The number of distillery businesses in the UK has jumped 30% from 131 in 2016 to 170 in 2017, according to new research from accountancy group UHY Hacker Young.
Entrepreneurs are looking to capitalise on the increasing consumer demand for craft spirits, the research claims. Meanwhile, spirts of unusual and innovative flavours are said to have grown in popularity, particularly among young consumers, as has a preference to buy locally from smaller, urban breweries and distilleries.
The figures show that the number of distillery businesses in the UK has surged from 63 in 2012 to 170 last year – an increase of 170%.
Following the rise of niche gins, there has been a similar increase in popularity for craft rum, UHY said. Rum sales in the UK hit £1 billion in 2017, up from £960 million in 2016.
Consumer demand for craft rum has led to a growth in the number of UK rum brands, such as the English Spirit Distillery’s Old Salt Rum, and Spirit Masters’ Glorious Revolution White Rum.
Last month, Matugga Distillers announced it was preparing to start production at its new facility in Livingstone, which it says is “the first rum distillery in central Scotland”.
James Simmonds, partner at UHY Hacker Young, said: “The UK spirits industry is currently in growth mode and shows no signs of slowing, as illustrated by the increase in new distillery businesses.
“As the public demand for artisan drinks and craft drinks continues, many pubs that previously stocked only one brand of each spirit are now giving customers a variety to choose from”.
“Craft spirits are considered a luxury item that many customers are now willing to pay a premium for. This allows boutique brands to sell at higher margins and generate large returns”.
“The growth of the UK spirits industry looks to continue into 2018 as consumer demand for premium-priced spirits, an increase in M&A activity, and the rising number of distillery businesses shows no signs of slowing.”
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