Award-winning independent Scottish craft brewer Harviestoun is scaling for growth with the first phase of a strategic investment programme underway at its Alva brewery, including new warehouse and office space, site improvements and continued upgrades to brewing infrastructure.
Harviestoun Brewery, based in Alva, Clackmannanshire, has invested more than £500,000 in this initial expansion phase, which will deliver a new 600 sq. ft warehouse facility and additional office space. 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 Harviestoun to scale production for the next stage of the company’s growth.
This initial investment, which is geared to improve operational efficiency and strengthen the brewer’s ability to deliver across retail, hospitality and international markets, comes at a challenging time for Scotland’s brewing sector, following 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 drinks group C&C.
Alongside strengthening its production capacity, the brewery plans to expand its product range with more than five 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.
Harviestoun 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. The brewery’s annual turnover currently stands at £2.2 million, with forecasts projecting £2.5 million this year and £3.1 million 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 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. 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 that while overall beer consumption in the UK has stabilised in recent years, consumer preferences are shifting towards premium beers and well-crafted traditional styles, including lagers, pale ales and stouts.
“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 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.
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.
Harviestoun remains independently owned and brewed in Scotland, allowing the company to take a long-term view of the business. Looking ahead, the brewery is also exploring opportunities within the hospitality sector
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In conclusion, Andrew said:
“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.”
Construction on the new warehouse facility is already underway and expected to be completed by the end of the month, with the project being delivered by Borders-based contractor Thorburn Group. For more information, visit www. https://harviestoun.com
