Local brewers continue to buck the trend

Locally-brewed craft beers are continuing to buck the trend as a new major industry report reveals volumes for independent brewers grew by nearly nine per cent in 2010.

The Local Brewing Industry Report 2011, published today by the Society of Independent Brewers (SIBA), surveyed around half of all SIBA's 463 members - and found volumes grew by 8.8 per cent.

This was compared to an overall decline of 3.9 per cent in the UK beer market last year.

The report also notes the diversity of beers also being produced by SIBA members. Cask ale maintained its production share of around 80 per cent, but keg beers grew as smaller brewers looked to create a broader 'craft beer' market.

SIBA members are producing around 2,500 cask beer brands a year, 3,500 seasonal ales and 1,750 bottled brands, compared to just 300 in 1976.

But the report also warns of the threat to the "punitive" duty charged on beer in the on-trade.

Julian Grocock, SIBA chief executive, said: "Local brewers are just the kind of business this government has been saying it wants to see succeed: they create jobs for local people, contribute to the local and wider British economy by using home-grown ingredients such as barley, and have impeccable environmental credentials.

"It is time for the government to become more 'joined up' in its approach to taxation across the brewing and pubs industries."

He also called for a lower VAT rate across the hospitality sector.

Meanwhile, the report is unambiguous about the role played by progressive beer duty (PBD) in the sector's success. Since its introduction in 2002, the number of SIBA brewers has doubled, their sales have doubled and the number of people employed has doubled.

Grocock added: "The thriving industry we have today was built on brewers' passion for beer and entrepreneurial flair, combined with PBD, which helps smaller brewers to compete with bigger players in a competitive market.

"The removal of PBD would destroy the industry, leading not only to brewery closures, but more pub closures and the loss of jobs."

In the report, 60 per cent of respondents said they believed their brewery would fail if PBD was withdrawn.