Black Sheep Brewery Goes Bust

 

As a real ale drinker, it's sad to hear of the demise of the Black Sheep Brewery, but it's not surprising. Pubs and breweries are closing because the price of a pint of beer in some places, has become far too expensive. In some places, a pint of beer costs more than a bottle of wine.

This is why people are buying from the supermarkets or go in J D Wetherspoon. Even though Tim Martin, the Chairman of J.D Wetherspoon, has recently jacked up the price of food and drink in his 836 pubs, it's still far cheaper to drink in his pubs than most other establishments. His business model is pile it high and sell it cheap. He undercuts his competitors because of economies of scale, where he can negotiate discounts for bulk purchases.

The price you will pay for a pint, will also vary in different Wetherspoon pubs subject to the location. There's no point in blaming the rising cost of a pint of beer on the pandemic, because beer prices have been increasing far faster than inflation, for donkey’s years and so as the tax we pay on it. Back in the early 1970s I could buy ten pints of beer for £1.

Admittedly, wages weren't as high as they are today, but a pint of beer was still far cheaper than it is today. In some places, they're now paying over £5 for a pint of beer. No wonder pubs are closing.