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Small breweries benefit from resurgence in local authentic heritage products

The UK is seeing a resurgence of small businesses producing authentic, heritage products according to Buying British in 2017, a report from GS1 UK, the supply chain standards member organisation with a community of over 31,000 UK businesses.

New GS1 UK membership data reflects current business and consumer trends as it shows an uptick in more modest-sized new joiners compared to previous years, as consumers increasingly want their food, drink and clothing to demonstrate their local heritage and have fewer air miles. In 2016, 78% of new members had a turnover of £500,000 or less, compared to 58% of all members in 2015, demonstrating a strong shift towards smaller businesses.

Businesses in the food and groceries sector account for the largest single percentage (20%) of GS1 UK’s membership. The sector is also one of the fastest-growing, with 12% of new joiners in 2016 originating from the food and groceries sector as shoppers seek to buy British.

In terms of actively thinking about the provenance of food, 79% of consumers said it was a consideration (63% some of the time, 16% all the time) and just a fifth said they never thought about it . Three-fifths of shoppers say place of origin is at least as important to them as other factors, such as price and quality, and 55% specifically say they prefer buying UK brands to support British businesses (citing reasons, such as increased trustworthiness and being more attuned to needs and tastes).

The British beer brewing sector has grown from just 140 breweries in 1970 to an excess of 1,700 – with the UK now having more breweries per capita than any other country . Other craft drinks are also seeing an upswing in demand. The number of gin distilleries has doubled in six years and sales of the spirit recently surpassed £1bn for the first time .

This increased demand for craft drinks is reflected in the growth of GS1 UK beverage members. And although drinks manufacturers account for a relatively small percentage of overall members – less than 1% of GS1 UK’s total membership – the rate at which they join is increasing significantly. In 2016 they made up 3% of new joiners, swelling their ranks by 41% from 316 to 447 over a 12-month period.

Gary Lynch, CEO at GS1 UK says: “Buying British is back in vogue. And it’s the smaller companies that are driving this trend. Brits love an underdog story and this affinity to the unlikely hero isn’t limited to the sporting arena, with shoppers being just as likely to back the small guy at the checkout. GS1 data shows consumers are becoming more domestically focussed when it comes to their spending habits. Heritage, provenance and traceability are no longer nice-to-haves but increasingly important factors that can make the difference between where consumers choose to spend their money. While there will always be some products and services we’re happy to go to major multinationals for, supporting the local start-up is back on the agenda.”