An award-winning small brewery in Margate has closed its doors after 10 years of trade due to “a perfect storm of big debt, poor sales, cash flow that doesn’t flow and rising costs.”
Jonny and Katie Spanjar launched Northdown Brewery on a small scale in 2016 after moving to Margate with their two boys. In 2018 the couple moved operations to Westwood Industrial Park where they produced cask beers for pubs, restaurants and micropubs in Thanet, Whitstable, London and further afield.
The Westwood unit and taproom had also been a hub for events, including celebrating the Green Hop Festival, and in 2020 scooped a Taste of Kent award with the Kent Beer of the Year title for their Pale Ale Mary.
But the couple say they have been crippled by increasing costs and the struggle against big breweries and cheap alcohol in supermarkets.
Katie said: “We’ve tried everything to make it work but had to call it in the end. The industry is in a total mess as are many others.
“Since 2020 our raw material costs have gone up 30% and sales have decreased by 5% each year, throw in an increase in minimum wage and National Insurance and it’s just not sustainable anymore.
“Three breweries control 94% of the market coupled with supermarkets selling beer ridiculously cheap, it just kills us.”
The pair say an impending increase in energy costs this winter will likely see more small businesses go under.
Announcing the closure on social media, the couple said: “Independent breweries are hammered by the big boys and indie breweries are left a teeny 6% of the beer market to fight over.
“With pubs operating on lesser hours or closing, supermarkets offering craft beer at a ridiculous price and the general price of everything for folks, it’s been a real struggle and one that we haven’t the energy to battle anymore.
“The industry is in deep trouble so visit the taprooms, buy directly from the brewery, buy the merch – support however you can.
“Eight and a half years (at the Westwood Ind Estate).
“There have been a lot of really joyful events, found and employed a loyal and wonderful team, made beautiful bonds with our customers, worked alongside insanely talented artists and graphic designers, collaborated with the loveliest of folk from the Margate community and, most importantly, brewed award winning beer.
“It’s a mix of emotions right now. We came to Margate to start this business so it’s going to be a little odd for a while.
“Thank you for the many years of support.”
Northdown Brewery is closed with immediate effect.
A separate business with a partner, the Cockle and Hen bar in Margate, continues to trade as usual.
