TENNENT Caledonian is launching a £58,000 fund to invest in new brewing and farming projects in Scotland.

The brewer pledged to put five pence from each pint of Caledonia Best it sold during the first six months the product was on offer into the fund.

With more than 1.1 million pints of the 3.2% draught ale being swallowed across Scotland between the end of October last year and April, that meant the company has a five-figure sum to distribute via the Caledonia Best Seed Fund, which is being formally launched at the Royal Highland Show this week.

Grants of various sizes will be available to projects across Scotland. Successful applicants will also receive mentoring and work placements with Tennent Caledonian plus its partners from the National Farmers Union of Scotland (NFUS) and the Heriot Watt International Centre for Brewing and Distilling (ICBD).

Projects must not have existing backing but could range from a training programme to a new micro-brewery or farming specialism.

Tennent Caledonian commercial managing director Steve Annand said: "The product has its roots in Scottish farming and brewing and we wanted to reflect that in the money we are distributing. We are interested in new ideas and innovation in brewing and farming.

"We have an open mind on the size of the awards we will make.

"I suppose we expect to make a number of grants but that is not to say there won't be some larger awards if applications merit it.

"It is a great way of encouraging innovation in the industry and getting projects off the ground that would not have otherwise got the opportunity.

"If it is difficult for established businesses to get funding, so it is good to be able to offer something to start-ups and entrepreneurs.

"Our brewing and technical teams at Wellpark are excited about the prospect of working with new people."

The closing date for applications is August 3 and a panel of representatives will then assess each project.

Mr Annand hopes to begin placing grants in the autumn and has not ruled out looking at other funding schemes.

He said: "We really launched the seed fund as part of the promotional push for the new product and we will review how successful it is, based on how the applications go."

Caledonia Best was launched in October last year and is brewed at Glasgow's Wellpark Brewery.

It contains 100% Scottish barley with the company planning to roll that out across the Tennent's range.

Mr Annand explained: "Caledonia Best continues to sell well. We have just done our 1000th install in a pub in Scotland.

"It was also launched in cans to the convenience sector in May.

"We are on course to use 100% of Scottish barley in our products by the end of this year and are talking to our suppliers about that."

Tennent Caledonian is a subsidiary of the Dublin-based Magners owner C&C Group.