In years gone by Wales’ alcohol scene was always dominated by the same big players. Many of these brands are still going strong or are experiencing a renaissance following investment after troubled times, while others have struggled in the modern era.
But the playing field in Wales is changing, and it’s changing rapidly as dozens of new players enter the market – led by ambitious young brewers and distillers chasing a dream and eager for a slice of the pie.
In April, the Society of Independent Brewers noted that Wales is leading the 海角视频 in terms of brewery growth this year, . This outpaces all other regions and nations in the 海角视频, with many in fact witnessing a decline.
READ MORE: {}
And it’s not just brewers. The list of artisan Welsh distilleries is growing, too.
Right across Wales, many of these new brands are being established in rural areas, following the lead of the incredibly successful Penderyn Distillery, which is located in the foothills of the Brecon Beacons.
These young businesses are hungry for funding, a trend that is pulling through and being noted by the funders. At the , our role is to increase the supply of credit for SMEs, with much of our work done in the start-up realm, where we have noticed a huge uptick in the number of applications for loans from new Welsh alcohol brands keen to establish themselves on the scene.
Over the past few years alone the British Business Bank’s Start Up Loans programme has provided loans to new breweries and distilleries including , , and , among others.
The Bank also supplied acclaimed non-alcoholic beer brand, ., with a Start Up Loan at the start of their business journey back in 2019.
Most Read
Co-founders Joelle Drummond and Sarah McNena have since gone on to raise millions more in funding, becoming a B Corp organisation, exporting around the world, building their own brewery and rapidly growing turnover year on year.
Many of these often young, and always ambitious, alcohol entrepreneurs utilise their funding for the initial capital costs associated with establishing a new brewery or distillery, which unsurprisingly doesn’t come cheap.
Grain silos, pumps, coolers and aerators, yeast handling systems, fermenters, tanks, filters, stills, barrels, bottles and, of course, raw goods, are all required at the start of their business journey and come with the kind of price tag that most wannabe master brewers or distillers can rarely afford with their own cash reserves.
This is where financial demand meets supply, and the likes of the British Business Bank and others are keen to support these start-ups, who represent a wider growth sector of the Welsh economy.
Apart from the obvious economic benefits of supporting these businesses, it’s also recognised that small breweries and independent alcohol brands have a hugely positive impact on their local communities, often raising money for charities and supporting local initiatives.
This is evidenced by Porthcawl Gin, a new Bridgend-based distillery run by Chris Leyshon and Glenn Loosemore, both 31, who received two Start Up Loans earlier this year in order to set up their new gin business.
The pair, who have been friends since childhood, started the venture together with the aim of part-donating funds to a local charity, Sandville Self Help Foundation, which supports people with life limiting and life changing conditions.
Don’t miss
This frequent combination of enterprise and empathy within the sector is an appealing prospect for funders, many of whom have their own corporate social responsibility notes to strike.
For the British Business Bank, these young and vibrant brands, led by driven and passionate entrepreneurs, define the kind of businesses we love to support and their evolution marks an exciting new chapter in the future of Wales’ drinks sector.
Jessica Phillips-Harris is the Senior Manager for Wales at the British Business Bank.
Sign up to the BusinessLive Wales newsletter and follow us on LinkedIn
As well as an in-depth early morning newsletter, we will be sending out regular breaking news email alerts. To sign up to this service
And, follow us on to catch the latest stories and to network with the Welsh business community.