Spiralling costs force brewery closures

Two independent breweries have announced closure plans amid soaring costs, as multinational brewers also feel the pinch. 

Warrington-based brewery, Twisted Wheel Brew, explained its decision to close was based on the impact of Covid restrictions as well as the cost-of-living crisis, which have made “business unviable”. The brewery had been active since February 2020. 

“With sales falling, general consumer confidence low, and further increases in raw material costs projected for 2023, we felt it best to close the business at this time,” a social media post read. 

Elsewhere, The Wild Beer Co confirmed that it has entered administration.

A statement from the Somerset brewery read: “The administrators are attempting to seek out potential buyers to acquire the business, however, at this time we have made the decision to halt any trading.”

Noting “spiralling production costs” and inflation as contributors, The Wild Beer Co said: “These factors along with the recent cost-of-living crisis have impacted the company’s ability to succeed.”

However, the brewery said that it aims to “resolve the current position” as it looks for buyers. 

Last month, Asahi put forward a proposal for Dark Star to cease trading at its current site, in Partridge Green West Sussex, by the end of the year.

The company said in a statement that operations for the brand would move to the Meantime brewery in Greenwich.

“This is not a step we have taken lightly, however there are significant challenges in the current economic and operating environment that make this the right course of action for the business and the brand,” the statement said. “The Dark Star site operates significantly below capacity which is unfortunately not sustainable.”

The statement went on to say that the Dark Star beers would remain “exactly as they are today - brewed to the same recipe and taste expected by its loyal fans, whilst retaining its distinct visual brand identity”.

Asahi said the company’s priority is to support all employees who may be impacted by the proposal, and the brewer is currently in the process of consultation with them.

“It would therefore be inappropriate to provide any further detail at this time, but we will share more on our plans for the brand and its future brewing arrangements in due course,” the statement finished.

 

Related articles: