The pandemic allowed some independent breweries to reinvent their business models and become more resilient, two studies led by Northumbria University suggest.
Academics from Newcastle Business School, part of Northumbria University, Anglia Ruskin University and the University of York looked at the UK's craft brewing industry before, during and post-Covid - and found location was a major determining factor of success. Separate research also showed many brewers successfully adapted to pandemic restrictions including selling cans and bottles to individual customers rather than casks and kegs to venues.
Despite some 200 UK breweries having closed since 2020, the study found that operators who were quick to react and use creativity fared well. A willingness among consumers to buy from local, small businesses benefited those that had taken risks in adapting business models.
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Of the brands researchers spoke to, some had narrowed the range of beers brewed to focus on flagship labels and diverted investment into marketing. Making efficiencies and cost savings were also seen as important factors.
And urban operations were found to be more likely to secure government support and adapt to restrictions. Researchers pointed to town and city-based brewers having more concentrated customer bases as one of the key factors.
Research lead, Professor Ignazio Cabras from Newcastle Business School, said: "Being located in an urban or rural area made a difference for breweries during the height of the pandemic. Urban breweries reacted more promptly to the crisis and adapted to changes faster than rural breweries.
"While our research demonstrated the cruciality of financial support provided by the Government to breweries during lockdowns and movement limitations, support by local people and other local businesses were equally significant factors in how craft brewers, in the absence of pubs being open to supply products to, survived the crisis."
Ben Cleary, founder of Newcastle-based Full Circle Brew Co said: “As a brand new start-up we launched our first batch of beer right as the pandemic hit, which had its positives and negatives. We didn’t have well-established routes to market, so we were completely flexible and could adapt very quickly.
"We moved all of our production from keg to cans, set up a website within two weeks and launched FCBC Now – our free same day local delivery service. Export became a lifeline to us – by October 2020, export made up 70% of our sales - until Brexit was implemented!
“Community engagement was also a key driver for us. In the early days of the pandemic, with many people furloughed and unable to go anywhere we put on online tasting sessions. As restrictions eased, we teamed up with some of the best North East craft beer bars, to launch our Full Circle North East Revival Tour, hosting tap takeover events at their venues to bolster sales and providing some free kegs to each of the bars to encourage people to support local, and enjoy great beer.
"Supporting communities both locally and further afield remains as important to us as we move to a post-Covid economy. We’ve run initiatives to fund brewing qualifications to support women to looking to work in the sector, created beer packs with a portion of the profits going to Women's Street Watch Newcastle and collaborated with Medical Aid Ukraine Northeast and Ukrainian brewery Varvar to help get essential First-Aid equipment across to Ukraine.
"Using the brewery as a force for good has helped us to establish our business through a really difficult time."
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