DRYGATE Brewing Company has revealed it is on track to turn over more than £700,000 in its first year of trading.

Scott Williams, the co-founder of Williams Bros who launched Drygate as a joint venture with Tennent Caledonian owner C&C Group, highlighted the progress as the company prepares to toast its first anniversary in April.

It came as Drygate, based next to Tennent's historic Wellpark Brewing in Glasgow's east end, grew its presence in the off-trade with a deal to supply a selection of its beers to Aldi.

The £13,000 contract will see Drygate distribute 12,000 bottled conditioned ales to the German discounter's 59 Scottish stores.

Aldi is already selling Drygate's Pale Duke Ale, which will be followed by the brewer's Chimera IPA/lager hybrid and red ale Reflex as guest ales in store later this year. The beers are the first to be made by the brewery's studio kit, where consumers can make their own beer.

Aldi is also piloting a range of the brewer's specialist ales in bottled conditioned format, which are packaged at Drygate in heavyweight returnable bottles. The discounter intends to trial six of the 20-strong range a year on a rotating basis.

The deal is the latest off-trade coup to be scored by Drygate, which ultimately anticipates that it could sell as much as 50 per cent of its output through specialist shops and supermarkets, outside exports.

Drygate's beers are already stocked by retailers such as Tesco and Scotmid, and talks with other stockists have taken place.

The brewer's sales effort in the off-trade is focused on a three-strong range - Outaspace apple ale, Gladeye IPA, and Bearface Lager - which are also available in kegs for independent pubs.

Mr Williams, who founded Alloa-based Williams Bros with brother Bruce in 1992, said he would be "disappointed" if Drygate did not turnover at least £700,000 in its maiden trading year.

Asked to describe the beer drinking public's response to the beers, he said: "It's been great, really good. The apple ale is one that kind of confuses people because it is so different. But it's very well received by people who are not classic real ale or IPA drinkers. They seem to really enjoy it which is good and, not to overuse the word, refreshing."

Away from beer, Drygate is building a strong reputation as a restaurant and events space. The venue, based in a former box factory which dates from the 1950s, hosted events during the recent Glasgow Film Festival and is now a fixture on the comedy circuit.

It was also recently granted permission to increase its capacity, allowing it host gigs for up to 350.

With its previous capacity standing at 150, Mr Williams said the increase allows it to "play in different sphere" in terms of live music.

But he said he is keen for Drygate to be known for the versatility of its events space, hosting weddings, private functions and comedy as well as gigs.

Asked to comment on how the partnership with C&C was working, he said: "C&C pretty much allow us to charge on and get in with it. They are very helpful in securing some routes to market. Engaging customers is a big thing. For the most part they see it as a separate business and don't direct it."

Richard Holloway, managing director for Aldi in Scotland, said: "This contract with Drygate is the latest example of our support for the brewing industry in Scotland.

"We have experience of working with some of the best breweries in the country so are confident that we will be able to maximise the popularity of Drygate's ales through our new guest ale of the month promotion in store."