Local brewers outperform market
Local brewers continue to well outperform the overall beer market, achieving an average increase in turnover of 17% last year.
That's the upbeat assessment of the Local Brewing Industry Report from the Society of Independent Brewers (SIBA), published today.
It found:
• Local brewers achieved a 3.75% increase in volume sales in 2009, while the overall beer market fell 4.2%
• Three-quarters of all local brewers recorded volume growth in 2009
• On average, they achieved a 17% increase in turnover
• The number of pubs sourcing local beers through SIBA's direct delivery scheme (DDS) grew by 12% — "a reflection of local cask ale's unique ability to help pubs weather the recessionary storm".
The report also shows many brewers have been investing in new equipment and marketing and several plan to pub a pub during 2010.
Eight out of 10 are committed to reducing energy usage. More than half plan to reduce packaging and "food miles" and a similar proportion source ingredients locally. And 16% already brew organic beers or plan to do so.
Resilience
SIBA chief executive Julian Grocock said: "Over 60% of our members were founded after 2000, so the current recession is the most severe they have traded through.
"That the vast majority managed a sales uplift last year and are anticipating the same in 2010 speaks volumes about the resilience and resourcefulness of the UK's quality independent brewers."
The Report includes SIBA's pre-election manifesto, which calls for continued backing for tax breaks offered by Progressive Beer Duty (PBD). It calls the beer duty escalator to be cancelled, beer duty frozen, and lower duty rates for lower strength beers.
Grocock said: "The Government's support for PBD is welcomed and has helped the formation and growth of many smaller brewers, whom it claims to support.
"Yet, with its punitive taxation policies, which have meant a 20% rise in beer duty over the last two years, it appears set on destroying them."
• Download: SIBA Local Brewing Industry Report 2010
