The Ellon-based business calculated the UK brewing and pub sector has been hit by more than £1bn in additional costs over the past year, driven by soaring energy bills, rising labour costs, tax hikes and regulatory changes.
Inflationary pressures on production and raw materials further increased operating costs, BrewDog added, though it said the biggest impact had come from increases to the National Living Wage and Employer National Insurance contributions.
Critical moment
BrewDog calculated to recoup these costs, the sector as a whole would have to sell an extra 950,000 pints every hour.
It said next week’s Budget was a “critical moment” for the sector, calling for Chancellor Rachel Reeves to deliver meaningful support, including business rates reformation, relief on beer duty, VAT reductions and a review of the cumulative cost burden on pubs and breweries.
BrewDog CEO James Taylor said: “In the past year alone, energy and utilities, wages, National Insurance contributions, raw materials, packaging, and regulatory costs have all moved in the wrong direction.
“We estimate that, taken together, these cost increases have added more than £1bn to the sector’s collective bill.
Tough trading environment
“The tax rises that came into effect in April, notably the increase in duty on non-draught beer and the scaling back of business rates relief for pubs, have made a tough trading environment even tougher.
“If the Chancellor chooses to clobber the sector again in this Budget, many independent brewers and pub operators will simply not be able to withstand the pressure.
“Britain’s brewing heritage is something to be proud of. With the right policy environment, this sector can be a powerhouse for jobs, growth, and creativity.”
