Crisis for the country’s small beer breweries – at risk of closure

Things are slow for Sweden’s smaller beer breweries and many of them are at risk of closing down.
The tough economic situation is felt by the craft breweries.
– It actually looks quite pitch black, says Nils Hultkrantz at the trade organization Sweden’s independent breweries.

A third of the small and medium-sized breweries in the country are at risk of closing down during the year, according to the industry organization Sweden’s independent breweries.

– It is a young industry, so there is no accumulated capital and resources to tap into. Many are still small and quite vulnerable, says Nils Hultkrantz.

The hope now lies in the government making a proposal that would mean reduced alcohol tax for small producers a reality.

Goes more on price than quality

At the Sad Robot brewery in Hisingen in Gothenburg, beer has been brewed for seven years. In addition to increased costs for, among other things, raw materials, transport, taxes and rent, a reduced demand for craft beer has also been noticed in recent years.

– With private individuals, they probably choose a little more on price than they did before, believes Niklas Andersson, CEO of Sad Robot.

He believes that as a private individual, quality or curiosity was more important in the past than what is done now. As for the restaurants, he believes that they are hard pressed financially and that they therefore buy in fewer varieties from small breweries.

Hoping for reduced taxes

This fall, the government will decide whether differentiated alcohol tax will be included in next year’s budget. It would mean lower taxes for small producers, something that would affect many of the between 400 and 500 craft breweries in Sweden.

– It would be very positive if it were to go through, we are looking forward to that, says Nils Hultkrantz at the industry organization Sweden’s Independent Breweries.

He believes that it would not solve the entire crisis, but that it would make a big difference for many people

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