Scottish craft brewery bucks industry gloom with £500,000 growth plan and new beers

The Clackmannanshire-based craft beer-maker said the initial stage of investment was underway at its Alva site, including new warehouse and office space, site improvements and continued upgrades to brewing infrastructure.

For the past decade, Harviestoun has rented warehouse space while also storing additional stock in external facilities in Glasgow. Bringing storage and logistics fully back onto the brewery site will improve efficiency and create the capacity for the firm to scale production for the next stage of its growth.

The investment, which is geared to improve operational efficiency and strengthen the brewer’s ability to deliver across retail, hospitality and international markets, comes amid a tough economic backdrop for the wider industry. It also follows a series of high-profile developments including BrewDog’s sale to private equity investors and Innis & Gunn entering administration before its brand was acquired by Tennent’s owner C&C Group.

Alongside strengthening its production capacity, Harviestoun plans to expand its product range with a series of new beers this year, including a pale ale, brown ale and nitro stout, as well as lower-alcohol and alcohol-free options launching ahead of the summer.

The brewery currently produces just under 10,000 hectolitres of beer annually, with plans to grow output towards 20,000 hectolitres over time as demand continues to grow for its portfolio. Annual turnover is projected to grow to £2.5 million this year and £3.1m next year.

Harviestoun is best known for its flagship craft lager, Schiehallion, which now accounts for around two-thirds of total production, alongside other well-known beers including Bitter & Twisted.

Chief executive Andrew McKnight said: “The investment is geared to supporting Harviestoun’s growth while bringing our operations fully back onto the site in Alva. We have invested steadily in our infrastructure over the past few years, upgrading brewing equipment and improving efficiency so that we have the foundations in place to grow the business in a sustainable way.”

He added: “The market is increasingly turning back towards classic styles such as lager and stout, but with a focus on quality. That plays to our strengths as a brewery with a strong heritage and well-established beers that continue to perform strongly with drinkers.

“Despite the challenging trading environment facing many breweries, we believe there are opportunities for independent producers with strong brands and disciplined operations.”

Across the UK there are an estimated 1,600 active breweries, although rising energy costs, inflation in raw materials and tightening margins have placed pressure on the sector in recent years.

At the same time, consolidation across the industry has seen beer brands change ownership, highlighting the challenges facing brewers navigating rising costs and evolving consumer habits, such as opting for lower or zero alcohol products.

McKnight added: “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.”

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