Leon Grandy Chartered Banker’s Post

The recent collapse of multiple breweries is a sad day for craft beer lovers like myself. The Australian craft beer industry was booming just a few years ago, but has been hit hard by the economic downturn, rising excise taxes, and overhead costs. These factors have made it difficult for small breweries to compete with large companies that can produce beer more cheaply. Consumers are also cutting back on spending, and some are choosing cheaper generic brands. Even though I love craft beer, there's no denying the economic realities that these breweries are facing. I hope that some of these businesses can find a way to weather the storm, but it's going to be tough. #craftbeer #australianbusiness #economics #beerlover https://lnkd.in/gDTG5iPP

"We are less than 7 per cent of market share, but we employ 51 per cent of the industry," she said. "So when our breweries close, we lose jobs...” Excellent article here about the struggles our much loved craft breweries face in the Australian market. We love having these awesome hidden spots serving world class artisan product - but if we want to keep them, we need to: - level the playing field in terms of taxation and the ATO to be a bit more broad minded (as tax payers we should demand this. The article outlines how one decision cost is taxpayers over $1M) - call out the craftwashing by the supermarkets and their alcohol businesses - most of all - keep visiting local breweries - check Aleblazer.com for a list of great breweries where members get their first beer free. With that offer, the “cost of living” argument is out the window. cc: Justin Jamieson https://lnkd.in/gZWXactH

Support your BC local breweries if you want them around. "The cost of operating a brewery has skyrocketed, but our customer base has not. There are more than 230 of us in BC, competing for a finite amount of liquor store shelves and tap lines. The prediction is that over 20 per cent of us will go under before the end of 2025... Market saturation and customers cutting down on alcohol are reasons that get thrown around a lot for the current state of the industry—and while these definitely play a factor, the big thing that’s likely going to get many breweries out there is the sheer cost to own one." https://lnkd.in/g8iFZcwb Jorden Foss Steel & Oak Brewing Co. #beer #beerindustry #brewery #bcbreweries

Some interesting reading courtesy of SIBA, The Society of Independent Brewers, which landed in the last week. Ultimately looking at a net loss of 9 breweries in Q3 this year, or circa -0.5% based on the end of Q2. Really don't know how to feel about that - the operating environment is so incredibly challenging that, at the macro level, things could definitely be so much worse. But on the flip side, this is still a net loss of 9 brilliant, vital businesses - all of which have been crucial in helping consumers support local, boosting local economies, broadening the public's exposure to quality beer, and playing a huge role in their communities. On the whole it's great to see the sector continuing to show such resilience, but figures like these are stark reminders that we can never take our local breweries - regardless of size - for granted. Definitely something to bear in mind as you plan how to stock the fridge over the festive period!

UK's craft beer industry is facing a tough time as the number of breweries going into insolvency surged by 82% over the last year. According to accounting firm Mazars, 69 UK breweries went insolvent in 2021, up from 38 in 2020. Greenwich-based Brew by Numbers, Peckham Rye-based Brick Brewery, Love Lane brewery in Liverpool and Bethnal Green-based Boxcar Brewery were among those that went into administration. The smaller craft breweries suffered the most as Mazars stated that they faced an oversaturated market, high interest rates and soaring inflation. This comes as a major blow to the UK's craft beer industry, which has been thriving in recent years. #beerindustry #beernews #hospitalityindustry

Margins have been taking an absolute battering in beer these last few years. I like the idea for a small retailers relief and further support for hospitality. All MPs should be barred from pubs until reform. Meaning no pint photo opportunties for them, haha. One way to retain more margin is by selling more beer direct into trade rather than via wholesalers and other third parties. We help breweries do this whilst reducing the admin that typically comes with direct trade sales. If this sounds like it might help, then get in touch. This is in no way intended to be disrespectful to any wholesalers. I have had the privilege of working with some great wholesalers in my career and they certainly have their benefits both for customers and brands. But, the game has changed and if you haven’t considered what split of beer your selling D2C Vs direct to trade Vs indirect to trade maybe it’s time to have that conversation.

Last month when Big Shed Brewing announced they had been placed into voluntary administration, the South Australian community rallied behind them. The outpouring of support and generosity from the public, industry, partners and other local businesses was invaluable, and Big Shed are now out of administration, and plan to pour beers for years to come. We’ve seen how important it is to get behind local businesses, and as a state - we are really good at it! However, the support for not only Big Shed but all SA breweries can't stop there. There are currently over 80 independent breweries in operation across the state, many of which are small family run businesses that employ locally and are more than just a brewery, they are part of their community. We know how much South Australians love to support local brands and businesses, so let’s continue to Buy SA. For SA. and together, we can ensure the continued success of this vibrant industry. See SA's 80+ independent breweries and what you can do to help below. #BuySAForSA #SAindependentbeerindustry #buyandsupportlocal #sabusiness #craftbeer

Beer Market in the UK - Brewery closures continue across the UK The first quarter of this year has recorded a -38 net closure rate across the UK compared to the last quarter of 2023. Now, there are a total of 1,777 active breweries in the UK, compared to the 1,815 that were recorded last year Some regions were experiencing overall growth compared to this time last year, with the East seeing a +11 net growth in the past 12 months. Elsewhere, the South East and the South West also saw moderate growth.  #beer #craftbeer #breweries #brewery #beerindustry #beerindustries #beers #beermarket

Biz New Orleans Magazine Louisiana's craft beer industry faces a dynamic landscape, with nearly 50 brewers contending with slowed growth and fierce competition. From transformed industrial spaces to innovative business strategies, breweries are adapting to thrive in a changing market.

"American breweries are currently at about half their capacity. That’s not good! But it’s actually worse that in looks because growth has been dead flat for three years. Were the industry growing, it would need headspace, so to speak, for future expansion. Here’s Bart: “When you’re growing rapidly, excess capacity is a good thing so you can keep up with that growth. Athletic has a lot of excess capacity right now with the purchase of that former Ballast Point facility, but no one thinks that’s an issue. So the ratio in the mid-2010s was different because brewers were rapidly growing into it. As I pointed out in 2015, the 2012 and 2014 ratios look the same, but 2014 production was actually bigger than 2012 total capacity. “So you need to understand the capacity number in the context of its time. If we were growing 18% again right now, even 51% might not be that bad (at 18% you’d use up all that excess capacity in 4 years), but at static or negative growth, it’s a lot worse, because it represents investments that aren’t being utilized.” I don’t have a lot more to add to this, except to say that if you want to open a brewery in the next few years, you might consider starting a contract brewery or alternating proprietorship. Not only would it save you a ton of money at the outset, but you might be doing another brewery a favor in helping them fill up those tanks." https://lnkd.in/eyaEsTDA