Another 30 breweries launched in London during 2014, nearly double the number set up two years before, as the craft beer revolution gathers pace and attracts more investment into the sector, according to research by UHY Hacker Young.
There were 30 applications to HMRC to launch breweries in London during 2014, compared to 29 applications in 2013 and just 16 in 2012. The number of breweries set up in the capital during 2014 has even broken the figure for 2013 which was a banner year.
As the popularity of craft beer continues to rise, many new start-ups will be hoping to join more established names such as the London Fields Brewery. Brewers which have recently opened in London include:
- Redchurch Brewery, launched in 2011 in Bethnal Green
- The Hackney-based Pressure Drop which was set up in 2012
- The Five Points Brewing Company which opened in Hackney in 2013
- Bullfinch Brewery, opened in 2014 in Bermondsey’s thriving Maltby Street Market
Recent research emphasises the popularity of artisan beer with 38% of Londoners over 18 estimated to have drunk a craft beer in the last six months.
Hub of UK’s craft beer industry
Roy Maugham, Tax Partner, explains: “London has cemented its status as the hub of the UK’s craft beer industry.
“Especially in trendy areas such as Shoreditch and Hackney, the growing appetite for craft beer products is encouraging increasing numbers of start-ups. The recent success of small brewers in the capital is also offering encouragement to budding entrepreneurs and investors.
“Craft beer is beginning to be seen as part of the luxury food and drinks segment with consumers willing to pay high end costs.
“It’s unsurprising to see that London is the driving force of the craft beer sector with its pool of high income spenders. The fact that craft beer is usually locally sourced is a key part of the market’s attraction, but local sourcing and small batch production comes with premium pricing.”
Boutique spirit distillers also blossoming
Our previous research also reveals that the alcohol sector as a whole is blossoming as the number of applications from boutique spirit distillers in the UK increased by 186% to 20 in 2013/14, up from just 7 in 2012/13.
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.
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