UK: UK brewers see dramatic decline in both sales and margins in 2024

UK brewers have seen a dramatic decline in both their sales and margins, reflecting the challenges facing independents in the industry, Beer Today reported on April 5.

New figures show that average sales revenue fell by nearly a quarter between 2023 and 2024, from £608,203 to £459,222.

The figures were published by inventory management software provider Unleashed as part of its report on the performance of the UK’s food and drinks industry.

Brewers also generated an average of £1.14 for every pound spent on inventory last year, compared to £2.23 in 2023 — a drop of nearly 50%.

Unleashed analysed data from suppliers in seven grocery categories, and found that average sales across all of them jumped almost £2.1m in 2024. This represented a 17% uplift on the previous year, driven by a spike in sales in Q3. Drinks companies recorded impressive results, with average sales up 76%, from £708,212 to £1.246m.

However, the research also suggests that manufacturers, wholesalers, and retailers are still feeling the squeeze on margins, even after the high inflation of 2022/23 subsided. They generated an average of £1.67 for every pound spent on inventory last year, compared to £2.61 in 2023.

Around 100 independent breweries folded in 2024, according to the Society of Independent Brewers (SIBA) — the result of aggressive competition from big brewers, rising raw materials costs, consumer price sensitivity, and razor-thin margins.