8th March 2026
The Scottish craft beer company Innis & Gunn has gone into administration in March 2026, with its brand sold to C&C Group. They are the drinks company behind Tennent's Lager, Magners, and Bulmers) for about £4.5 million.
What happened
Innis & Gunn entered administration and was quickly sold in a "pre-pack" deal to C&C Group.
The sale included the brand and intellectual property, not the operating business.
As a result:
The Perth brewery will close.
All taprooms in Edinburgh and Glasgow will shut.
Over 100 jobs are being lost.
C&C plans to continue producing and distributing the beer using its existing brewing infrastructure.
Why the company failed
Administrators and reports point to several combined pressures:
Falling consumer spending
Demand in hospitality has been weaker than expected.
Consumers have cut back on premium drinks and pub spending during the cost-of-living squeeze.
Rising operating costs
Breweries have been hit by:
energy costs
ingredient prices
distribution costs
These pressures made the business difficult to sustain.
Ongoing financial losses
The company was loss-making for several years:
about £982k loss in 2025
about £2.3m loss in 2024.
Even though losses narrowed recently, the business still couldn't recover.
Craft beer market pressure
The craft beer boom of the 2010s has cooled.
Competition from large brewers and supermarket pricing has squeezed smaller brands.
The background of the company
Founded in 2003 in Edinburgh by Dougal Gunn Sharp.
Known for whisky-cask and oak-aged beers.
Exported to 35 countries and became one of Scotland's best-known craft brands.
It also:
bought Inveralmond Brewery in Perth
raised millions via crowdfunding from fans.
Many of those investors are now unlikely to recover their money after the administration.
What happens next
The Innis & Gunn beer brand will continue under C&C Group.
Brewing will likely shift to larger existing facilities already used by C&C.
But the original brewery and bars are closing permanently.
The brand itself survives, but the original company collapsed due to rising costs, falling hospitality demand, and years of losses, leading to administration and a quick sale to a larger drinks group.
The collapse of Innis & Gunn isn’t an isolated case. Across the UK and Europe, dozens of craft breweries have failed or been sold in the last few years. The reasons come down to several big industry shifts.
The craft beer boom ended
Between 2010-2019, craft beer exploded:
Thousands of new breweries opened.
Bars dedicated to craft beer appeared in most cities.
Supermarkets added craft sections.
But the market became oversaturated. Now there are more breweries than demand, so weaker businesses struggle to survive.
Many brands that expanded during the boom — including BrewDog, Beavertown Brewery, and Camden Town Brewery — survived largely because they secured major corporate backing.
Massive cost increases
Brewing costs have surged since 2021:
Energy
Brewing is extremely energy-intensive.
Electricity and gas prices doubled or tripled during the energy crisis.
Ingredients
Barley and hops prices rose due to global supply issues.
Packaging (cans, bottles, cardboard) became much more expensive.
Distribution
Fuel and logistics costs increased.
For a mid-size brewer like Innis & Gunn, these increases destroy margins.
People are drinking less alcohol
There’s a clear trend toward lower alcohol consumption, especially among younger adults.
Growth areas now include:
Non-alcoholic beer
Hard seltzer
Alcohol-free spirits
Traditional craft beers (often 5–8% ABV) are losing ground to lighter drinks.
Supermarkets squeezed margins
Large retailers control most beer sales in the UK.
They often demand:
heavy discounts
promotional pricing
long payment terms
Small breweries struggle to compete with global giants like Heineken, AB InBev, and Carlsberg Group.
These companies can produce beer far more cheaply.
Brewery taprooms didn’t save many brands
Many craft brewers opened their own bars and taprooms to increase profits.
For example, Innis & Gunn ran several taprooms in Edinburgh and Glasgow.
But hospitality has also been struggling due to:
high rent
staff costs
lower consumer spending
So the taproom strategy didn’t always work.
Investment bubbles burst
During the craft boom, many breweries raised money through crowdfunding and private investors.
Examples include:
Innis & Gunn
BrewDog (its "Equity for Punks" program)
But once growth slowed, valuations collapsed, leaving investors exposed.
The craft beer industry matured. Only breweries that are very large, very local, or owned by big drinks groups are thriving now.