In Burton-upon-Trent, Al Wall, head brewer at the oldest independent brewery in a town that once produced a quarter of British beer, reflects on the stark changes in the brewing industry over the years. While Burton was once home to over 30 breweries, it now counts just eight, a trend echoed nationwide as 320 breweries closed in the UK last year, leaving a net loss of 150, according to Companies House data.

The beer industry is currently witnessing an alarming decline, with estimates suggesting that two pubs are closing every day. The number of UK breweries dropped to 2,320 by April 2023, a significant reduction from the peak of 2,594 in 2022. Tim Webb from the Campaign for Real Ale (CAMRA) highlighted the struggles faced by smaller breweries, primarily due to the monopolization of market access by large brewery companies who often own the draught lines in pubs. Additionally, price undercutting by larger brands limits smaller breweries’ chances of selling in supermarkets.

Consumer habits have shifted dramatically since the beer boom of the late 2010s, when 317 breweries were incorporated in just one year. Currently, less than 2,000 breweries remain in England, the lowest count since 2018; 95 of these are facing administration or liquidation.

James Clarke from the Hook Norton Brewery notes that consumer patterns have transformed, leading to a decrease in overall beer consumption. In contrast, the brewery has seen a renaissance in traditional beer styles, despite brewing only half the volume it did 15 years ago. This shift is echoed in the marketplace, where heritage and craft beers are performing well, while the demand for standard lagers continues to decline.

To cope with the changing landscape, many breweries are diversifying their offerings. Hook Norton has adopted strategies like establishing a visitor center and a microbrewery within its facility. Similarly, the Society of Independent Brewers (Siba) encourages members to open taprooms to sell directly to consumers in order to survive.

However, the brewing industry faces immense financial pressures, with high taxation levels crippling many businesses. Siba has called for tax reductions on draught beer served in pubs, citing the vital role that local breweries play in their communities.

Despite the challenges, some regions, like London, have not experienced a net loss of breweries. In the West Midlands, the historical heart of beer brewing, there have been 12 more dissolutions than start-ups recently.

In Burton, Wall and Emma Cole from the Burton Bridge and Heritage Brewing Company aim to uphold the town’s brewing heritage. They hope their efforts will inspire optimism and signify that the brewing spirit in Burton will not fade away. However, the increasing operational costs pose a major threat, with breweries struggling to maintain pricing despite rising expenses.

Despite the decline in many areas, clusters of independent breweries continue to thrive. Sheffield and Bristol, for instance, boast vibrant scenes with multiple breweries within close proximity. The co-founder of Triple Point Brewery in Sheffield, George Brook, acknowledges the challenges but also emphasizes the strong community support for independent beer culture.

Governmental measures recently reviewed could improve the brewing landscape by addressing barriers to small breweries in accessing pubs. The launch of a £4.3 billion business rates support package indicates potential future support for these vital community establishments.