Commentary: Trouble brewing for craft beer market as Singapore’s Archipelago bows out

SINGAPORE: Local craft beer brewery Archipelago has fallen victim to what some commentators are calling the “beerpocalypse”. The impress, owned by Asia Pacific Breweries (APB) Singapore, will end operations at the stay of June.

For craft beer brewers across the sector, these are making an are attempting instances. In 2023, a staggering 418 breweries in the United States comprise been shuttered, while in Britain, 52 declared insolvency.

Established in 1933, Archipelago is Singapore’s second-oldest brewery, first of all situated shut to Alexandra Brickworks. After the emblem lay dormant for heaps of years, in 2006 Archipelago used to be given a brand unusual lease of lifestyles as APB’s craft brewing arm. APB produces beers a lot like Tiger, Anchor and the native licensed version of Heineken.

Nonetheless, APB’s owner Heineken has determined to drag the drag on the artisanal brewery after 18 years, citing a desire to streamline their portfolio amid “declining craft beer market realities and excessive operational charges”.

These pressures comprise the toll taken by battle in Jap Europe – Ukraine has historically been a foremost offer of wheat and barley, key ingredients in beer – and inflation, driving up the cost of all the pieces from ingredients and packaging to shipping.

Rising hobby rates are also impacting brewers who comprise borrowed to fund their industrial or acquire property, while cost-of-living pressures are reducing query. With diminished discretionary spending, of us are simply going to the bar much less, and might perchance get mainstream beer at S$15 (US$11.10) per six-pack extra attention-grabbing than enviornment of interest ales costing S$15 per pint or extra.