Keystone files notice to appoint administrators after swathe of brewery buyouts
Keystone Brewing Group, formerly known as Breal, which swooped in to acquire Yorkshire’s Black Sheep Brewery, Magic Rock and North as well as Warwickshire-based Purity and London’s Fourpure, Brick, Brew by Numbers and Wolfpack, has filed a Notice of Intent (NOI) to appoint administrators.
The group, which also produces non-alcoholic brand Big Drop under licence and distributes Bavarian beer brand Hofmeister and French cider and calvados brand Sassy in the UK, is now seeking to restructure or sell parts of its business.
‘Fighting’
Administrators from FRP Advisory are reported to be responding to a “significant” fall in sales across Keystone’s newly-acquired portfolio which saw many of each of the brewery’s team members depart amid the takeovers over the past few years.
In a recent statement, Masham’s Black Sheep Brewery stated that it is now “fighting for the future” and that filing the NOI to appoint administrators is simply a “protective measure that allows us to keep trading as normal while we secure new investment or explore a potential sale”.
The statement told beer fans that the NOI for the appointment of administrators gives it “breathing space”.
One source close to the scene told the drinks business that “you couldn’t make it up”.
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Uncertainty
The move, which saw independent breweries, once built by beer lovers and supported by the sector, picked up by the group now places each of the breweries in uncertainty. At the point of acquisition, many of the businesses collected by Breal, now known as Keystone, lamented their future as they faced restructure, lay offs and adaptations to brewing locations following the acquisitions with many of their key figures leaving following re-ownership.
Criticism
Keystone’s reputation for collecting breweries when each of them fell on hard times has suffered somewhat since its actions in handling the businesses. The group was criticised by one Black Sheep shareholder who called its pre-pack administration deals as “nothing but glorified daylight robbery”.
db has reached out to Keystone for an update on its situation and its prediction of plans and sales for each of its brewery assets as well as asked about the fate of its brewery workers at each of its currently-owned sites.
Speaking on behalf of Keystone Brewing Group’s board, CEO Steve Cox said: “This is a pivotal moment for our business but we are still brewing, still delivering, and we are here to stay. The decision to file a notice of intention to appoint administrators was not taken lightly, but it is a responsible and strategic move that allows us to assess the best way forward.
“The fundamentals of the business remain strong — our teams are committed, our brands are well loved, and our operations are resilient. We are focused on emerging from this process stronger and more stable, ready to serve our customers for many years to come.”
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