UK: 43 breweries become insolvent in the year to February 2025

A total of 43 UK breweries became insolvent in the year to the end of February 2025, according to accountancy group UHY Hacker Young, The Caterer reported on May 27.

Names including Fourpure, Magic Rock Brewery (both brands were subsequently acquired by Keystone Brewing Group), By the Horns, Burton Town Brewery and Wild Weather Ales were amongst those in financial difficulty.

Fourpure and Magic Rock were later acquired by Keystone Brewing Group.

Many of the closures were due to the mounting cost pressures facing small, independent craft beer producers, the report said.

Brian Johnson, partner at UHY Hacker Young, said: “The craft beer boom was one of the most exciting recent trends in food and drink. Unfortunately, it is a sector that attracted too many entrepreneurs who struggled to break even.

“The recent closures suggest the UK’s craft beer market cannot continue to support all the independent producers that have sprung up in the last 15 years.”

Johnson said weak consumer spending meant many breweries would have to adapt to leaner times and small brewers were caught in a “perfect storm” of soaring production costs while household spending remained tight.

Recent increases in the National Minimum Wage and employer National Insurance contributions have also pushed up wage bills for brewers. Margins have been further squeezed by inflation across ingredients, brewing equipment and energy bills.

Johnson said producers who were reliant on local bars and direct sales were particularly vulnerable if their customer base cut back on spending.

He added there was a concern many customers could trade down to buy cheaper beer due to tightening household budget.

Johnson said this trend was making it harder for craft brewers to justify their typically higher price point.

“For smaller brewers who rely on loyal local followings, even a slight dip in demand can tip them over the edge. With so many brewers competing for attention, it’s increasingly hard to survive."

Johnson said many small brewers were struggling to scale up and only the bigger craft breweries could access national pub chains, meaning many breweries could not achieve the economies of scale needed to break even.