UK Brewery Closures Surge As Italian Wines Target Market

In the United Kingdom, the world of beer and wine is facing a dramatic crossroads. As the country’s famed pubs contend with their own set of woes, the brewing industry is grappling with what many are calling a crisis of survival. Meanwhile, Italian wine producers are eyeing Britain as a critical export destination, armed with new tools and partnerships to maintain their foothold in a shifting landscape. The stories of these two industries, though distinct, converge on the broader challenges and opportunities facing the UK beverage market in 2026.

According to data released by the Society of Independent Brewers and Associates (SIBA), the UK’s brewery sector has suffered a sharp downturn over the past year. At the start of January 2026, the number of active individual breweries had dropped to 1,578, down from 1,715 at the beginning of 2025 and 1,815 in 2024. That’s a loss of nearly three breweries every week, a pace that has alarmed industry watchers and participants alike. The numbers reflect a 37% increase in brewery closures during 2025 compared to the previous year, and the impact is being felt across the country’s communities and cultural fabric.

What’s behind this sobering trend? The causes are numerous and interconnected, forming what SIBA has described as a “perfect storm” of economic pressures. Smaller producers are especially vulnerable, facing steep costs for leasing equipment, higher prices for raw materials, and rising production expenses. Add to that the escalating costs of electricity and employee wages, and it’s easy to see why so many breweries are struggling to keep their doors open. But there’s a twist: despite these challenges, independent beer production has rebounded to pre-pandemic levels, with cask beer—a traditional English specialty—enjoying double-digit growth. Still, the market’s pressures and a spike in mergers and acquisitions have led to the disappearance of 137 breweries in just twelve months.

Andy Slee, chief executive of SIBA, laid out the stakes in a statement to The Drinks Business: “Great Britain is extremely fortunate to have such a wide range of independent and passionate breweries producing beer locally across the UK; but if we don’t act soon to reverse closure rates, we could be facing a survival crisis for British brewing.” Slee emphasized that demand is not the problem: “There is huge demand for beer from local independent breweries—the problem is the tax burden on small breweries, increased merger activity creating market consolidation, and limited access to pubs for small breweries.”

SIBA has issued an urgent call for government intervention, arguing that only structural reforms can fix the underlying issues. The organization wants the government to address the tax imbalance between online and physical retailers, including pubs. Slee noted that even if recent changes to business rates were rolled back, the sector would simply return to its previous precarious state—without the meaningful reform needed to truly tackle the fiscal disparities. “The Chancellor also missed the opportunity to increase the draught beer duty relief to 20% or more, to slow the rise in the price of a pint and encourage people to visit their local community pub more often,” Slee added. He also called on the government to announce the results of its review on market access for small independent breweries, saying this is essential for meeting the growing demand for local, independent beer in a market dominated by global brands.

Beyond economics, there’s a cultural dimension at stake. “Britain has a proud brewing tradition and is home to some of the best beers in the world—we have a wonderful story to tell. The time for sentimentality is over; British independent brewers—like the rest of the hospitality sector—need decisive action from the government,” Slee warned. Without structural intervention, the independent brewing industry could face an irreversible crisis in 2026, putting its future in serious jeopardy.

While British brewers are calling for urgent support, Italian wine producers are looking to the UK as a vital market, bolstered by a new partnership designed to help them navigate the complexities of international promotion. On January 29, 2026, the Italian Chamber of Commerce and Industry for the United Kingdom (ICCIUK) and Agriplan Srl signed a strategic agreement to assist Italian wine companies in accessing OCM Wine funds. These European Union-backed funds, managed nationally by the Italian Ministry of Agriculture and regional authorities, provide up to 50% coverage of eligible project costs for promotional activities in non-EU countries, with a particular focus on the UK.

As reported by Vinetur, the agreement seeks to create a structured model for Italian wine producers aiming to expand internationally. Eligible initiatives include participation in international fairs and events, communication campaigns, public relations efforts, tastings, inbound missions, and marketing actions targeting both industry professionals and final consumers. The ICCIUK will serve as the institutional point of contact for companies interested in the UK market, offering practical support for internationalization and commercial development. Agriplan, meanwhile, brings technical expertise in managing OCM funds, guiding companies through every step—from eligibility checks to final reporting—while ensuring compliance with European and national regulations.

The timing of this partnership could not be more significant. Italy remains one of the main exporters of wine to the UK, accounting for more than 20% of the total value of wine imports, according to recent trade association data. The new agreement is expected to help more Italian wine companies tap into available European funding—seen as an essential tool for boosting competitiveness, breaking into new markets, and consolidating existing commercial positions.

The initiative also reflects ICCIUK’s ongoing commitment to strengthening support mechanisms and partnerships that enhance the global competitiveness of Italian businesses. By leveraging European funds and specialized expertise, the collaboration aims to make it easier for Italian wineries to promote their products effectively in the UK and other non-EU markets. The deal is already attracting interest from producers who see the UK as a key export destination and are eager to maximize their promotional impact by sharing costs with public funding.

Industry observers suggest that this type of partnership could serve as a model for other sectors seeking to navigate the complex landscape of international funding while expanding abroad. For now, Italian wine companies interested in participating are encouraged to contact ICCIUK or Agriplan directly to begin the OCM funding application process and plan their next steps in the British market.

As the UK beer sector battles existential threats and Italian wine producers double down on their British ambitions, the future of the country’s beverage landscape hangs in the balance. The coming year will test whether decisive action and cross-border cooperation can preserve the diversity and vibrancy that have long defined Britain’s drinking culture.