Wooha, the artisan craft brewer based in Moray, has gone into administration with the loss of 12 jobs.
Joint administrators Iain Fraser and Tom MacLennan of FRP said the company, which operates from a 16,000sq-ft purpose-built facility in Kinloss, ran into unsustainable cash flow problems caused by the rapid contraction of the global hospitality and licensed trade industry. It was also hampered by the costs for exporters arising from Brexit.
Twelve members of staff have been made redundant with immediate effect, while two have been retained to assist with the administration process. Administrators are hoping to sell the business and its assets, either in whole or in part, "as quickly as possible".
READ MORE: Craft brewer WooHa smashes £600,000 fund target
“Wooha Brewing Company is a high-profile craft brewing business with a substantial and growing trade and consumer client base," Mr Fraser said. "The business had grown rapidly in recent years, was well financed, and had a clear strategy and positioning in a crowded market.
"The business has unfortunately been severely affected by a combination of Covid, the contraction of its main markets and the bureaucracy of Brexit. Despite every effort by the directors to keep the business trading and ensure the company would be able to capitalise on the recovery when it comes, the severe financial problems meant that administration was the only option."
Founded in 2015 by Heather McDonald, the company had raised £2.3 million since its inception from private investors, including a high-profile crowd-funding campaign. The crowdfunding campaign, launched in January 2020, broke its £600,000 fundraising target in just 19 days.
Wooha Brewing had built a substantial export business for its range of craft beers and regular seasonal releases, includng brands such as "Roch N’ Roll’" "Hop Stampede" and "Jenny from the Bock". It had trade partnerships in markets including China, Russia, the USA, Italy, Finland and Israel.
More recently, the company had focused on expanding its domestic business in both the trade and online channels, securing agreements with leading brands such as Wetherspoons, Ocado and Amazon Prime, while also growing direct-to-consumer sales from its own website.
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