In a survey of its members, released this week, the Society of Independent Brewers & Associates found that 43% stated that “survival” is their business priority for this year. The figure compares favourably to the 63% response rate 12 months ago.
The findings are presented in the trade association’s annual beer report, based on reponses from one third of its 750 members as well as a survey of around 2,000 consumers in the country.
“Brewers have made the adjustments necessary to get through this challenging period and are able to focus now on maintaining their business,” SIBA said in the report. “However, perhaps not a big surprise, we can also see that one of the things that brewers have had to rein in during these tough times is investment in growth, with only 23% saying expansion of their brewery is a focus this year compared to almost 30% last year.
“Focus instead this year has moved to beer quality and investment in team members, which is very positive in a climate where consumers are increasingly seeking out premium products and excellent service standards.”
Elsewhere in the document, there was more good news on the production side, with average brewing volumes finally returning to pre-pandemic levels: Average production volumes last year rose by 14% on 2022, hitting 4,175 hectolitres, just above 2019's 4,132hl.
British Beer & Pub Association figures cited by SIBA indicated the continuing decline of pubs in the UK on-premise channel, with the net closure rate accelerating last year. “. As the most important route to market SIBA brewers have, local pubs have been hit head on by energy price hikes, falling consumer spend, rising wages and price hikes, meaning this core market for craft beer is under extreme pressure,” SIBA said.
Looking forward, a major challenge exists in the form of younger LDA consumers’ ambivalence to alcohol, according to a survey commissioned for the latest report. While 27% of 18-to-24-year-olds said they never drink alcohol, only 8% of SIBA’s brewery members said they produce an alcohol-free beer. “No-alcohol beer is notoriously difficult to get right,” the organisation said. “Many SIBA breweries may be biding their time until the technology and methodology is refined to make production more straightforward.”
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