How you can help

SIBA Covid-19 Brewing Industry survey

We’d like to thank members and non-members for taking the time to respond to our first industry Covid 19 survey. Achieving 282 unique independent brewery responses is excellent and meant that the quality of the analysis was very high. The Brewers Association received around 400 responses to their survey which given the size of the US market compared to the UK market, means our survey data was robust.

Negative impact on the industry

• 82% drop in beer sales amongst independent breweries • 65% of breweries have stopped brewing altogether, a further 31% saying it has slowed, 3% saying it has stayed the same, and just 1% saying it has increased • 81% of breweries believe the Government is not doing enough to support independent breweries • 54% breweries have not been able to access any of the existing Government assistance • 64% of brewery staff furloughed • 29% of breweries considering redundancies

HMRC ‘time to pay’ arrangements are not working for breweries

• 61% of breweries who tried have been successful in accessing the Government’s

‘time to pay’ service • 1 in 10 brewers had money deducted from their accounts in error by HMRC last month

Independent breweries adapting to survive

• 70% of breweries offering new delivery or takeaway services • 61% of breweries now offering free local delivery to their communities • 55% increase in online beer sales

We used some of these key results to create an infographic which could be easily shared across social media, increasing engagement with broader brewer network.

We will be running another survey in the coming weeks as the issues and the priorities change and we need your support once again in filling this in so we can make our points to Government.

Covid-19 brewing industry impact survey - Media Coverage

We achieved some excellent coverage as a result of the survey results and subsequent PR campaign focussed on the huge drop in beer sales. Highlights being pieces in the Telegraph and Evening Standard plus live coverage on LBC Radio, BBC, and Sky News –but also lots of trade and regional too. Some of the press coverage highlights can be found below.

#PullingTogether –linking beer drinkers with local breweries

We worked with CAMRA to launch Pulling Together, an initiative which aims to link beer lovers with the local breweries near them offering local beer delivery or takeaway services. We promoted this service through our above press work, which has helped to drive people to the site and create new business for members.

SIBA are also co-funding a social media advertising campaign to promote the service. As of 21 April when CAMRA sent over the metrics report the adverts had received 16,577 link clicks, a reach of 135,030, impressions are 233,650, at a cost per result of just £0.02 per link click (that is extremely good, showing the advert is resonating with people).

Ad preview:

We are also working with CAMRA on the next phase of this project, the ‘Brew2You’ app, which uses the data from the above database and allows people to search using the app for breweries near them. We are encouraging SIBA member breweries to join up and crucially have agreed with CAMRA that they will promote all SIBA member breweries with the Assured Independent British Craft Brewer seal within the app.

4. BeerFlex update

The team have spent a lot of time in April chasing debt to ensure that brewers can be paid in full for all beer delivered in March.

I am pleased to report that all brewers have been paid in full for all beer delivered on BeerFlex up to date. In the most part in chasing debt we have been successful and from having almost £600k of pubco debt outstanding at the end of March we’ve managed to secure nearly all of this in payment, or in payment plans spreading out into April and May. Some of our smaller customers have been in touch to say that they are currently looking at grants and loans to help their businesses and will pay as soon as they are able but these will not have a material impact on SIBA’s finances.

5. FFD

At the last Board meeting the Board authorised SIBA the executive to begin the process of finding a buyer for FFD in light of an expressions of interest being made. Through extensive consultation between the SIBA executive and the FFD board we agreed to open up to offers of expressions of interest outside the two we had already received. A communication was published on the 20 th March with a set period for interested parties to express interest, sign a confidentiality agreement and receive a memorandum containing information pertaining FFD.

One party remained at the end of that process and negotiations began.

These negotiations have subsequently stalled due to the Covid19 crisis and the FFD Board have effectively ‘mothballed’ the company to ensure the long term survival of the company.

We will update members in due course when there is an update to give.

6. Industry Restart

Now the bulk of initial lobbying activity is somewhat settled, we are increasingly focussed on industry restart and how to ensure things can return to some form of normality safely. We are working with other trade associations on the protocols for how pubs may open.

A simple reality exists in that for some pubs, adhering to social distancing measures may simply not be possible for financial and or/operational reasons. Either with half the tables and chairs removed you won’t get the throughput therefore it makes no sense to open or your premises (if less than say 150sq m) are not viable to be adapted to include social distancing measures.

Public opinion on their comfort level of visiting a pub will be key. National surveys vary and CAMRA is conducting a survey of its members to understand attitudes. For those reasons we need to be cognisant that pub volumes will not be as they were and competition for lines will be immense.

I have written to all of the Chief Executives of the major pub groups encouraging them to work constructively with SIBA and its members to ensure there are local beers on the bars and have received positive responses. I have also written to the Prime Minister and Government departments highlighting to them the threat posed by the global beer companies to us and the predatory tactics they will use.

7. SIBA competitions and regional meetings

We have taken the decision to cancel all SIBA regional competitions for 2020/21 . In their place we are exploring with the competitions committee the idea of a ‘digital’ competition to find the UK’s best beer in lockdown.

8. How you can help

You as independent brewers can help our industry and our campaigning by:

Keep reading SIBA’s regular emails and tweets for the latest information on Covid 19 Email membership@siba.co.uk if you have a query, or a priority you think we should focus on Fill in our calls for evidence including the next SIBA industry Covid survey. These help us inform our policymaking and give us an evidence base we can take to Government