SCOTLAND’S ‘mad scientists of craft beer’ are bucking the trend of falling beer sales having secured a bumper order from supermarket giant Tesco.
Vault City Brewing’s 4-pack 330ml cans of their Strawberry and Peach release are now available in 650 Tesco stores across the UK, helping the firm pass £3m turnover for the first time – an almost 50% increase YoY.
Tesco’s commitment demonstrates consumer demand for sour beer remains strong, despite reports beer sales are set to decline in 2023. In February, global brewing behemoth Carlsberg sounded the alarm by predicting ‘another challenging year’ for the industry over fears higher prices and inflation will see customer spend on beer go flat.
Yet, despite the understandable cause for concern, Vault City Brewing founder Steven Smith-Hay has optimism for the next 12 months, fuelled by supermarkets’ desire to diversify their alcohol range and interest from overseas. He said: “As a small, independent craft brewer, we’re so proud to see our product stocked on the shelves in so many different Tesco supermarkets up and down the UK.
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“We’re still a small team and it gives all of us so much faith in our product and all the hard work we put in to have landed such a significant deal.
“Tesco’s investment in our Strawberry and Peach sour beer proves the appetite for craft beer across the country continues to grow. This is a huge opportunity to get Vault City into the hands of lots more people.
“The news last year following the mini budget did not paint a pretty picture for beer sales in 2023, and like most breweries we found ourselves preparing for the worst. There have been changes in consumer behaviour following the budget and the subsequent cost of living crisis. Many people have switched to more sessionable, lower ABV beers – often looking for something reliable as opposed to taking a chance on lots of different, new beers. That’s what prompted us to create a 4-pack, and to introduce our first 330ml cans on the shelves in the UK. It has the same Vault City quality people can rely on, but at a more affordable price point.”
The positive outlook for the year ahead also appears to vindicate Vault City’s shift to a four-day working week. The Edinburgh beer producers made national headlines after becoming the first brewer in the UK to formally adopt a four-day working week in January last year. A reduction in working hours by 20% has coincided with business growth of approximately 50%, as well as improved staff productivity, mental health and overall happiness.
Steven said: “Obviously decreasing work hours is a huge commitment for a small business to make, however we’ve always believed work-life balance should be a big part of our culture and something worth striving for.
“After successful trials, we made the permanent switch at the start of last year and the feedback has been overwhelmingly positive. More staff are able to spend time with their families, switch off and prevent burnout.
“Many studies have shown switching to a four-day week actually improves productivity and despite the decrease in hours from 40 to 35, we can confidently say the team feels more motivated during those four days, knowing that they have three days to live their lives outside of work and recharge their batteries.
“The last 12 months has been a significant period of growth for the business and we firmly believe the four-day workweek played a huge part in that.”
Steven, aged 32, started brewing sour beer from his home as a hobby before launching Vault City in 2018.
The business, which specialises in heavily fruited, modern sour beers – with flavours such as Mango Banana Coconut Crumble, Iron Brew and Raspberry Roulade – has since become one of the UK’s best-selling sour beer brands and the biggest in Scotland.
The firm’s turnover now exceeds £3.1million, allowing for significant funds to be used towards growth: its fermentation capacity from 26,000L to 105,000L with the addition of ten new tanks, while its team of 19 people is expected to grow to more than 25 this year.
The brewer launched its first core range in May – listed by close to 200 independent bars and pubs across the UK – and after a successful crowdfunding campaign, they launched the Porty Vault Taproom and Smokehouse in Portobello, complementing their Wee Vault Tasting Room and Bottle Shop in Haymarket. Its beers are also available nationwide in Morrisons, with other major retailers already in the pipeline.
Yet the brewer’s ambition isn’t just confined to the UK. Vault City consistently sells to over 15 countries across the globe and the export market represents another attractive avenue for growth in 2023.
Steven said: “We already export to the likes of Norway, Denmark and Singapore and Thailand.
“I remember when I was just brewing beer for my family and friends as a side project, Time Magazine proclaimed ‘sour beer is the hottest cold drink’ of 2017. The thirst for it hasn’t really slowed down since then and every year enthusiasm for sour beer is emerging in new, untapped markets.
“As well as the export trade being good for business – it now represents roughly 20 percent of our total sales – we’re still at the stage where we get ‘pinch ourselves’ moments thinking of Vault City cans travelling across the world, appearing in shops and bars in different countries and being enjoyed by sour beer fans. The global appetite for sour beer is there, and we believe there’s a global appetite for Vault City beers too.”
Vault City’s Strawberry and Peach sour beer is now available as a 4-pack at Tesco. To learn more about Vault City Brewing, and to explore their extensive range of modern sour beers, visit vaultcity.co.uk.
