Alvarez & Marsal delivers sale of Purity Brewing
Independent real ale brewery Purity Brewing has been bought out of administration by the Breal Group. The deal was overseen by administrators from Alvarez & Marsal.
Founded in 2005, Purity Brewing takes its name from its special wetland system, which naturally filters liquid waste back to the watercourse of its Warwickshire base. Over the last two decades, the brewer has become known for making products such as Mad Goose IPA, Longhorn IPA and Lawless Lager at its farm-based brewery.
The brewery’s parent company, Purecraft, also operates as a bar and kitchen in Birmingham. Over the years it has received backing from high-profile investors, including the Business Growth Fund (BGF) – but being encumbered with debt in the current financial climate does not seem to have helped operations.
With costs spiralling amid the UK’s huge inflation rates of the last two years, and with demand dropping thanks to the pressures that placed on consumers, the country’s craft brewing scene has endured a torrid time of late. Like a number of other breweries in 2023, this led Purity Brewing to enter into administration – citing the “pressure of rising costs”.
Mike Denny and Mark Firmin of professional services firm Alvarez & Marsal Europe were appointed as joint administrators to the company days before Christmas. Fortunately, the experts were able to secure an immediate deal with Breal Capital, to secure Purity Brewing’s future – securing 60 jobs in the region, just ahead of the festive season.
Denny, who is a managing director at Alvarez & Marsal, said, “Like many operators in the hospitality sector, Purity Brewing and Purecraft have endured tough market conditions. Most recently, the impact of significant cost inflation coupled with reduced discretionary spend has placed significant strain on the Companies. We’re pleased to have preserved the future of both businesses and the Purity brand by delivering the sale to Breal Capital, safeguarding all the firm’s local jobs.”
Headquartered in London, Breal Capital is an equity, lending and advisory services business. Its previous investments include D&D London and the Yorkshire-based Black Sheep Brewery.
"We all know the brewing industry has had a turbulent time of late, and like many others, the business has certainly felt the pressure of rising costs," said John Hunt, managing director at Purity Brewery. "However, we’re incredibly pleased Breal recognises the value and uniqueness of our offering and had the vision to invest in securing the future of the brewery."
