Thirst for craft beer sees rise in microbreweries

The number of breweries across Britain has risen by 8% in the past year following a surge in demand for craft beer.

Research by accountancy group UHY Hacker Young shows the number of breweries across the UK now stands at 1,700 - an increase of 65% over the past five years.

"Craft beer is leading the way in the surging popularity of artisan products and has pushed aside other brands in high street bars," according to James Simmonds of UHY Hacker Young.

"This increasing popularity has transformed many microbreweries into highly profitable businesses for entrepreneurs looking for a niche position in the food and drinks market."

As a result of their profitability, microbreweries are increasingly becoming acquisition targets for larger breweries.

In May 2015, SABMiller (Xetra: BRW1.DE - news) purchased London's Meantime Brewing Company. It is expected that other multinational brewing companies may follow suit in buying other UK microbreweries.

"Our food and drink is renowned the world over and for most of us there's nothing more quintessentially British than enjoying a pulled pint of ale in a classic English pub," said Environment Secretary Andrea Leadsom.

"Thanks to the popularity of our pint we're now seeing a record number of microbreweries opening up across the country, creating countless jobs and opportunities for our economy."