Adam Hardie, head of food and drink at Johnston Carmichael, explains why collaboration is key to the success of Scotland's craft brewing sector.

Scotland's craft brewing sector is thriving once again. We now have over 70 craft brewers across the nation, reminiscent of the halcyon days of the early 20th century when Edinburgh alone had more than 35 operating breweries - including  famous names such as Youngers, McEwans, Campbell, Hope & King - many of which were exporting their beers around the world.

New brewers such as Stewart's, Knops and Barney's are now establishing themselves in the capital. In other parts of Scotland award-winning businesses such as Traditional Scottish Ales, Fyne and Broughton Ales are also emerging as ones to watch. Meanwhile Aberdeen-based BrewDog has become a significant player in the sector, opening its own pubs, and building a UK-wide and international following.

Craft brewing emerged in the late 70's in the US in response to market saturation of mass produced generic tasting beer and has grown as drinkers across the globe have become more discerning, willing to try new brands and styles. According to the Brewers Association, craft brewers currently provide an estimated 108,440 jobs in the US with the industry generating financial growth of 17% in 2012.

Here in the UK, despite an overall decline in beer consumption, the craft brewing sector has enjoyed compound growth of 12% over the last five years and is now at a similar level to that in the US. There has also been a revival of real or cask ale as consumers have strived for variety, provenance and quality.

This sector growth offers a great opportunity for the Scottish economy where craft brewers benefit from the high levels of industry knowledge and expertise available north of the border. While the industry giant Scottish & Newcastle, previously headquartered in Edinburgh, may have been acquired jointly by Heineken and Carlsberg in 2008, many of the talented and experienced people that helped grow that organsiation are still in Edinburgh and keen to invest their time and money backing appropriate new ventures.

As business advisers, we have seen a significant upturn of activity within this sector with an increasing number of breweries seeking assistance on bank funding, capital investment and other means to help them grow their businesses. One of the key themes emerging in my own dealings with Scotland's craft brewers is the need for greater collaboration to help them succeed. Most craft brewers do not have the critical mass to take on the industry giants but by working together they can achieve more. Better collaboration across distribution and sales operations is a key aspect to overcoming the challenges which many within the sector are faced with.

Firstly, distribution is a significant cost for all brewers, including the increasing logistical struggle of returning casks from various destinations across the UK. Each year the industry loses many millions of pounds through the theft and misappropriation of kegs and casks.

An innovative Cumbernauld based business which is helping to address these issues, the Food & Drink Hub (Scotland) Ltd was set up 18 months ago to create an affordable and effective route to market for craft brewers as well as other SME food and drink companies. The Hub's innovative service and approach incorporates storage, consolidation of different products and distribution offering a viable means of delivering smaller quantities into various types of outlets. This helps craft brewers throughout Scotland ensure their products are consistently available and enhances potential sales opportunities through collaboration.

Further collaboration through the formation of buying groups can also help by enabling lower costs on key overheads such as raw materials and utilities. This can be a challenge for many brewers which have long established relationships with their suppliers and tend to be less enthusiastic to engage in this type of activity. However, by working together in this area, craft brewers have real scope to increase UK and overseas sales.

Great examples of effective collaboration are beginning to emerge. Following a recent event hosted through our firm, there are plans for up to 10 micro breweries to attend the next Craft Beer Rising event in London under a Scottish banner. There they will have access to over 700 UK buyers including on-trade small independent operators, national pub and bar chains, off-licenses, UK multiples and a number of licensed cafes and deli owners.

While previous discussions about industry collaboration may have struggled, an informal alliance of Scottish craft brewers has been formed which is a positive development with the potential to help move the sector forward. What is needed now are some public resources to give this group a stronger voice, with coordination and leadership coming from the industry body Scotland Food and Drink.

The Scottish Government has recognised the potential of the independent brewery sector, referring to it as a 'rising star' within the wider food and drink industry with significant opportunity for expansion in the UK and overseas.  Further Government support through extra resources and creative funding for growth initiatives could really help Scottish craft beer become one of the next major economic success stories.