A major player in the UK brewing industry is teetering on the edge of administration for the second time in three years, putting nearly 200 jobs at risk.
Brewery Giant Faces Second Crisis
Keystone Brewery Group, the parent company behind well-known beer brands such as Black Sheep, Hofmeister, and Fourpure, has filed a notice of intention to appoint administrators. The group, which employs roughly 190 staff across its national breweries, is reportedly buckling under the pressure of soaring costs and a significant drop in demand for its pub staples.
This is not the company's first brush with financial disaster. The business previously fell into administration in 2023 before being rescued by the investment firm Breal Group, which subsequently rebranded it as Keystone Brewing Group. The current CEO, Steve Cox, joined earlier this year with an ambitious target to achieve £100m in annual sales by 2028.
Creditor Pressure and Industry-Wide Strain
The move to bring in FRP Advisory as potential administrators is understood to have been triggered by mounting pressure from several of the company's trade creditors. This news adds to a series of recent blows for the UK's pub and brewing sector.
Only yesterday, it was revealed that Diageo, the maker of Guinness, has been forced to increase the price of a pint. Furthermore, a significant shake-up in business rates is set to heap more financial pressure on thousands of independent hospitality businesses across the country.
Business Rates Hike 'Simply Unsustainable'
Despite the Labour Chancellor's recent Budget pledge of the "lowest rates since 1991", changes to rateable values and the replacement of temporary relief with a less generous system mean many will pay more. UKHospitality chief executive Allen Simpson warned that the impending business rates tax hikes will impact "every city, town, village and high street in the country."
"Unfortunately, not one area of the country is spared," Simpson stated. He argued that the increase over three years will be "simply unsustainable for many businesses to absorb," leading to accelerated price rises, job losses, and closures. The industry body is urgently calling on the Government to increase the business rates discount for hospitality from 5p to the full 20p permitted in legislation.
