Keystone Brewery Group, the parent company behind well-known UK beer brands such as Black Sheep, Hofmeister, and Fourpure, is once again on the brink of collapse. Despite employing around 190 staff across breweries nationwide, the company is grappling with escalating operational costs and a sharp decline in demand for traditional pub beers.
After entering administration in 2023, Keystone was rescued by investment firm Breal Group, which rebranded as Keystone Brewing Group. Steve Cox, who joined earlier this year, has been tasked with reaching an ambitious £100 million annual sales target by 2028. However, recent reports indicate that Keystone has issued a notice of intention to appoint FRP Advisory as administrators, pressured by several of its trade creditors.
The broader hospitality sector is also facing challenges, with Diageo, maker of Guinness, recently increasing the price of a pint. While the Labour Party Chancellor’s recent Budget promised the “lowest business rates since 1991,” changes to rateable values and the replacement of temporary rate relief with a less generous system mean that many independent businesses are bracing for higher costs.
Allen Simpson, CEO of UKHospitality, warns that rising business rates will impact every city, town, and high street in the UK and calls the increases “simply unsustainable” for many businesses. He predicts further price hikes, job losses, and closures, threatening local economies, employment, and community hubs.
In response, the industry body urges the government to raise the business rates discount for hospitality from the current 5p to the full 20p allowed under legislation, seeking relief to help struggling businesses survive.