Warnings about brewing industry are a cause for concern - The Yorkshire Post says

Black Sheep Brewery is a Yorkshire institution. It is a well-known brand that people have an affinity for across the country. Yet despite that, the trading environment put so much pressure on the business that it was forced into administration.

It resulted in a £5m sale to investment firm Breal Group in a pre-pack deal that will save around 140 jobs but taxpayers and creditors could miss out on millions of pounds as a result of a pre-pack administration.

While it is welcome news that the Masham-based company, which made a £1.6m loss in 2022/23 as it struggled with the fallout from the pandemic and rising costs, has been rescued, warnings that other breweries could follow Black Sheep into administration should ring alarm bells.

Charlene Lyons, CEO of Black Sheep, said: “The industry continues to face challenging times. In the last 12 months, 45 breweries entered insolvency in the UK, a three-fold increase on the previous year, as the cost-of-living crisis has squeezed household disposable income.”

All brewers are feeling the squeeze from high costs and the sales have also taken a hit.

It would be a real shame if the current crisis was to reduce the brewery market significantly, leaving just a handful of brewers on a homogenous landscape.

Drinkers would miss the range of choice offered by a vibrant brewing industry.