Northampton brewery impacted by the cost of living heading into the winter months
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Northampton brewery, Phipps NBC, has expressed their concern ahead of the coming winter months and festive period.
CAMRA (Campaign for Real Ale), a European consumer organisation has indicated that there are a predicted 750 pubs set to close in the first half of 2024. A new report from Frontier Economics also suggests energy bills could be 300 percent higher than pre-pandemic levels, which combined with tax pressures, could strain companies in Northamptonshire.
Phipps NBC, now sitting in Kingswell Street in the Albion Brewery, has been ingrained into the Northamptonshire community for years.
However, with the recent rise in energy bills, it has become a difficult time for microbreweries across the nation. This impact on breweries has been felt by Phipps managing director Alaric Neville, who mentioned the closure of other local businesses. He said: “We have seen a few colleagues shut down.”
With energy prices rising Alaric added the impact it has on everyone on the supply chain. He said: “It's not just us who have taken a hit, it has also hit our consumers and our suppliers with a decline in the supply of malts and hops.
“With the malt being roasted takes up a lot of energy and raises the prices in the supply chain.”
With the brewery run by a gas fire, the rising cost of energy has had an impact, but the brewery boss was quick to say it could have been worse.
Alaric added: “We got lucky, we set our energy prices before the war in Ukraine, but that deal runs out next year. So we have to work and save for that next year.
Alaric also added that customers are struggling with rising energy prices, meaning they have “less money to spend out”.
Especially with the combination of energy bills and increase due to Christmas spending, there is an expected drop off in people going out.
With many local shops and industries closing due to the threat of rising energy bills, Alaric also spoke about the importance of breweries in the community.
He added: “A brewery is more than a company it gives character to a city or town it’s in.
“I love trying different local beers when I go to different places. It’s the patchwork of what separates one place from another.”
With it being a turbulent time for businesses around the area, Alaric was confident to add his high hopes to weather the storm. He said: “We will survive because they love us.”
He went on to encourage the community to band together and support local businesses in the coming months.
You can find more about Phipps NBC here: https://www.phipps-nbc.co.uk/.