More than 200 new breweries opened in 2020 despite Covid forcing the pubs to close
- The pubs were closed for 44% of trading days in 2020 due to their non-essential status
- According to UKHospitality, around 640,000 hospitality jobs were lost in 2020
- The total number of UK breweries is now more than 1,100 higher than in 2016
Over 200 new breweries opened in the UK last year, despite the coronavirus wreaking havoc on the UK hospitality sector, according to new research.
Accounting firm UHY Hacker Young said the number rose by 216 to just over 3,000 in 2020, despite pubs being closed for 44 percent of trading days due to social distancing restrictions.
According to trade organization UKHospitality, around 640,000 jobs were lost in the hotel industry in 2020, making it one of the sectors hardest hit by the pandemic.
According to UHY Hacker Young, the number of breweries rose by 216 to just over 3,000 in 2020, despite the fact that pubs were closed on 44 percent of trading days
However, the researchers believe that the closure of hotel businesses and the resulting loss of sales may have led people to start new breweries and find alternative ways to sell their wares, such as brewing.
The total number of UK breweries is now more than 1,100 higher than in 2016. This is also due to the growth in craft breweries bought by multinational companies, such as the sale of Brixton Brewery to Dutch beer giant Heineken.
“The growth of breweries at a very difficult time for the beverage industry is a positive sign,” noted James Simmonds, partner at UHY Hacker Young. The company said 55 breweries were established between March 16 and June 1.
Simmonds added, “People’s appetite for trying new beers from different breweries has helped new breweries start up in the long run. The sector has not fallen into the discounting trap. ‘
“There is also the prospect of an exit to a great brewer if you can build a valuable brand.”
‘With the closure of pubs and bars, smaller breweries had to adapt to direct-to-consumer models. When hospitality reopens, these new breweries need to build on the momentum they have created through their direct sales to the consumer. ‘
“People’s appetite for trying new beers from different breweries has helped create new breweries in the long run,” noted James Simmonds of UHY Hacker Young
Their research comes less than a week after the nonprofit think tank Localis called for all trading restrictions on pubs to be lifted by June 21 at the latest to ensure “viable trade”.
According to the Power of Pubs report, protecting industry was vital for the UK government as pubs are important to employment and communities, especially in rural areas.
According to government plans, pubs will not be allowed to serve people outdoors until April 12th, with indoor dining not expected to begin until May 17th
Many of the budget measures that Chancellor Rishi Sunak announced two weeks ago were welcomed by the report’s authors, including the expansion of the vacation system and the 5 percent VAT rate for restaurants.
According to the government’s plans, restaurants will not be allowed to serve people outdoors until April 12 at the earliest. Indoor dining is slated to begin on May 17th
However, they warned that more needs to be done to create long-term security for the pub industry. The report recommended introducing central government-funded license fee refunds, lowering beer taxes, and easing the use of outdoor spaces and takeaways for the six months ending June 2021.
It said: “When it comes to treating British pubs with fair consideration, it is as simple as it is from the heart. Where there is a pub, there is a community.
“They have the potential to generate the income needed to reduce national debt and re-start the economy, but need trade support to clear last year’s accumulated debt and increase income and employment in their communities generate “, the analysis continued.
‘The pub and hospitality sector will be vital not only to our economic recovery in the medium and long term, but also to the social resilience of communities across the UK. With this in mind, they should play a central role in any local recovery plan. ‘