Lerwick Brewery, which describes itself as the UK’s most northerly, is targeting major growth, including supply deals with supermarkets.
It is aiming to increase its mainland UK sales by 500% within the next three years. The brewery declared it is confident of meeting its target of reaching £1 million in overall annual sales by 2027.
Lerwick Brewery said "an ambitious growth strategy" would see it "launch a robust marketing campaign and seek prominent listings in major UK supermarkets, capitalising on a burgeoning interest in Shetland and its unique craft beers".
It declared: “Despite operating in a crowded craft beer market that was badly impacted by successive pandemic lockdowns, the company is confident of meeting its target of reaching £1m in sales by 2027.
"This success mirrors the growth of Shetland's tourism sector, with visitor spend reaching £35.8m in 2022 - up from £16.2m in 2013."
The brewery observed that "one of the contributing factors to the tourism boom is the popularity of the BBC's Shetland drama series".
The growth in tourism revenues has been fuelled by a rise in cruise ship arrivals and the "allure of the islands' stunning scenery, rich history, and unique culture", it added.
Lerwick Brewery noted its brewery tour attendance had doubled in the past year.
It said: “This influx of tourists has provided a strong foundation for Lerwick Brewery's existing success, with 86% of 2022 sales originating from Shetland.
“The brewery is now poised to leverage this momentum and tap into the vast potential of the UK mainland market.”
Lerwick Brewery was founded in 2012 by three brothers, John, Graham, and Jimmy Mercer.
The brewery noted its initial product - its 60°north Shetland lager - quickly established "a loyal following".
Named after Shetland’s northerly latitude - "shared with Finland and Alaska" - the company says the lager "reflects the brewery's unique location and the blend of Scottish and Nordic influences that inform its distinct brand identity”.
The brewery's range has since expanded to include a variety of craft beers, including Lerwick IPA, Tushkar oatmeal stout, Skipper’s Ticket Shetland bitter, and Hamefarin pale ale.
These beers are currently sold in bottles and cans for the off-sales market, with 60°north Shetland lager, Lerwick IPA, and Hamefarin also available on draught to bars and hotels in Shetland.
Head brewer Jonny Sandison said. "The success we have achieved so far has been pleasing, but we feel we are only scratching the surface.
“First and foremost, we make high-quality beers and so we were always confident that they would find a market.
“We are proud of our roots in Shetland, which has grown in popularity in recent years with a lot of attention now focused on the islands as a result of the popular BBC series. With visitors from all over the world, the Shetland brand has never been stronger and we believe there’s a huge appetite for products related to the islands, including our beers.”
Lerwick Brewery noted it is "actively pursuing partnerships with major UK supermarket chains".
It added: "The initial focus will be on securing listings in Scotland, before expanding further south."
The brewery noted it will be offering its full range in cans, "allowing for ease of distribution, and appealing to a broader consumer base".
Managing director Graham Mercer said of the marketing push to accompany the brewery's drive on to the mainland: “While retaining our core values of Shetland life, community, and creativity, the branding will be refined to appeal to a younger, trend-conscious demographic - primarily male, craft beer enthusiasts and those with a taste for adventure.”
He added: “The new brand identity will emphasise the ‘windswept wild’ aesthetic of Shetland, aligning with current craft beer trends and the evocative imagery associated with the popular Shetland TV series, which has significantly heightened mainland awareness of the islands.
“Storytelling will be central to the campaign, highlighting the brewery's unique Shetland heritage, its passionate team, and its commitment to quality and innovation.”
The brewery is also aiming to enhance its online shop, making its products easier to buy for mainland customers.
Mr Mercer said: “Prior to the pandemic, the online shop experienced significant growth, with sales increasing by more than 500% between 2019 and 2021. This demonstrates the potential for online sales to contribute significantly to the brewery's overall growth.
“We are confident that our unique story, combined with our high-quality products and strategic marketing, will drive substantial growth on the mainland among craft beer lovers.”
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