Brewery building in Sussex

Following the UK’s decision to leave the EU, Britain’s top brewers have warned that the weak pound is putting the craft beer revolution at risk. With no clear Brexit strategy in place right now, the dark cloud continues to linger over future trade agreements.

With around 200 new breweries a year adding to the choice for drinkers, the country’s brewing industry has certainly been enjoying a fine renaissance. However, for small-scale brewing, it is not so “plain-sailing” as they start to feel the effects of Brexit, particularly with the soaring prices of imported ingredients and equipment.

Fabio Israel, head brewer at Bedlam Brewery reiterates what many smaller breweries are fearing now, by stating that it is harder for firms such as his to grow because of Brexit. He highlights the greater costs involved when purchasing malt from Germany, yeast from France and hops from the US and the Czech Republic as prime examples.

What this means as well is that beer companies are essentially facing a trade-off between risking their own survival by absorbing cost increases or asking customers to fork out more. The biggest challenge for smaller breweries is that increasing costs is more of a risky game to play compared to established independent brewers who already have a loyal customer base.

How brewers can benefit from Brexit

Approximately 18% of the UK’s beer market is imported, with most leading brands owned by international brewers who have production facilities in both the UK and abroad. Certainly, in terms of the UK craft beer industry, Brexit could have a positive impact on the UK, especially with domestic competition likely to ease with foreign competitors being affected by the devaluation of the British pound. Additionally, in relation to exports, British craft brewers would also benefit from the British pound’s devaluation.

Despite the difficult market conditions, if you or one of your clients are the owner of a brewery, it is important to realise that there is also an opportunity to benefit from the weakness of the British pound and make the most of it by ensuring that your business is in a position to do so. By seeking the right advice promptly, you should be able to remove any uncertainty shrouding your business, and position the business in a way that will promote a long-term plan, despite the uncertainty of Brexit.

At PCR, we can assist by:

  • Proposing funding options you may not previously have considered
  • Managing cash-flow in order to ease pressure
  • Assisting with financial forecasting and restructuring
  • Analysing the company structure and its viability

OFFER

At PCR we offer a free initial consultation and company health check. The health check will provide answers to SMEs and their owners as to the ability to continue to trade, their viability and available options.

Accessing our offer

Simply telephone your nearest PCR office. Our telephone numbers and advisory team members can be found on the website. You can also access and complete a contact form. Please quote BREWERY17 in your correspondence.

Once we are contacted, we will discuss your business with you in more detail and if appropriate arrange for one of our experienced qualified advisors to visit on a day that is convenient to you.

Our promise

Please note this service is free and confidential with no hidden costs or obligations.


Contact Information

Middlesex Office: St. Martin’s House, The Runway, South Ruislip, Middlesex, HA4 6SE
0208 841 5252

Bristol Office: 77A Alma Road, Clifton, Bristol, BS8 2DP
0117 239 0343

Kent Office: Unit 39 The Joiners Shop, Chatham Historic Dockyard, Chatham, Kent, ME4 4TZ
01634 816 066

London Office: 1-7 Harley Street, London, W1G 9QD
0207 291 4465

Milton Keynes Office: 2-14 Margaret Powell House, Midsummer Boulevard, Milton Keynes, MK9 3BN
01908 309 950

Newcastle Office: Suite 108, Collingwood Buildings, 38 Collingwood Street, Newcastle upon Tyne, NE1 1JF
0191 229 9656

Sussex Office: 50 Ham Way, Worthing, West Sussex, BN11 2QH
01903 366 020

Ask for your free health check using our priority contact form ››

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