More than 50 new distilleries opened in the UK last year, showing the “explosive creativity” of craft spirits, according to a study.

The number of “boutique” distillery is pushing big brands off the shelf, as artisan drinks brands continue to take market share from the global giants, said accountancy group, UHY Hacker Young.

There was a 25% increase in new distilleries in England over the last year, from 28 to a record 35, with UK sales of gin breaking though the £1bn mark for the first time in 2016. In Scotland, 12 distilleries opened in 2015, and a further 18 in 2016.

James Simmonds, of UHY Hacker Young, said: “Both the craft spirits and the craft brewery sectors are going through a period of explosive creativity.

“You can see that in everything from the logos, branding and advertising of these products. The quality of the product is streets ahead of their big brand competitors.

“It is no wonder that the global drinks giants are worried, and the best way they have found to deal with that new competition is get out chequebooks and buy them.”

The boom in the sector is also being fuelled by a flurry of merger and acquisition activity, as the global giants attempt to get in on the artisan market.

London gin maker Sipsmith was bought up last December by the Japanese giant Beam Suntory, which owns the Jim Beam, Teacher’s and Courvoisier brands.

Suntory, the world’s third-largest spirits company, is thought to have paid £50m for the Sipsmith brand, which was founded less than 10 years ago. The company’s founders, Sam Galsworthy, Fairfax Hall and Jared Brown, have stayed on to run the business.

Other deals last year included the Scottish-based Spencerfield Spirit Company, owner of the Edinburgh Gin brand, being snapped up by Ian Macleod Distillers, Scotland’s 10th largest whiskey producer.

Read More at source: The Guardian