The Society of Independent Brewers (SIBA) has said that it expects to see a boost in demand for local beers from UK craft breweries in the wake of the country’s decision to leave the European Union.
The association has based the prediction on past experience of economic downturns, with evidence showing that consumers opt to “trade up on treats”.
SIBA managing director Mike Benner said: “There is plenty of doom and gloom following Brexit and while it may be the case that many consumers will look for better deals on household spending generally, for beer there are some important lessons to be had from recent history. In the 2008-09 recession, we saw many consumers applying ‘quality over quantity’, choosing premium local ales over mainstream beers. We also saw a strong ‘community-comfort’ effect whereby, in times of uncertainty, people tend to associate themselves more with their own local communities. In many ways it was these consumer trends which drove the continuing growth of local craft beer. We expect that trend to continue in the coming months of uncertainty. These effects could be positive for British craft-brewed beer in both the on- and off-trade.”
SIBA has also predicted that the weaker pound will have a positive impact on the UK’s pub and bar industry, as more British citizens are expected to holiday at home and overseas tourists are attracted to the UK.
Mr Benner added: “We know that the great British pub and our unique British beer are an essential part of the tourism mix and we may see some positive effects as ‘staycations’ rise and tourism authorities work to boost the number of overseas visitors. It is essential that pubs get their range right in light of this, ensuring that quality local beers from craft breweries feature heavily in their offer.”
While the biggest market for SIBA brewers is local, around 17% of members exported their beers in 2015 and the trade body expects this to increase in response to the weaker pound.
“Many SIBA members are understandably anxious over the uncertainty of trade deals following Brexit, but will also look to maximise the opportunity which arises from the growing interest in craft beer around the world,” Benner continued. “British beer is unique in this booming global marketplace and craft brewers will see opportunities arising from this.”
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