UK distillery numbers grow by a fifth in 2019

The number of distilleries in the UK grew by 20% in 2019 to reach 246, bolstered by demand for “authentic” and flavoured products.

Lagg Distillery on the Isle of Arran opened in 2019

According to accountancy firm UHY Hacker Young, there were 205 UK distilleries in 2018, but that figure has now risen to 246 after a further 41 opened in 2019.

The number of distilleries in the UK has grown year on year since 2011, when there were just 110 distillers in the country.

The premium prices consumers are willing to pay for authentic smaller brands was said to have driven demand for ‘craft’ spirits, which has lead to the increase in distillery numbers, according to UHY Hacker Young.

The firm also cited the “increasing popularity of flavoured spirits” as a major driver, with new brands creating flavoured expressions such as lemon sherbet, pear drop and Parma Violet.

James Simmonds, partner at UHY Hacker Young, said: “The growth in British craft distilling has not stopped yet. Whilst gin sales growth is beginning to taper off, new distillers are still entering the market and M&A (mergers and acquisitions) deals are being completed.

“Growth won’t continue at this rate forever, but for now, domestic and overseas consumers’ demand for UK craft spirits hasn’t yet been met.

“The trend for authentic local artisan food and drink looks to be here to stay, and that will continue to tempt entrepreneurs and investors into the craft spirits industry.

“While artisan gin has been the big growth driver over the last five years, there is also strong interest in some of the smaller artisan whisky distillers in Scotland.”

According to UHY Hacker Young, exports of UK gin grew to £672 million (US$825m) in 2019, while Scotch exports increased by 4.4% to reach £4.91 billion (US$6bn) in the same year.