South London’s Gipsy Hill is to move the bulk of its production to Kent following a major rent increase by its current landlord.
The business, which was acquired by Sunrise Alliance Beverages last October, joined the the UK brewing group that owns companies such as St Peter’s Brewery, Wild Beer Co, Curious Brewing and Portobello Brewing.
The brewery, which was founded in 2014, had intended to keep production running in London but the new development has forced the business to look outside of the capital to handle the majority of its brewing business.
Charlie Shaw, co-founder of Gipsy Hill, said in a statement: “As you know, this time last year Gipsy Hill became part of Sunrise Alliance Beverages, a move that guaranteed our future in the face of the continuing headwinds our industry faces. As part of this move, we had hoped to be able to continue brewing all of our beers indefinitely in Gipsy Hill. We even signed leases to the end of 2027 to this end.
“This month we received the devastating news from our landlord that our next rent increase will be double digits once again. The resulting £/sq ft rate will be an eye-watering 430% higher than the rate we started on 12 years ago. Throughout our tenancy at Hamilton Rd, rent increases have been both continuous and sharp in nature.”
Shaw said that espite all the success the team continues to have at Gipsy Hill, including a 19% year-on-year increase in sales of their flagship Hepcat this year, no amount of growth or improved efficiency can offset the escalating overheads.
He added: “We have never and will never make changes that compromise the quality of our beers. Whether that’s slashing tank time or changing recipes. Quality remains the bedrock of our business and our brand.
“We are fortunate that we have the option to move the majority of our brewing to one of our sister sites within Sunrise: Curious Brewery in Kent. This transition will happen once beers produced there match the same exacting standards they do at Hamilton Rd.
“The plan is to continue to make beer at Gipsy Hill for many years. We will be investing in the equipment required to revive our specials program and continue our R&D and innovation work. It is the leases of the large warehouses that we can no longer justify. We are investing heavily in our tap room and we are extending that space into the neighbouring unit.
“Gipsy Hill exists largely because of the dedication and hard work of various people over the years. This news will impact our team in different ways and we are working to ensure people get the best possible outcomes. The majority of our production team will be offered roles elsewhere in the company and will be given relocation expenses where necessary. I was proud that we were able to tell all employees that we would protect the value they had accrued via the employee ownership scheme that myself and Sam launched back in 2021.
“We hope that you will continue to judge us on the quality of the beers we produce and the service we provide. We will not waver in our commitment to both. The commercial viability of having a large or even midsized brewery with a London postcode has been brought sharply into question in recent times. Those times have caught up with Gipsy Hill, but we have an opportunity to make this business work, an opportunity that we will go after with everything we have.”
Photo: James Beeson
