A spate of takeovers is expected this year as beer behemoths look to elbow their way into the UK’s booming craft beer market, an accountant said yesterday.
Adam Hardie, head of food and drink at Johnston Carmichael, said the explosion of new micro-breweries would continue in 2016 and the number of deals being inked would follow suit.
Some 20 craft breweries opened in Scotland last year, giving the country a total of 93, according to figures from the Campaign for Real Ale.
The UK now has 1,300 craft breweries – more per capita than anywhere else in the world.
The highlight for dealmakers in 2015 was the sale of Camden Brewing to InBev for £85million.
But craft beer industry leaders have warned the quality of products will be watered down by multinationals once the takeovers have gone through.
Analysts have said other firms are sure to follow InBev’s lead, taking advantages of craft brewers’ ambitions to become global players.
The appeal for buyers is obvious – the UK has got a thirst on for craft beer. At a time when the UK market for beer consumption is largely flat, craft beer is growing at 23% annually.
Mr Hardie said: “Consolidation is undoubtedly here. We are seeing, and will continue to see, big players with more investment behind them operating in the British craft brewing market.”
An upcoming industry event will present a great opportunity for the seeds of transactions to be sown.
Bosses from nine Scottish breweries are lined up to be among the 8,000 attendees at Craft Beer Rising, in London, on Friday and Saturday.
For the first time, the event will host an invitation-only session for brewers to meet potential buyers from the same industry.
Richard Yates, general manager of industry body The Brewers Association Scotland, said: “It is important to us to ensure Scottish brewers are getting the profile they deserve at key industry events such as Craft Beer Rising, which gives them the opportunity to showcase their products to important buyers and decision makers.”
James Withers, chief executive of Scotland Food and Drink, said: “We are really ambitious for Scotland’s brewing sector and believe the potential growth for the industry is huge.
“Consumers are becoming more discerning so our breweries are in the right place at the right time.”
Mr Withers, whose Scottish Government-backed organisation is tasked with increasing the value of Scotland’s food and drink sector, added:
“There are more than 90 brewers across Scotland producing a wide variety of specialist beers. This is testament to the brewing renaissance that’s under way.
“Craft Beer Rising offers a great platform for our brewers to meet buyers and other key decision makers.”