Independent Breweries Capitalise On Local Roots To Win Over Consumers Despite Tough Trading Conditions

Against the backdrop of record pub and brewery closures, the UK’s small and independent breweries have shown how acting nimbly and capitalising on local roots can win over consumers.

As the annual Indie Beer Week continues to celebrate the sector, the Society of Independent Brewers and Associates (SIBA) has today published its in-depth report into the state of independent brewing.

It illustrates how breweries have expanded their local offering and are now selling more beer directly to drinkers. Around half of independent breweries now have a shop (51%) and 46% have a taproom on their brewery sites with a third (33%) selling beer through market stalls and events. To help manage this expansion, breweries say they intend to create over 780 jobs this year and more see investment in developing staff as a top priority.

This is in response to growing consumer interest with the latest SIBA/YouGov survey showing that eight out of 10 beer drinkers, along with 89% of 18-24 year olds, say it’s important to have a range of beers from small breweries on offer alongside Global brands. And in positive momentum for the sector, the number of consumers that ever drink beer has clocked up to 50% in this year’s results, reversing the declines seen in previous years.

The majority of the beers made by independent breweries continues to be packaged into cask (58%) with pale ales, bitters and golden ales dominating the top three beer styles. While only nearly a quarter (27%) of beer consumers drink cask beer, our survey shows the best ways to engage with consumers. Four in ten would try cask beer if they were offered a free sample and 31% would try it if it was made locally. And to demonstrate the importance of advocacy, 43% of drinkers said they would try a new drink if it was recommended by a friend or family member.

Despite this evolving demand, the market remains restricted. While the new report shows that 82% of small breweries can sell some beer to local pubs they report being unable to sell on average to 62% of the pubs in their local area due to the dominance of the larger Global brewers.

The report also shows that the independent sector remains fragile. Significant pressures – such as from the cost of living crisis, government regulation and taxation and overseas uncertainty – are combining and threatening to storm the sector. Almost half (49%) of breweries say that survival is their top priority and nearly a third (32%) expect turnover to fall this year. More than half (53%) of brewers sought no investment last year which saw 137 independent breweries close and one pub a day shutting its doors.

“There is no doubt that trade is tough and events are changing rapidly, but small independent breweries demonstrate what successful local community businesses can achieve if they have the right conditions”, says SIBA Chief Executive Andy Slee.

“Small breweries are nimble and innovative and want to expand and grow. Consumer interest for their products is there, they just can’t always get their beers in front of them. Having their own taproom and shop is part of the solution and it’s great to see that more are doing so. But it’s also important to have the chance for local pubs to put them on the bar and access continues to be too restrictive for most small breweries.”

More information can be found at https://indiebeer.uk/