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BrewDog predicts turnover to double to £12m

FAST-GROWING craft beer firm BrewDog is predicting its turnover will double to £12 million this year through a growth in sales at home and abroad.

CRAFT: BrewDog has opened seven bars in the UK, including one in Edinburgh's Cowgate. Picture: Julie Howden
CRAFT: BrewDog has opened seven bars in the UK, including one in Edinburgh's Cowgate. Picture: Julie Howden

The brewer is also planning on opening a further three bars, bringing its total estate across the UK to 10.

Alongside that, it hopes to have its new £8m low-carbon brewery at Balmacassie, near Ellon, Aberdeenshire, operational later this summer. The new facility will give BrewDog around 10 times the capacity it has at present.

Earlier this year, BrewDog raised more than £2m through an online share issue available to members of the public to help fund the brewery and expand the number of bars it runs.

The new brewing facilities will help it cope with demand from customers in 27 countries and push sales up to record levels.

In the UK BrewDog has deals in place with UK supermarkets such as Asda, Sainsbury's, Morrisons and Tesco.

Abroad, it is stocked in outlets such as Dutch supermarket Albert Heijn, Coop-Denmark, Australian retailer Dan Murphy, the Ax-foods chain in Sweden, and Norway's Rema 1000.

The expansion is expected to add around 40 staff over the next three months with roles available in brewing, packaging, logistics, human resources, marketing and bar management.

The company said it also intends to run its first graduate training scheme, which will take on two people.

James Watt, who co-founded the business with school friend Martin Dickie five years ago, said: "The economic crisis has been our biggest catalyst for success.

"This is an environment for the innovators, for the misfits and the mavericks.

"We can see the empires of old crumbling, and the winners will be the people with the passion and commitment to make great products and make their companies work no matter what."

The brewery and bottling line, which could eventually employ 75 people, will have a footprint of 3000 square metres. However, the company owns a 3.6 acre site, enabling further expansion if necessary.

It will have an initial capacity of 100,000 hectolitres although that can be increased to 500,000.

According to annual accounts for 2011, BrewDog employed 61 people and had a turnover greater than £5.9m.

More than 50% of BrewDog's sales last year came from the UK, with £1.4m in Europe, £295,679 in the United States and £706,067 from the rest of the world.

BrewDog has opened bars in Edinburgh, Glasgow, Aberdeen, Camden, Newcastle, Manchester and Nottingham, with Birmingham, Bristol and Leeds identified as the next locations.

At least 19 jobs will be created in the bar operation, which sells craft beers from around the world, through the new openings and BrewDog is still recruiting for its existing sites.

The company also intends to move its head office operations to the new brewery.

The development was initially slated to be built at Potterton, a village north of Aberdeen, but the £2.5m cost to get water, gas and electricity meant a rethink.

Instead, that site will be used to grow barley and fruit which will go into the beers.

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