Calling time: Six Scottish brewers among 38 UK beer-makers to close in opening months of 2024

“I’m hopeful we’ll see the dial swing into the positive as we did in Q2 2023.”

British brewers may be looking to drown their sorrows after a tough start to the year during which 38 beer-makers folded, including six in Scotland.

Releasing its latest quarterly tracker, the Society of Independent Brewers and Associates (SIBA) said every region of the UK either saw a reduction in the overall number of brewers or remained the same. The figures show that the total number of “active” brewers now stands at 1,777, a drop of 38 since the final quarter of 2023. A year on year comparison shows a slightly more positive picture, with some regions seeing overall growth when compared to the first quarter of 2023.

Andy Slee, SIBA chief executive, said: “Seeing a 2 per cent drop in the number of breweries in the UK is a small shift, but not the start to the year the industry had hoped for, and as we look ahead to what promises to be a busy summer for pubs I’m hopeful we’ll see the dial swing into the positive as we did in Q2 2023.

For 38 UK brewers the glasses run dry during the first quarter of 2024.

“There is no single reason breweries in the UK close, but for most it is a combination of rising costs and slowing sales caused by the cost of living crisis, which when compounded by the repayment of substantial Covid loan debts makes many businesses struggle to turn a sustainable profit. And while the price of a pint on the bar is already high, this simply isn’t passed on to small brewers - with the price of a pint largely eaten up by one of the highest levels of taxation in Europe, and huge increases in raw materials and production costs for brewers.”

The UK government’s differential rate of duty for draught beer in pubs and taprooms, meaning there’s less tax on beer sold in pubs compared to shops and supermarkets, has been hailed as a hugely positive step. However, SIBA is arguing that it must go further to have a lasting impact.

Slee added: “Extending the draught duty relief to 20 per cent would be a game-changer for the industry and go some way to keeping the price of a pint in pubs affordable, while ensuring independent breweries are able to turn a sustainable profit.”