SINGAPORE: Regional craft beer beer Archipelago has fallen prey to what some critics are calling the “beerpocalypse”. It was announced in June that the company, owned by Asia Pacific Breweries ( APB) Singapore, will begin operations at the end of the month.
For art beer producers around the world, these are trying days. In 2023, a remarkable 418 breweries in the United States were shuttered, while in Britain, 52 declared debts.
Established in 1933, Archipelago is Singapore’s next- oldest beer, formerly situated near Alexandra Brickworks. After languishing for many years, APB’s create making division, Archipelago, received a new lease of life in 2006. APB produces beverages like Tiger, Anchor, and the regionally licensed type of Heineken.
Heineken, the owner of APB, has decided to stop operating the handmade brewery after 18 years, citing a need to simplify their portfolio in the wake of “declining craft beer market realities and higher operating costs.”
These pressures include the toll caused by conflict in Eastern Europe, which has previously produced a significant amount of wheat and barley, which are essential ingredients for beer, as well as inflation, which has increased the cost of everything from ingredients to shipping.
Manufacturers who have borrowed money to finance their business or buy property are also impacted by rising interest rates, while decreasing requirement and cost-of-living pressures are also a factor. People are simply going to the bar less, and with less discretionary spending, they may find mainstream beer at S$ 15 ( US$ 11.10 per six-pack ) more appealing than niche ales that cost S$ 15 or more.