Isle of Arran reprises Brewdog to stage huge expansion plan
By: JimOldfield
September 30th, 2012
Isle of Arran Brewery is hoping to raise £3.8 million this autumn with the first of three share offerings that will make it a PLC and increase beer production TENFOLD.
Following the lead of Scottish super-brewer, Brewdog – and using the same lawyers – Isle of Arran plans to raise a total of £10 million over the next three years to fund a brewery expansion plus a move into new international markets.
The brewery – which makes Milestone beers as well as its trademark Arran ales such as Arran Blonde and Arran Dark – already has its eye on a new site on the island, with plans for a bottling plant on the mainland.
It intends to offer a minimum £50,000 investment in its first offer, followed by a futher “cloud flotation” around Christmas, which will be open to investors for a minimum investment of just £200.
The brewery has been facing a quandary.
By next year it will breach its output limit – it currently qualifies for a 50 per cent duty clawback, under the Small Breweries Relief scheme – so any increase in capacity will have to be big enough to make economic sense.
If the floatation is successful the brewery will see its 16,000 hectolitre output rocket to 160,000, as it sets its export sights on the USA and nine European countries.
Isle of Arran currently employs 10 people and last year made a pre-tax profit of some £60,000 on sales worth £720,000
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Isle of Arran Brewery
