Celbridge Brewery CEO Warns Of Mounting Costs Facing Craft Beer Sector

Rye River Brewing Boss Tom Cronin says businesses have been absorbing rising costs for five years as brewery numbers decline.

The CEO of Celbridge-based Rye River Brewing has warned that independent breweries are facing "layer after layer" of rising costs, as new figures show more than a quarter of those operating in Ireland in 2023 have since closed.

The number of independent breweries operating here has fallen from 78 in 2023 to 61 in 2026, according to preliminary research for Bord Bia.

Around 22 breweries have ceased production during that period, while just five new breweries have entered the market.

Speaking to Kfm, Rye River Brewing CEO and chair of the Independent Brewers of Ireland, Tom Cronin, said businesses have been dealing with mounting cost pressures for several years.

He said the problems intensified following Russia's invasion of Ukraine, with higher global energy prices having a knock-on impact on the cost of materials used by breweries.

According to Mr Cronin, the cost of a 500ml glass bottle almost doubled within a year, while aluminium can prices increased by around 70 per cent.

Malt prices also rose as producers faced increased energy costs.

Mr Cronin said breweries have also had to contend with the cost of introducing the Deposit Return Scheme, increases in the minimum wage and the introduction of auto-enrolment pensions.

He stressed that many of the measures are positive initiatives, but said the combined impact is putting additional pressure on small and medium-sized businesses.

Water is another significant expense for the Celbridge brewery.

Mr Cronin said Rye River Brewing's water costs have increased by almost 160 per cent over the past four years, with further changes to water charges due to take effect later this year.

He said engagement with Enterprise Ireland, the IDA and Kildare North Fine Gael TD Joe Neville had helped secure the phasing-in of the new charges over five years, but warned it remains another cost for the business.

"It's just layer after layer of cost increases," he told Kfm.

Mr Cronin said breweries cannot simply pass all of those increases on to consumers, particularly during a cost-of-living squeeze.

"Beer is a commodity at the end of the week. It's discretionary. If beer is priced too high, it's not purchased," he said.

He said the sector has been absorbing price increases for around five years and described brewing as a difficult industry in which to make a profit without sufficient scale.

However, Mr Cronin said consumer interest in independently produced beer remains strong.

Rye River Brewing itself is up 21 per cent this year, which he said partly reflects consolidation within the sector as other brands leave the market.

Independent craft beer's share of the domestic market has grown from around 2.5 per cent a decade ago to approximately 3 to 3.2 per cent, according to Mr Cronin, but he said that figure is now largely static.

He said exports also remain an important part of the market for many of Ireland's independent breweries.