Black Sheep brewery up for sale in move to secure fresh funding

Black Sheep is considering a sale of the business after appointing financial advisers to help it navigate choppy economic waters.

The North Yorkshire independent brewer has launched a strategic review after flagging the ‘after-effects of Covid-19’ on pubs and the impact of the cost of living crisis on consumers’ spending.

Breweries have struggled since the pandemic struck and pubs were forced to close in lockdowns.

The sale of Black Sheep would mark a significant setback for the industry. 

The company was set up in 1992 by Paul Theakston to ‘champion independent brewing in Yorkshire’ after his family business T&R Theakston was bought out by a larger brewer. 

Theakston describes himself as the Black Sheep after leaving the family business and building his own site in Masham, the same town where five generations of Theakstons brewed beer before the sale.

Its beers – including its flagship Black Sheep Ale and Cry Wolf IPA – are sold in pubs and supermarkets across the UK.

Black Sheep told investors yesterday its ambitious growth plans were being held back by a ‘significant constraint’ on funding amid ‘prevailing economic conditions’.

Experts at management consultants Teneo will help the board look at options, including a merger or acquisition ‘in whole or in part’.

But a sale is not guaranteed, with Black Sheep stressing it would only opt for one if it would create a ‘stable base’ for the future.

In its 2022 annual report, Black Sheep lamented the industry’s slow recovery after Covid and said breweries would continue to be economically affected ‘for some time’.