Last year, Sunrise Alliance Beverages acquired Gipsy Hill, a strategic move to secure the future of this south London brewery as the sector continues to face challenges.
The acquisition aimed to ensure that Gipsy Hill could brew all its beers indefinitely, even signing leases that extend to the end of 2027.
However, the latest update from its landlord has delivered “devastating news”: the upcoming 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,” remarked co-founder Charlie Shaw.
Notably, the company’s flagship IPA, Hepcat, has experienced a 19% year-on-year sales increase this year. Nevertheless, Shaw emphasized that “no amount of growth or improved efficiency” can alleviate the burden of escalating overheads.
Shaw further stated, “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.”
Thanks to the acquisition by Sunrise, the majority of brewing operations will transition to Curious Brewery in Kent.
Shaw indicated this transition will occur once the beers produced at Curious Brewery “match the same exacting standards they do at Hamilton Rd.”
Despite these changes, the plan is to continue brewing at Gipsy Hill for years to come. “We will be investing in the equipment required to revive our specials program and continue our R&D and innovation work,” he added.
“It is the leases of the large warehouses that we can no longer justify. We are investing heavily in our tap room and are extending that space into the neighboring unit.”
Most of Gipsy Hill’s production team will be offered roles within the company, along with relocation expenses when 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,” Shaw noted.
In conclusion, he expressed, “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.”
