If UK breweries could make a wish, they would likely ask, “People throughout the Kingdom, please drink more beer!”
Wait, maybe they already have.
Please stay with me for a moment, I do intend to dive into profitability of the UK beer industry but am prone to a whimsical introduction.
Sales of beer in the UK have been on the climb over the past few years after significant decreases starting in 2009 according to Statista.
According to the Telegraph in 2018, the UK stood in twenty-fifth place globally in per capita consumption by country. In volume the same year, the Kirin Holdings Company, Limited reported that the UK ranked number eight in the world with good weather and a World Cup driving an increase of 5.7%.
But the times, they are a changing. Britons are changing where we buy, what we buy and even how we buy. How does that effect breweries and are they preparing or already well prepared for the changes?
The numbers above show that in 2018 more than 68% of our beer was produced by the top four brewers. According to Carling Partnership, by 2019, 80% of Britain’s beer came from these same four producers.
So, what is changing you ask?
In a word, profitability.
There are some interesting consumer trends driving industry profitability with profound effects:
So how do the breweries continue to meet the demands of their shareholders or owners?
They search and prepare for these market changes and they set goals which almost always include becoming more efficient. Gains of six to eight percent production efficiency means a great deal to large brewers.