts and binge-drinking, which gave it the nickname "wife beater".

In the UK, craft beer may not market itself as expensive but it is perceived as such because it’s driving its status as a luxury good. That’s the major finding of a report by the UK accountancy firm UHY Hacker Young, released on 29 March 2016.

In other words, craft beer is being regarded as something akin to champagne, which has helped boost its demand and has seen the number of new brewery openings in London jump to 36 in 2015. This means the UK capital today has over 100 microbreweries.

James Simmonds, of UHY Hacker Young, says that craft beer has cemented its popularity in London beyond "hipster areas” of Shoreditch and Hackney. “It’s not surprising that London has such a large amount of new microbreweries, with the high numbers of young professionals working within the City. Because craft beer is viewed as a luxury good, customers are prepared to pay a higher price in comparison to other more commercially branded beers. [Microbreweries] have become household names and this in turn has only spurred more entrepreneurs to try their hand at brewing.”

Elsewhere in England, the number of new breweries opening actually decreased. 249 opened in 2015, compared with 278 in 2014. However, Wales saw a jump of 35 percent to 17 new breweries.

At present there are over 1,700 microbreweries in the UK.

New breweries opening in London 2011 -2015