Burnley brewery boss warns on cheap beer
4:23pm Monday 19th August 2013 in News
MOORHOUSE’S Brewery chief David Grant has called on small brewers to stop selling cheap beer.
Mr Grant, managing director of the Burnley firm, warned competing on price rather than quality was damaging the industry.
He said the ever-increasing number of brewers entering the growing cask ale market had led to microbreweries using Progressive Beer Duty (PBD) tax relief to sell beer at rock bottom price, rather than invest for the future.
PBD, a sliding scale of duty, was introduced in 2002 to help small brewers compete.
He said: “Cask ale is the only growing sector of British brewing, but life is getting even tougher with now more than 1,200 brewers in the market fighting for bar space, while pubs close at a rate of more than 20 a week.
“This has led to an unsustainable market for some brewers, but quality and innovation is the way forward, not price slashing.
“Not all microbreweries are doing this, but I would urge all those that are to desist.
“The tax relief was introduced to help small breweries grow, not to benefit licensees and pub companies.”
“In the past, Moorhouse’s benefited from duty relief, but now we have to pay full tax.
“This is not sour grapes. Maintaining margin is crucial to long-term sustainability for brewers.”
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