Number of new breweries in London jumps by 24% in just a year

This publication was covered in City AM, Daily Express, Daily Mail, Guardian, The Times and the i on 29 March 2016. Additionally, the publication was covered in Eat out Magazine on 30 March 2016.
  • As the rest of England sees a slowdown in the number of new breweries

The number of new breweries opening in London has reached a new high; jumping by 24% in just a year from 29 in 2014 to 36* last year.

The ever-growing popularity of craft beer alongside other boutique food and drink products has meant the number of micro-breweries within the city has increased again this year.

London has been the epicentre of the UK’s craft beer revolution, and the success that breweries such as The Camden Town Brewery or The Kernel Brewery have had, has encouraged more start-ups to be established.

The Camden Town Brewery’s success led to them recently being acquired by AB InBev in a deal worth a rumoured £85m.

One of the key factors in the rising popularity of craft beer is its reputation as a luxury product, often viewed by consumers as an aspirational item.

James Simmonds, partner, comments; “Craft beer has quickly become the drink of choice for pub-goers especially in London which has cemented its position at the centre of the UK’s craft beer industry.”

“It’s not surprising that London has such a large amount of new microbreweries, with the high numbers of young professionals working within the City.”

“Because craft beer is viewed as a luxury good, customers are prepared to pay a higher price in comparison to other more commercially branded beers.”

“Many microbreweries within London have had such success in the last few years, that they have now become household names and this in turn has only spurred more entrepreneurs to try their hand at brewing.”

“The popularity of craft beer has spread from its core followers in the “hipster” areas of Shoreditch and Hackney across the Capital and the rest of the UK.”

Breweries which have recently opened in London include:

  • Long Arm Brewing Co launched in 2015 in Ealing.
  • Hackney based 40ft Brewery was set up in 2015.
  • Bullfinch Brewery launched in 2015 in Lambeth.

Slowdown in new breweries opening in the rest of England

The rest of England saw a slight slowdown in the number of new breweries opening in the last year, with the number decreasing by 10% to 249 breweries opening in 2015, from 278 in 2014.

Despite the decline, the number of new breweries opening throughout the UK remains high. Recent research by CAMRA (Campaign for Real Ale) showed that the number of breweries in the UK hit an 80 year high in 2015.

The rest of the UK saw small increases in the number of new breweries:

  • 27 new breweries opened in Scotland in 2015 compared to 26 in 2014.
  • Wales had 17 new breweries opening in the last year, a rise from 11 the year before.
  • Northern Ireland had a slight increase from 6 in 2014 to 7 in 2015.

The Government’s Small Breweries Relief Scheme, introduced in 2002, provides tax relief for brewers producing less than 10.6 million pints of beer a year. Tax relief is based on output where the very smallest brewers, those with an annual production of less than 880,000 pints, receive a 50% duty discount. This discount on duty gradually reduces as beer production increases.

The number of new breweries opening in London jumped by 24% in a year

No of new breweries in London *Year end 31 Dec 2015