Craft breweries and food firms benefit from £10m funding boost

Craft beer company BrewDog is to receive a Scottish Government grant to help open a new brewery and create 20 full-time jobs.

The Aberdeenshire-based firm is to receive £551,000 from the Scottish Government as part of the latest round of food and drink funding.

The cash will assist the media-savvy company — which marked the 2012 Olympics with a performance-enhancing beer that would have seen athletes fail drug tests if they drank it — set up a new brewery in Ellon.

The funds will create a number of jobs and allow BrewDog to switch production to Scotland from England and Belgium.

In addition, a new storage facility will see the firm increase the amount of Scottish barley it uses.

The expansion also means BrewDog will be able to produce a new non-alcoholic malt-based range of soft drinks.

James Watt, the firm's co-founder, said: "The grant award has ensured that our state-of-the-art eco-brewery is being built in Aberdeenshire.

"The new brewery will increase our production capacity ten-fold and give us the capacity to keep up with the overwhelming demand for our beers and continue to grow our business.

"In addition, the project will create 20 full-time jobs and significantly increase the amount of Scottish malted barley we purchase."

He added: "We look forward to putting Scotland firmly on the world map for the finest quality premium craft beer and are extremely grateful for the Scottish Government's help in making this project a reality."

With almost £10m being awarded in the latest round of funding under the Food Processing, Marketing and Cooperation (FPMC) scheme, Heidi Beers in Glasgow, which trades as the WEST Brewery, is another of the companies to receive a grant.

It will use £1.85m on for its expansion plans, which will support 18 new employees and means the company will move all its production to a new facility in Scotland.

The brewery will source more than 90% of its barley from Scotland and will also launch a new low-alcohol lager.

Petra Wetzel, of Heidi Beers, said they were "thrilled" with the Scottish Government's support.

She added: "The food and drink industry in Scotland, in particular the premium producers, play an increasingly important role for Scotland — focusing on job creation, exporting Scotland the brand and providing Scots with sustainable and well-sourced produce.

"WEST is proud to create premium lagers and wheat beers that showcase the best of Scotland and this grant will finally enable us to build our brewing centre of excellence right here in Glasgow."

Rural Affairs Secretary Richard Lochhead said the food and drink industry was "one of Scotland's greatest success stories".

He added: "The funding announced today will benefit a wide range of small and medium-sized businesses across the country and support the creation of new jobs and further investment."

Mr Lochhead said Scottish beers and ales were "highly sought-after" and added: "Heidi and BrewDog are innovative Scottish companies and this investment will not only create jobs, but boost Scottish agriculture through more locally sourced barley.

"I particularly welcome plans to diversify their products to include low and non-alcoholic drinks."

Since 2008 a total of 159 projects have benefited from £38m under the FPMC initiative.

The latest round of awards will see Malcolm Allan, a family-owned butchery business based in Falkirk, receive £846,687 to help with the purchase of a new building and the upgrading and installation of meat-processing facilities.

Turriff-based carrot and potato company Benzie gets £341,438 to extend its facilities while TDC Thomson, a vegetable producer in Kelso, is awarded £99,300 to help construct a humidified and refrigerated storage building for broccoli and cauliflower.

Connage Highland Dairy in Inverness, a hand-made cheese producer, will receive £15,370 to help build a new packing area and office space as well as to install refrigeration and processing equipment.

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