Covid and the Aftermath

Then Covid hit, and the closures began.

You might think the pandemic would have thinned the herd and made things easier for the survivors. It didn't. The number of breweries closing each week has been fairly constant since Covid, and the trading environment for those that remain has only got harder. The market corrected, but the headwinds kept coming.

Inflation hammered the industry from every direction. Utility costs went through the roof — and brewing is energy-intensive. Malt, hops, yeast, cans, labels — all up. The cost of producing a pint of beer rose sharply, but breweries couldn't pass all of those costs on without losing customers.

The cost of living crisis hit the other side of the equation. People simply can't afford to go out as much. A night at the pub became a luxury, not a regular occurrence. Off-trade sales held up better, but supermarkets squeeze you on margins until there's barely anything left.

Health advice added another pressure. As public awareness grew around the health risks of alcohol — and as official guidance shifted toward messaging that there is no safe level of drinking — the overall trend in alcohol consumption continued downward. Younger generations in particular are drinking less. The customer base is literally shrinking.