By Scott Wright

TWO Scottish craft brewers have merged in a deal expected to drive growth of their respective brands at home and abroad, with plans in place for further investment in their respective brewing sites.

The boards of Borders-based Broughton Ales and Consolidated Craft Breweries, which owns the Spey Valley and Alechemy breweries, have agreed to formally combine under an agreement that takes effect this month.

The merger brings together Broughton brands, including the award-winning Old Jock Ale, with Spey Valley’s 1814 Lager and Alechemy’s Talisman, which between them are sold in the domestic supermarket sector and on-trade, and in export markets.

Investment is now planned for the three breweries owned by the combined entity, following backing from Scottish Enterprise and existing shareholders, as the company looks to meet growing demand at home and internationally for premium craft beers.

It is expected that the merger will build on the strength of CCB’s position in the export and domestic on-trade, and Broughton’s growing presence in supermarkets; Old Jock is now understood to be a top ten bottled ale in Scottish supermarkets, with sales increasing across the UK.

Around 30 people are employed by the merged business in total.

Broughton shareholder David McGowan, sales and marketing at the combined business, told The Herald: “In the short term, the focus will be on the brands. For us at Broughton, Old Jock Ale has done exceptionally well over the last two years of lockdown. There are strong names at Spey Valley and Alechemy has a good name in the craft area.”

He added: “Lockdown has given small organisations like ourselves a huge opportunity to interact and speak to people in a different way, and to have a more direct relationship with people who buy direct through online sales and social media.”

Underlining the export potential of the united business, Mr McGowan noted Old Jock Ale was currently making waves on social media in Sweden, to where it has just exported 30,000 pints of the beer, while Spey Valley has recently exported beer to China. He also highlighted the opportunity to grow sales south of the Border.

“We have a great base in Scotland, but there is a huge opportunity in the rest of the UK,” Mr McGowan said.

“As society reopens [after Covid], people are interested in beer of provenance and authenticity.”

A spokesperson for the combined business said: “Both Broughton and CCB share a passion for brewing the finest quality beers and see a growing consumer interest in premium, authentic products with genuine provenance.

"With investment from Scottish Enterprise and existing shareholders, we believe our expertise in production, sales and marketing, will allow us to build on recent successes in exporting to Sweden, France, Italy and China, and to grow our brands domestically in pubs, bars, supermarkets and the rapidly emerging online sector.

“As we emerge from Covid, by combining our expertise and brands, we see a significant opportunity to invest in our people, and our three brewing sites at Broughton in the Borders, Alechemy in Central Scotland, and Spey Valley in the Scottish Highlands. In recent months Broughton have sent their first shipments of Old Jock to Canada and Sweden, whilst another shipment of CCB’s Snake Venom is on route to China, and our investment will allow us to grow sales in other export markets.”

Mr McGowan linked up with fellow drinks industry veterans John Hunt and Steve McCarney to acquire Broughton from Giles Litchfield in 2015. Mr Litchfield had owned the brewery, based in the village of Broughton close to the River Tweed, since 1995.

Broughton Ales was established in 1979.