A Storm is brewing: Supply‑chain strain in the beer market

Brewing stress doesn’t stop at the brewery. The same pressures now run through raw‑material suppliers, packaging firms and logistics providers. Cost inflation, retro rebates, short‑dated stock claims, disrupted production runs and patchy credit control all translate directly into weaker debtor quality and faster‑moving dilution.

For ABL lenders, this matters. Many of these businesses look financeable on paper; strong plant & machinery, sizeable inventory, valuable container fleets, yet cash conversion breaks early. Ledger issues typically surface long before the balance sheet does.

That is why lenders are increasingly turning to independent specialists. Hilton‑Baird brings direct collateral audit, field review and collections experience in this sector, including a recent £40m ledger review for an ABL lender, and monitoring the recovery of a £5m debtor book after an initial credit‑control engagement pre‑administration.

The value lies in quantifying and testing the realities that borrowing bases depend on:

• how deductions, rebates and disputes flow through the ledger

• how quickly dilution builds in retail and wholesale channels

• how credit‑control weakness or buying‑group behaviours drive ageing

• where container leakage or stock quality issues create recoverability gaps

When paired with FRP’s restructuring work across the brewing value chain, this creates a complete picture: operational insight from Hilton‑Baird and restructuring credibility from FRP. Together they help lenders distinguish between asset strength that is real, and asset strength that unravels the moment trading becomes volatile.

Hilton‑Baird brings lenders the operational insight; collateral audit, field review, collections and real‑world ledger testing. FRP brings the restructuring and contingency expertise across brewing, hospitality and consumer sectors. Together, we give ABL lenders a full picture; what the assets look like, how the cash really behaves, and what happens if the situation turns flat. 

Contact me for more information here.