Alltech, a US-based distiller and animal nutrition group, is reviewing its brewery operations in Ireland as it looks to "increase efficiency".

In a statement to Just Drinks, the company confirmed it was reviewing the brewing operations of Alltech Beverage Division Ireland (ABDI), a unit which includes the Pearse Lyons Brewery in Dundalk. 

However, it said that no final decisions had been made regarding the facility or staff, as the company was “only in a consideration phase”.  

The review aims to “increase efficiency and focus on areas with the greatest opportunities for future growth", Alltech said.  

The Pearse Lyons Brewery in Dundalk, which opened in 2018 produces beer brands such as Foxes Rock for the local market. 

The opening of the brewery followed Alltech's acquisition of the Station Works Brewery in Newry in 2015, which was subsequently relocated to Dundalk.

The latest review is specific to Alltech's Irish brewery division and will not impact its Irish spirits business the Pearse Lyons Distillery, in Dublin, nor its US drinks operations in Kentucky, which include the Lexington Brewing & Distilling Company and Dueling Barrels Brewery & Distillery.

According to Alltech's website, the group also manages Cumberland Breweries in Great Corby, England.

The review comes at a challenging time for the craft beer sector both in Ireland and internationally. 

Bord Bia's Craft Beer and Cider Report 2023 highlighted that independent microbreweries held a small market share of 3.4% in 2022, with craft brewers booking a total turnover of €52m that year. 

According to the report, as of mid-2023, there were 79 microbreweries in Ireland, a number which has remained flat in the country since 2020.  

A total of 20 microbreweries entered the market between 2018 and 2023, while 16 exited.  

The UK industry has also faced difficulties. Figures from the Society of Independent Brewers (SIBA) published earlier this year showed that 13 breweries shut their doors between 1 January 2023 and the same date in 2024, with the total number of operating brewers standing at 1,815 as of 1 January this year.

Combining new brewery openings and closures, SIBA’s tracker booked a -2 net closure rate across the UK in the fourth-quarter period ended 31 December, and -13 year on year.