Wholesaler links up with craft brewers in Asia export venture

The wholesaler's new export arm, JW Filshill International Ltd, trades as The Craft Beer Clan of Scotland, and sees big potential from consumers in Asia-Pacific markets who already buy Scotch whisky.

The new venture has been supported by the taxpayer-backed Scottish Development International and Scotland Food & Drink, and is already working with four craft beer makers, William Bros Brewing Company of Alloa, Eden Brewery of St Andrews, Perth-based Inveralmond Brewery, and the Deeside Brewery in Banchory. Other craft brewers have expressed an interest.

Simon Hannah, who is managing director of Glasgow-based food and drink wholesaler Filshill, said yesterday that it was targeting a £2.5 million turnover from exports of beer by the new company in this international arm's fifth year of operation.

He anticipates that the company's total turnover in its first five years of operation, from exports of beer, will be £6.65m.

Mr Hannah, chief executive of The Craft Beer Clan of Scotland and a member of the family which owns Filshill, said the wholesaler was the majority shareholder of the new company. He added that Mr Moore, Mr Miller and whisky writer Charles MacLean, who Filshill noted was well-known and well-connected in Asia, were among those with minority equity stakes in the business.

Filshill noted that The Craft Beer Clan of Scotland had already completed a successful trade mission to Asia, attending WhiskyL drinks industry events in the Chinese cities of Beijing and Shanghai in August. This trade mission also took in events in the Taiwanese city of Taipei and in the South Korean capital of Seoul.

Mr Hannah, who highlighted the large amount of knowledge of Scotland in Asian markets as a result of the success of Scotch whisky, said: "The first container from these [participating] craft brewers was launched at WhiskyL and repeat orders are now being processed for China."

He added: "Filshill International is currently working on initial shipments for both Korea and Taiwan following successful presentations to key importers and, since returning from Asia, Chris Miller has been approached by several other craft brewers who wish to participate in this export portal."

Mr Hannah noted some craft beer players, such as Innis & Gunn and Brewdog, had the resources to fulfil their international commitments themselves.

He said that Filshill was looking to help willing brewers which were eyeing export markets but were principally focused on making the best beer and wished to have external sales and marketing functions.

Mr Hannah added: "There are 76 craft breweries in Scotland. It is just about finding willing partners."

Asked when the new venture would be profitable, Mr Hannah replied: "None of these things can be profitable from the outset because we have high costs to set up. We see the potential from this.

"We wouldn't be committing ourselves to this if we didn't think it was going to be generating profit further down the line."

He cited potential for Filshill, which employs about 200 people, to form similar partnerships with Scottish gin and food producers which were looking to target export markets.

Commenting on what The Craft Beer Clan of Scotland could offer breweries, he said: "They are not dealing with people they don't know on the other side of the world."

Highlighting the value of the Scottish brand, he added: "Scotland has a high equity value because of the runway that has been created by whisky."

Mr Hannah said Mr Miller was also in talks with contacts in other key export markets including North America, Canada, Scandinavia, Italy, Japan and Australia.