Keystone Brewing eyes administration as ‘protective measure’

Keystone Brewing Group has filed a notice of intent to appoint FRP Advisory as administrators.

The Breal Capital-backed firm, which is behind craft beer brands Magic Rock and Fourpure, denied that it had entered administration, and said: “We’re still here. And we are fighting for the future of great beer!”

A keystone spokesperson told The Caterer that the notice of intent is “a protective measure that allows us to keep trading as normal while we secure new investment or explore a potential sale”.

“It gives us the breathing space we need to protect our people, our brands and our customers," the spokesperson added.

Keystone employs around 190 staff at its various brands’ breweries across the country. The business reported that all brewing sites, logistics and supply chain operations are continuing as normal, and orders are being fulfilled with minimal disruption to delivery schedules.

The company said it has put full contingency plans in place to minimise any disruption, including appropriate stock forecasting and “robust” customer service coverage.

A spokesperson said: “As we head into the festive season, our focus remains on what we do best which is making and supplying exceptional beer, cider and brands that people love.

“To our customers, partners and supporters we want to say, ‘Thank you for standing with us. Your continued loyalty means everything to our team, and together we’re determined to come through this stronger than ever’.”

CEO Steve Cox added: “This is a pivotal moment for our business but we are still brewing, still delivering, and we are here to stay. The decision to file a notice of intention to appoint administrators was not taken lightly, but it is a responsible and strategic move that allows us to assess the best way forward.

“The fundamentals of the business remain strong – our teams are committed, our brands are well loved and our operations are resilient. We are focused on emerging from this process stronger and more stable, ready to serve our customers for many years to come.”

The move to recapitalise or sell the business comes in the wake of a “perfect storm” of mounting costs and cautious consumer spending in the craft beer market, with 43 UK breweries became insolvent in the year to end February 2025, according to accountancy group UHY Hacker Young.

At the beginning of 2025, Keystone itself stepped in to save Magic Rock and Fourpure after their holding company, In Good Company Brewing, fell into financial difficulties.

The beers joined Keystone’s portfolio of brands including Maison Sassy, Big Drop Brewing Co and BBNo. The company also began an exclusive UK sales and distribution partnership with Bavarian lager Hofmeister earlier this year.

Keystone’s owner Breal acquired Purity Brewing Company and Pure Craft Bars out of administration in January 2024, saving all 60 staff jobs in the process.

The London-based firm bought Yorkshire’s Black Sheep Brewery in May 2023, as well as London craft brewers Brick Brewery, Brew by Numbers and wine bar Vinoteca in August.

Breal also acquired D&D London in October 2023 with private investment company Calveton in a deal that reportedly valued the restaurant group at around £60m, including debt.