Independent breweries seeking more government support

In a new survey of small independent brewers, conducted by the Society of Independent Brewers, 84 per cent expect the pandemic and subsequent social distancing measures to have a lasting negative impact on their business and 80 per cent believe the Government is not doing enough to support them.

The survey found 90 per cent of the UK’s independent brewers think the large multi-national brewers stand to increase their market share as a result of Covid-19 to the detriment of small independents.

Breweries need at least three weeks notice to open and 97 per cent of brewers say they can be ready to supply pubs by the proposed July 4 opening, but only if the Prime Minister offers a road map and guidance on social distancing imminently.

Half of brewers think most pubs aren’t economically viable with social distancing at all and 47 per cent said they were only viable at a metre of social distance.

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James Calder, SIBA chief executive, said: "Getting pubs reopened quickly and safely is simply the first step on the road to recovery for small brewers – for others irreparable damage has already been done. Breweries have not received the same levels of financial support from Government as the rest of the sector, the global brewers are looking to eat our lunch and we face a hugely different, unpredictable and chaotic marketplace when things do reopen."

SIBA and a cross-party group of MPs have written to the Chancellor calling on him to do more to give the sector a fighting chance:

Mr Calder added: “We and a cross-party group of MPs who love independent beer need Government to commit to a clear timetable and guidance of pubs reopening, slash beer duty and extend business rates grants and support to breweries otherwise the investment Government has made through furlough will go to waste. Opening pubs on July 4 is a national priority, but without quality beer from local, independent breweries on the bar, what is the point?”

Flexible furlough has been received well by the brewers, with 53 per cent saying it will help ensure the survival of their businesses, 71 per cent that it will relieve some pressure on their finances and 65 per cent that they will use it to phase staff back into the brewhouse.

However 35 per cent say flexible furlough won’t make any difference to making redundancies and of brewers planning redundancies as much as 15 per cent of their staff could be made redundant, hinting at hundreds of job losses.