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.

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.

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.

BrewDog creditors left out of pocket

Newly-released documents confirm that BrewDog owed creditors £553.8m at the point of its sale, leaving an estimated £480m black hole after its pre-pack rescue deal.

Its small investors will receive no repayment while secured creditors owed nearly £400m are likely to get less than one penny in the pound, according to documents filed by administrator AlixPartners.

HMRC and HSBC, Brewdog’s main banker, are the only creditors likely to see money returned, though the bank is likely to get back only about half of its £61m loan. HMRC’s £6.5m return, largely from unpaid VAT, national insurance and PAYE, is likely to be repaid in full.

TSG, the US private equity group that paid £213m for a 22% stake in Brewdog in 2017, has lost its entire investment. It is also likely to lose £27.6m of loans as well as £71m of loan notes.

More than £13m in Covid loans will be written off, while trade creditors include Ardagh Metal Packaging Trading, which is owed £3m, wholesale food supplier Brake Bros (£2m), and the logistics firm ARR Craib Transport (£1.6m). Others waiting for payment are West Ham United Football Club and Marylebone Cricket Club, which operates Lord’s Cricket Ground.

The revelations come as the company faced a fresh backlash over claims the new owner of BrewDog is attempting to rehire former staff on new terms after the collapse – a move unions have branded “morally reprehensible”.

Former employees at BrewDog’s bars were contacted and encouraged to reapply for their jobs following the takeover. The union has called for them to be re-employed on the same terms and conditions.