The hospitality and brewing sector needs to sell an extra 950,000 pints an hour to recoup the £1bn in extra costs it has seen in the last 12 months, says BrewDog.
BrewDog chief executive James Taylor
The costs include soaring energy bills, rising labour costs, escalating ingredient and packaging prices, and a raft of new taxes and regulatory charges.
The scale of the cost shock has forced many businesses to take difficult decisions to protect their long-term future.
In BrewDog’s case, these include targeted headcount reductions, a small number of UK bar closures, and the sale of the Lost Forest estate in the Scottish Highlands.
“These were not easy decisions, but they were the right ones,” said BrewDog chief executive James Taylor. “They allow us to focus on what we do best — brewing great beer, running brilliant bars, and delivering for our community of customers and shareholders.
“Having returned to profitability in 2024, we are now setting the business up for a period of stability and sustainable growth.”
Emma McClarkin, chief executive of the British Beer & Pub Association, said: “This analysis from BrewDog reinforces the cumulative impact of the huge barrage of costs the industry has had to cope with, and the difficult choices businesses are having to make.
“We urge the chancellor to act in the Budget to recognise the importance of the beer and pub sector to our economy and community by detailing meaningful business rates reform, cutting beer duty, and reviewing punishing employment and packaging costs, so we can thrive at the heart of high streets, towns, and villages across the UK.”
