Brewer plans further expansion
Innis & Gunn to double in size after output record
Brewer Innis & Gunn broke its own production record for a 13th consecutive year and said it aims to double in size over the next two years.
The Edinburgh-based company added the Inveralmond brewery in Perth, and integrated its brands into the portfolio.
It signed distribution deals in France, China, Hong Kong and Taiwan, opened two Beer Kitchens, and launched an oversubscribed share issue through a crowdfunding campaign which raised £2.4 million.
The new capital will be invested in beer production and to open Beer Kitchens. The company is in advanced negotiations over sites in the UK and overseas.
Tony Hunt, chairman, said: “2016 was an outstanding year for Innis & Gunn and the start of a planned transformation of our business.
“We acquired our first-ever brewery, opened new Beer Kitchens, launched some delicious new beers, achieved record sales volumes and won our 46th award for quality since 2009.
“To top it off, through our crowdfunding we brought nearly 2,000 new shareholders into the Innis & Gunn community. Most important of all, we laid the foundations from which we plan to double the size of this business over the next two years.
“Around the world, the opportunity is huge as increasing numbers of consumers develop a taste for authentic craft beer, and thanks to Dougal Gunn Sharp and our highly talented brewing team Innis & Gunn is ideally placed to benefit from that trend.”
Annual group turnover leapt by 22% to more than £14.3m in 2016 against £11.8m in 2015.
Gross profit rose 25% to £8.5m from £6.8m. No figure was announced for pre-tax profit.
Sales volume passed 2.2 million cases for the first time, the 13th consecutive year of volume growth which means that over the last five years volume has increased by 175% This includes sales of the Inveralmond Brewery brands.
Innis & Gunn is on track to reach its publicly stated goal of £25m in turnover by 2018. The brewer also plans to treble its beer production over the next 12 months at its Perth brewery.
Canada continues to be the largest export market, delivering just over a fifth of total volume for the business. Almost 600,000 bottles of Innis & Gunn beer were sold in the first year of the new joint-venture with SIP Drinks in France, and volume is expected to double in this market in the next 12 months.
In the UK, an exceptionally strong performance for Innis & Gunn Lager has seen sales almost quadruple over the last two years.
Two Beer Kitchens in Dundee and St. Andrews were added. The first opened up in Edinburgh in 2015. A fourth has been added in Glasgow’s West End, its largest site to date.