Kimi Karjalainen and his brother Marko made a significant investment in Bone Machine Brewing Co when it opened in Pocklington, East Yorkshire, in 2017. Their goal was to be a part of the craft beer revolution that was sweeping Britain. However, their dreams were shattered due to a combination of factors including Brexit, the pandemic, the cost of living crisis, and changes to beer duty laws.
The Karjalainen brothers poured their life savings and countless hours of work into the brewery, but it ultimately couldn’t survive the challenges posed by Brexit. Their craft beers required expensive and time-consuming paperwork to comply with post-Brexit trading arrangements with EU countries. As a result, their export business, which accounted for a significant portion of their income, disappeared overnight.
Bone Machine is just one example of over 100 small brewers that have been forced out of business in the past 18 months. The closure of these breweries can be attributed to a combination of Brexit, the pandemic, and the cost of living crisis. Steve Dunkley, founder of Beer Nouveau, has been monitoring brewery closures since 2022 and has identified a significant number of closures over the past year.
In addition to the challenges posed by Brexit, Bone Machine also faced difficulties due to the pandemic and the cost of living crisis. Production costs doubled while their customer base dwindled, leaving them in a precarious financial situation. Multinational brewers were able to offer cheap kegs to pubs, but in return, they demanded control over all the beer lines. This further exacerbated the struggles faced by small craft brewers like Bone Machine.
Kimi Karjalainen, after enduring significant mental and physical health hardships, has decided to give up on his life’s dream. The closure of the brewery has left him devastated, not only for himself but also for the employees who lost their jobs. While Bone Machine is not currently in liquidation, Karjalainen is actively seeking a buyer for the brewery facility.
Other factors affecting the brewing industry include the shortage of carbon dioxide and the increased cost of barley and hops due to Russia’s invasion of Ukraine. These challenges, coupled with increasing costs of electricity and the recent changes to beer duty laws, have created a difficult environment for small brewers.
Despite these challenges, the popularity of craft beers remains strong among customers. Larger companies like Brewdog, Camden Town Brewery, and Beavertown have experienced success, but smaller craft brewers are struggling to stay afloat. With the changes in beer duty laws, there may be a decrease in the availability of high-alcohol and specialty beers. Lager, on the other hand, continues to be a popular choice among consumers.
Pete Brown, co-founder of Forest Road Brewery, believes that craft brewers have experienced a harsh period similar to what occurred in the late 90s in the United States. The market became oversaturated with new breweries trying to outdo each other, ultimately overwhelming consumers and leading to a decline in demand. In times of uncertainty, consumers tend to gravitate towards familiar and recognizable brands.
Overall, the brewing industry is facing significant challenges, and small craft brewers are particularly vulnerable. It remains to be seen how the industry will adapt and whether the demand for craft beers will continue to thrive in the face of these obstacles.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
