In a significant development for the UK's brewing industry, the prominent Keystone Brewery Group has been successfully rescued from administration through a substantial £6.5 million acquisition deal. The rescue operation was executed by the newly-established Great British Drinks Company, securing the future of the business and its workforce.
Preserving Heritage and Employment
The acquisition ensures the preservation of approximately 145 jobs across Keystone's operations, with all three of its existing brewery sites set to be maintained and revitalised under the new ownership. Keystone Brewery Group, which employs roughly 190 staff nationwide, is responsible for several well-known beer brands that hold considerable heritage within British brewing culture.
Iconic Brands Secured
Among the portfolio saved are the celebrated Black Sheep, Purity and Hofmeister beer brands. Black Sheep Brewery holds particular historical significance, having been founded in 1992 by Paul Theakston, a direct member of the renowned Theakston brewing family. These brands represent some of the most recognisable names in the UK beer market, making their preservation crucial for maintaining diversity in the sector.
Avoiding Administration
Keystone had been facing considerable financial challenges, making multiple attempts to avoid administration in recent months. According to reports, the struggling company filed a second notice of intention to appoint administrators in January 2026, following an initial filing in November 2025. Such notices provide temporary protection against immediate liquidation, allowing businesses breathing space to restructure or find buyers.
The company had appointed FRP Advisory to help steer the business back to stability, with industry veteran Steve Cox joining Keystone last year with an ambitious brief to achieve £100 million in annual sales by 2028. The rescue deal arrives at a critical juncture for the brewing industry, with increases in alcohol duty scheduled for implementation next month.
Broader Industry Challenges
The rescue occurs against a backdrop of significant challenges facing the UK's pub and brewing sectors. Pubs throughout Britain have encountered substantial financial pressures due to rising operational expenses, with official data revealing that 209 pubs were either demolished or converted for alternative uses during the first half of 2025 alone – equivalent to approximately eight closures each week.
Publicans and industry representatives have repeatedly urged the government to implement reforms to business rates and beer duty structures to provide relief to struggling establishments. The timing of the Keystone rescue, just before scheduled duty increases, highlights the precarious financial environment in which brewing companies are currently operating.
The successful acquisition by Great British Drinks Company represents not just a corporate rescue but the preservation of brewing heritage, employment opportunities, and consumer choice in a market facing considerable headwinds. The deal ensures that these iconic British beer brands will continue to be produced and enjoyed by consumers across the nation.
