TWO food and drink entrepreneurs have joined forces to create a state-of-the-art bottling facility which they say can help Scottish craft spirits producers dramatically increase export sales.
Ron Young and Adrian Louden have invested “north of £650,000” in Contract Bottlers Glasgow (CBG), with the investment boosted by a grant worth £180,000 from Scottish Enterprise.
The duo says the bottling facility, based in Cumbernauld, will allow small distillers the chance to utilise services which are typically only accessible to larger producers. This includes track and trace technology that allows producers to demonstrate full supply chain traceability but which until now has generally been available only on large-scale production runs.
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According to the duo, this facility will make it easier for smaller producers to secure exports and listings with major UK retailers because they are able to demonstrate traceability throughout the entire production system, from distilling through bottling.
CBG, which is currently installing its equipment, said its facility also offers more flexible bottling solutions for small-scale distillers. It will be able to handle production runs of as little as 1,000 litres, with the line able to accommodate bespoke bottle designs ranging from 5cl to 75cl in size.
The entrepreneurs say the service will act as an “enabler” for small producers to access bigger customers and markets at home and abroad, believing that craft distillers have the opportunity to sell more overseas when freed from some of the current restraints imposed by their size.
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Mr Young, who has a 20-year pedigree in drinks production, bottling sales, said Scottish Enterprise had been receptive to the plans because it recognised a “distinct lack of capacity within the market”. The business owners believe that, with exports worth only one-quarter of the £2 billion of sales generated by gin in the UK, there is a “massive opportunity” to widen sales overseas and ultimately help the Scottish food and drink industry raise turnover to £30 billion by 2030.
Mr Young, whose career has included spells with Halewood International and H&A Prestige Packing, said: “We talk about ourselves as an enabler. We are a totally independent business and we are striving to help the growth of the spirit movement in Scotland to go to the next level.”
Future plans include a move into organic bottling and the introduction of a canning line. The latter would be to take advantage of the growth in gin and mixer products increasingly being favoured by gin distillers.
Mr Young, who worked on a successful canned gin project products for a Scottish distiller in a consulting capacity last year, said: “If we can get a small canning line in the UK, particularly in Scotland, we can unlock it for a lot of these distilleries. Just like the bottled product, these guys are looking for new, exciting products for consumers to engage with.”
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Mr Louden brings to the venture extensive experience and contacts in the food and drink industry as part of a family business, which was sold in 2016. He came into Mr Young’s orbit when assessing opportunities in the food and drink industry for investors, though the two had initially got to know each other through their respective children.
Mr Louden said: “I just got it. I had enough contacts in my network to sense check where the industry was at. I had looked previously at a water business and I knew there was an issue with capacity. I was getting the same message from everyone I was speaking to.
“We are very much an enabler. We want to help these small craft distillers get to the next stage, as part of that overall Scotland 2030 Scottish Government initiative.”
The business will employee seven staff initially, with broad plans to double that, depending on the flow of contracts.
Asked whether they have any concerns about Brexit, Mr Young said there was been concern in the industry over a shortage of glass supply as a result of companies stockpiling. But he backed the Scottish industry to thrive internationally in the long run, as it has for most of its history.
Mr Louden said: “We are truly excited and passionate about the opportunity to change the industry and maximise its potential. Ron has practical problem-solving skills in design, labelling, sealing and bottling, combined with product development and UK sales experience, while my previous experience includes growing our family business into one of the largest ethnic food multi-site distribution businesses in the UK. This role allowed me to grow my knowledge and skills in working with international markets.
“We see a role for ourselves in moving the whole industry forward by raising production standards, allowing it to maximise its potential.”
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