INNIS & Gunn has reported a loss of nearly £400,000 during a year which saw the brewer invest in staff, rebranding and the roll-out of its Beer Kitchen portfolio.
The Edinburgh-based firm opened its first Beer Kitchen in Glasgow in April last year – its biggest to date - following an investment worth £600,000, adding to existing outlets in Dundee and Edinburgh. Its outlet in St Andrews has now closed.
The expansion came in a year which saw the firm, founded by Dougal Sharp 15 years ago, sell a near-30% stake in the business to US private equity firm L Catterton for £15 million.
Writing in the accounts, Mr Sharp said the investment had provided Innis & Gunn with “rocket fuel growth capital”, as well as L Catterton’s “unparalleled expertise in brand building”.
READ MORE: Innis & Gunn eyes growth after private equity boost
Innis & Gunn reported a 22 per cent increase in to £22.4 million in 2017 as it sold more 100,000 hectolitres of beer. Mr Sharp said continued progress was made in the UK, where the firm has doubled in size over the last two years, and doubled revenue in the “exploding French craft beer market”. It began selling beer in China for the first time and maintained strong positions in Canada and Sweden.
However, the brewer made a loss of £377,000 after deciding to “invest for future growth”. It booked a £249,000 profit the year before.
Mr Sharp said: “This took the form of investing in our people, brewery, beers and bars to strengthen our brand and our key strategic pillars putting us in good stead for the future.”
The firm employed an average of 120 staff over the year, up from 95, while payroll costs rose to £4.5m from £3.7m. The overall remuneration of the highest-paid director rose to £184,000 from £164,000.
Innis & Gunn said yesterday that it has launched a limited edition beer, “15” to mark its 15th anniversary. It described the beer as a barrel-aged double IPA matured in selected barrels from the Highlands which had held whisky for 15 years.
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