78 BREWING & BEVERAGE INDUSTRIES BUSINESS 2018 is off to a good start at Brewing Services & Consultancy Ltd, with the commissioning and first brew at a brewery in Edinburgh taking our tally of new brewery projects to more than 180. But what trends are we predicting for brewery businesses looking to start 2018? Brewery Turnover Breweries such as Saltaire and Goose Eye doubled or even trebled their capacities in 2017, while others such as Hawkshead are set to do the same in 2018. Last year, however, the country also saw a large number of breweries close; not since 1999 when the Firkin Brewing Group ceased trading and over 90 brewpubs closed overnight have we seen such a reduction in brewery numbers. Though this was more than equalled by the number of new breweries starting up, we anticipate a steady turnover of breweries for the foreseeable future. Quality vs Quantity Some believe that we are reaching an industry saturation point, both in terms of the number of breweries and in the number of different beers offered to the consumer. Creating ever more varied products, while possibly useful for exposure, is not a sure-fire way to increase sales and can risk the opposite if the core beers are neglected. Time and time again, we find that successful breweries focus on quality and consistency, offering beers that both licensed retailers and drinkers alike can put their faith in. Red Tape Whilst the brewery in Edinburgh may well be our first to start production in 2018, both it and the two breweries we are commissioning over the next few weeks were expected to be in production before the end of last year. With these and other projects, there were the usual building work delays, but much of the blame can be laid at the feet of the increasing red tape required for starting a new brewery or expanding an existing brewery. Navigating the complexities of planning permission is becoming ever more difficult, with even minor queries taking months to overcome, whilst this last year has also seen problems with water companies being slow to issue consents to discharge effluent or even, in one case, not knowing where their own drains are located. The increasing numbers of breweries is also putting an apparent strain on HMRC; with brewing licences or AWRS certification often not granted without site inspections and only a limited number of officers, delays in receiving the official sign off to brew and trade are becoming increasingly common. All these delays can have a serious effect on when a brewery can start operating, with projects which once took six to nine months to complete now taking nine to fifteen months or longer. Patience & Guidance New brewery entrants should have the patience to work through the inevitable delays and the resolve to keep going, knowing that sooner or later their project will come to fruition. Delays can be expensive so having deep pockets and adequate financial contingency is essential, as is knowing where to go for the answers and solutions to the many technical questions and problems which crop up along the way. 2018 – what to expect Rob Smith of Brewing Services & Consultancy Ltd looks into his crystal ball Soapbox THE LAST WORD Rob Smith is a Diploma-qualified member of the Institute of Brewing & Distilling, having entered the brewing industry following a Master’s Degree in Biology. He gained practical experience of brewing cask ales and craft lagers at Dartmoor and Freedom Breweries and spent three years as QA Brewer at the Meantime Brewing Company, before joining Brewing Services & Consultancy in 2015. Brewing Services & Consultancy Ltd has been providing technical support and training to brewers and breweries of all sizes for three decades www.brewingservices.co.uk For more information visit: 78_Layout 1 14/02/2018 10:04 Page 1