Lerwick Brewery, the UK’s most northerly brewery, is targeting major expansion, with plans to increase its mainland UK sales by 500% within the next three years.
An ambitious growth strategy will see the craft brewery launch a robust marketing campaign and seek prominent listings in major UK supermarkets, capitalising on a burgeoning interest in Shetland and its unique craft beers.
Despite operating in a crowded craft beer market that was badly impacted by successive pandemic lockdowns, the company is confident of meeting its target of reaching £1million in sales by 2027.
Located in the islands’ capital, Lerwick Brewery has become a celebrated destination in itself, with brewery tour attendance doubling in the past year.
Growth fuelled by tourism boom and TV series popularity
This success mirrors the growth of Shetland’s tourism sector, with visitor spend reaching £35.8million in 2022 — up from £16.2million in 2013. One of the contributing factors to the tourism boom is the popularity of the BBC’s Shetland drama series.
The growth has been fuelled by a rise in cruise ship arrivals and the allure of the islands’ stunning scenery, rich history, and unique culture.
This influx of tourists has provided a strong foundation for Lerwick Brewery’s existing success, with 86% of its 2022 sales originating from Shetland.
The brewery is now poised to leverage this momentum and tap into the vast potential of the UK mainland market.
Iconic, award-winning range of beers
Founded in 2012 by three brothers, Lerwick Brewery’s initial product – its iconic 60°north Shetland lager – quickly established a loyal following and, last month, it was nominated as Beer & Cider Product of the Year at the prestigious Scottish Food & Drink Excellence Awards.
Named after Shetland’s northerly latitude—shared with Finland and Alaska – the lager reflects the brewery’s unique location and the blend of Scottish and Nordic influences that inform its distinct brand identity.
The brewery’s range has since expanded to include a variety of award-winning craft beers, including Lerwick IPA, Tushkar oatmeal stout, Skipper’s Ticket Shetland bitter, and Hamefarin pale ale.
Those beers are currently sold in bottles and cans for the off-sales market, with 60°north Shetland lager, Lerwick IPA, and Hamefarin also available on draught to bars and hotels in Shetland.
Head brewer Jonny Sandison said. “The success we have achieved so far has been pleasing, but we feel we are only scratching the surface.
“First and foremost, we make high quality beers and so and we were always confident that they would find a market.
“We are proud of our roots in Shetland, which has grown in popularity in recent years with a lot of attention now focused on the islands as a result of the popular BBC series.
“With visitors from all over the world, the Shetland brand has never been stronger and we believe there’s a huge appetite for products related to the islands, including our beers.”
Seeking partnerships with UK supermarkets
The company is actively pursuing partnerships with major UK supermarket chains. The initial focus will be on securing listings in Scotland, before expanding further south. The brewery will be offering its full range in cans, allowing for ease of distribution, and appealing to a broader consumer base.
Recognising the need to resonate with a mainland audience, the company is also embarking on a brand repositioning exercise, while implementing a multi-faceted marketing campaign combining consumer-facing PR, social media engagement, and targeted advertising.
Managing director Graham Mercer said: “While retaining our core values of Shetland life, community, and creativity, the branding will be refined to appeal to a younger, trend-conscious demographic – primarily male, craft beer enthusiasts and those with a taste for adventure.”
“The new brand identity will emphasise the ‘windswept wild’ aesthetic of Shetland, aligning with current craft beer trends and the evocative imagery associated with the popular Shetland TV series, which has significantly heightened mainland awareness of the islands.”
He added: “Storytelling will be central to the campaign, highlighting the brewery’s unique Shetland heritage, its passionate team, and its commitment to quality and innovation.”
Enhanced online offering
The brewery is also aiming to enhance its online shop, making its products easier to buy by mainland customers.
Mercer said: “Prior to the pandemic, the online shop experienced significant growth, with sales increasing by more than 500%, between 2019 and 2021. This demonstrates the potential for online sales to contribute significantly to the brewery’s overall growth.
“We are confident that our unique story, combined with our high-quality products and strategic marketing, will drive substantial growth on the mainland among craft beer lovers.”
