One of the UK’s biggest craft breweries saved from administration
Date: 2024-10-30One of Britain’s biggest craft breweries has been saved from administration after it was acquired by an independent brewing group.
South London-based Gipsy Hill Brewery, which began brewing in 2014, has been purchased by Sunrise Alliance Beverages, parent company of St Peter’s Brewery.
Gipsy Hill, which was founded by Sam McMeekin and Charlie Shaw, has joined the growing, Suffolk-based brewery group expanding its presence in the craft beer movement.
It will sit alongside Curious Brewery, which Sunrise Alliance Beverages purchased in 2023.
The purchase has saved Gipsy Hill Brewery from administration according to a document for shareholders seen by The Grocer.
It stated: “Without further funding we would almost certainly be looking at administration.”
Under its new ownership the brewery, which also operates two London bars, will continue to produce beers such as session IPA Hepcat and pale ales Trail and Bandit in the capital.
Managing director Mr McMeekin and his team will also continue to oversee brewing and day-to-day operations.
Richard Mather, chief executive of Sunrise Alliance Beverages, said: “We’re very excited to embark on this new partnership.
“Gipsy Hill is a fantastic business with excellent beers, strong brands and loyal consumers.
“Our union will enable Gipsy Hill to benefit from our group’s collective resources and operational efficiencies, while retaining its autonomy and character.”
Mr McMeekin added: “This is an exciting time for us at Gipsy Hill.
“This strategic partnership allows us to keep doing what we do best: brewing exceptional beer for our loyal customers.â€
According to the Grocer the deal has valued Gipsy Hill Brewery at £5million.
Gipsy Hill is not the only brewery to have faced difficulties in the current climate.
Earlier this month the Fourpure brewing company placed itself in voluntary administration to “protect itself from market pressures”.
Its decision comes months after reportedly closing a production site and taproom in London.
BREWING STRUGGLES
The number of craft breweries in the UK fell from 1,828 at the start of 2023 to 1,815 at the start of the year.
That now stands at 1,748 according to the latest figures up to June from the Society of Independent Brewers and Associates (SIBA).
The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses.
Craft breweries have been hit hard by the cost of living crisis and the pandemic.
While many producers pivoted to home deliveries during covid lockdowns, they were then hit by rising costs combined with people reigning ion their spending.
The prices of energy, rents and ingredients have all shot up. They have also faced higher interest rates when borrowing money to grow the business.
SIBA chief executive Andy Slee said when the latest figures on closures were published in July: “Independent brewers are reporting good sales growth and strong consumer demand, yet breweries continue to close.
“For most breweries the challenge is financial pressures from rising costs and market access, as well as lingering Covid debt – something SIBA has strongly lobbied Government for help on.â€
The Campaign for Real Ale’s (CAMRA) warned about the pressures on the drinks business this week as it published its Good Beer Guide 2025.
It said that many of the breweries that featured in last years guide have now closed and cited a “perfect storm” of the tax burden, few viable routes to market and stubbornly high energy bills among the factors.
CAMRA Chairman Ash Corbett-Collins said: “This year’s edition of the Good Beer Guide shows a brewing trade that continues to face huge challenges, but one that beer and pub lovers across the UK are still rallying behind.
“CAMRA will be lobbying this new Government to show their support for independent breweries, to try and ensure that the Good Beer Guide 2026 is brimming with new establishments.â€
As well as CMBC’s closure of Wychwood and Ringwood, it said the loss of Elland Brewery just months after its 1872 porter was crowned CAMRA’s Champion Beer of Britain 2023 and the award-winning Nottingham-base Navigation Brewery was “tragic” and a blow for the local community.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
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