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Uk Brewing Industry Essay

498 words - 2 pages

Industry/Market Analysis

Industry Size

With annual sales in excess of £18 billion each year beer is undoubtedly a huge market in Britain.
Information from Euromonitor shows that the UK Beer Market size is of 4, 364.3 million liters in 2013, a number that has consistently been decreasing since 2011 where the total volume was of 5,152.3 million liters2. Along with the volume size, the Consumer Expenditure on Beer was of 3,984.3 million £ in 2013, a number that represents a diminution in three consecutive years since 2011. As for the general alcohol consumption, it goes up to £15 billion per household. The beer industry is extremely competitive as Britain has more breweries per head of the population than any other ...view middle of the document...

More adventurous, new and creative beers have been doing very well 2014. This being said craft beer is no longer being considered a niche market as it is becoming more and more popular in the UK with one third of the population stating that they associate craft beers with high quality that they would be willing to pay for. According to a report by CGA Strategy, craft beer sales grew 79 per cent in the UK in the year to August 2013, and a quarter of the country's pubs and bars now stock them.

Technological changes

There are many different technologies in use in the beer industry including beer membrane filtration, bioelectric technology and advanced water treatment processes. Many companies such as the leaders in the industry (namely Heineken and Carlsberg) are currently in use of such technologies with an aim to reduce water consumption in addition to energy use.

Legal/ Regulatory Issues

As a company who is producing alcohol for consumption inside of the UK it will be necessary to be authorised and registered for the production, distribution, and selling processes. This registration is performed with HM Revenue and Customs (HMRC). All beer produced for commercial reasons that is also above a 1.2% alcohol level, is charged a Beer duty after the company is registered as a brewer. Once you have registered as a brewer you must do a number of things, for example; keep specific records and accounts, calculate Beer Duty due and make returns, pay Beer Duty by Direct Debit. And when applying for the first time you must provide a financial guarantee to cover any duty you will later owe on beer aimed for the UK market. In the UK you must also consider beer labelling requirements
Labels must be in British English

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