Arran Brewery seeks partial sale to power growth plans

Arran Brewery is to sell a minority stake in its Loch Earn brewery, hotel and visitor centre as it looks to expand production capacity.

By HANNAH BURLEY

Published 28th Feb 2019, 14:03 BST

Updated 1st Apr 2019, 17:53 BST

MD Gerald Michaluk said Arran Brewery is looking to emulate the model used by Drygate. Picture: Contributed

The beer maker said it is considering the sale of a 45 per cent stake in its venture to another brewer or hotelier, and is also considering deals with a venture capital firm or the public via crowdfunding platforms.

MD Gerald Michaluk said the firm aims to emulate the shares model used by Drygate and its part-owner Tennents.

He said: “We are simply copying the Drygate brewery shareholder model to avoid paying a higher than needed duty level until the brewery is established. By selling the stake in the business we can fund the remaining elements of the project and make it fly.”

The brewer and its backers have so far invested more than £700,000 in the Loch Earn site, including to equip the brewery and cider production facility.

It is also licensed for wine and has provision to produce apple brandy, gin and whisky.