UK distilleries on the rise as craft spirit craze continues
The number of distillery businesses in the UK soared 30 per cent in a single year as demand for craft spirits grows, according to figures published today.
Distilleries rose in number from 131 in 2016 to 170 in 2017, reflecting an increased appetite for unusual flavours and local spirits produced by boutique distilleries.
Accountancy firm UHY Hacker Young, which published the figures, said the growing demand is largely spurred on by young consumers.
The high sales growth and premium pricing generated by independent brands has led to a spate of acquisitions by established alcohol companies. This January Spanish group Diego Zamora bought a majority stake in Reformed Spirits, owner of Martin Millers’ Gin, while last year wholesaler BI Wines and Spirits bought a 25 per cent stake in Giplin’s Gin owners Westmorland Spirits.
In 2009 west London distillery Sipsmith won a legal battle with HMRC and successfully overturned a law banning small batch distilling, sparking a gin renaissance in the UK.
Rum sales have also jumped from £960m in 2016 to £1bn in 2017, according to the Wine and Spirit Trade Association.
New craft rum brands such as the English Spirit Distillery’s Old Salt Rum and Spirit Masters’ Glorious Revolution White Rum have capitalised on changing consumer tastes.
“The UK spirits industry is currently in growth mode and shows no signs of slowing, as illustrated by the increase in new distillery businesses,” said UHY Hacker Young partner James Simmonds.
“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”.
He added: “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”.
UK distilleries on the rise as craft spirit craze continues
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