Brewery Move Sparks Fresh Inflation Concerns

Hospitality leaders have warned that Jersey risks losing more businesses unless urgent action is taken to tackle rising costs and inflation.

The call follows the announcement that Liberation Brewery, which has operated in St Saviour for more than 150 years, will move its beer production to Somerset.

Marcus Calvani, co-chief executive of the Jersey Hospitality Association, described the brewery’s closure as a “sad moment” for the island, but said the decision was understandable given the financial pressures companies face.

“Communities are often built around these breweries and Liberation has played a huge role in Jersey’s cultural and social life,” he said. “But from a business perspective, the move makes total sense. Unless we get inflation and base costs under control, more companies will either shut down or relocate because it’s simply not profitable to operate here.”

He highlighted water price hikes, along with rising energy, rent and labour costs, as factors squeezing margins. “Brewing is water-intensive—you need about four pints of water to make one pint of beer. When utility prices go up, it hits hard,” he explained.

The announcement means Stinky Bay Brewery will soon be Jersey’s sole brewer. Co-founder Matt Topman said the news was disappointing for the island’s beer scene.

“It’s a shame to lose such a longstanding brewery,” he said. “It doesn’t really create new opportunities for us—Liberation will still run its pubs. What it does mean is we’ve lost one of our few brewing friends here.”

Topman added that challenges were not unique to Jersey, with breweries across the UK also struggling under rising costs and consolidation. “If people stop drinking local or supporting independent producers, you just end up with a few big companies dominating,” he said.

In response to concerns from the industry, the Government of Jersey said it had allocated £20m under its Better Business Support package to help firms improve productivity, develop skills and strengthen resilience.

Officials stressed they remained committed to ensuring businesses across all sectors had “the tools they need to thrive”.