Harvieston to open pubs as it defies beer setbacks – Daily Business
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Andrew McKnight: opportunities
Independent Scottish craft brewer Harviestoun is investing in expansion and is looking to open its first pubs and hotels as it combats challenges in the sector that have seen a number of rivals collapse.
Harviestoun has committed more than £500,000 into a new warehouse facility and additional offices at its Alva brewery to replace rented space in Glasgow.
It is best known for its flagship craft lager Schiehallion, which accounts for around two-thirds of production, alongside Bitter & Twisted and speciality beers such as Ola Dubh, a rich stout matured in Highland Park whisky casks
Andrew McKnight, CEO of Harviestoun, said the investment reflects a long-term strategy focused on sustainable growth. “The investment is geared to supporting Harviestoun’s growth while bringing our operations fully back onto the site in Alva.
“Despite the challenging trading environment facing many breweries, we believe there are opportunities for independent producers with strong brands and disciplined operations.
“We have already started looking at potential properties including pubs and hotels for the next stage of our growth and will continue to review opportunities until the right ones present themselves.
“Operating venues would create opportunities to showcase our beers directly and build stronger relationships with customers.”
He added that consumer preferences are shifting towards premium beers and well-crafted traditional styles, including lagers, pale ales and stouts.
Aside from boosting production capacity, Harviestoun will introduce at least five new beers this year, including a pale ale, brown ale and nitro stout, as well as lower-alcohol and alcohol-free options.
It plans eventually to double current production of just under 10,000 hectolitres of beer a year. Turnover is forecast to rise from £2.2 million to £2.5m this year and £3.1m next year.
The investment comes at a challenging time for Scotland’s brewing sector, following a series of high-profile failures.
BrewDog was sold to US drinks, packaging and medicinal cannabis company Tilray Brands, and Innis & Gunn entered administration before its brand was acquired by Irish group C&C, owner of Tennent’s.
Across the UK there are around 1,600 active breweries, although rising energy costs, inflation in raw materials and tightening margins have placed pressure on the sector in recent years.
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