Innis & Gunn delivers ‘robust’ performance despite challenging year
Brewer Innis & Gunn has delivered a robust performance across both brand and business, despite an incredibly challenging year, according to recently filed financial results ending December 2020.
The brewing side of the business accounted for 97% of the Group’s £21.3 million turnover, maintaining a profit (before tax) for the year, despite the forced closure of the on-trade sector for much of 2020. This sector shutdown had a significant impact on Innis & Gunn’s Retail business, which accounted for the Group loss in the year.
Despite the reduction in Group turnover by 12%, the businesses strategy to focus on growing core products, in core markets, delivered a like for like growth of 21%, excluding the on-trade, which would have seen Innis & Gunn’s 17th year of consecutive growth.
Strong growth was achieved with Innis & Gunn’s core products across the business throughout the year. The UK off-trade was 28% YOY and in Scotland, Innis & Gunn became the number two Scottish beer brand, up two places. Owned e-commerce accelerated, with the Innis & Gunn online shop growing 1,286% YOY. In the key export market of Canada, there was a swing of 19% from 2019, with Innis & Gunn holding position as Canada’s number one import ale.
Innis & Gunn’s flagship beer, The Original, grew by 7.4%, a positive swing of 26.2%, driven by growth in the UK and internationally.
The firm’s Lager Beer grew 5.3% overall, a particularly strong performance as historically a significant portion of volume has been delivered through the UK on-trade. The premium Lager continues to be Scotland’s number one Craft Lager brand and the largest and most valuable craft beer, contributing 84% of all craft lager volume and 83% of all craft lager value growth in the Scottish off-trade.
This trend has continued into 2021, with significant new listings secured for Innis & Gunn’s Lager Beer, which will now be available across almost 500 Tesco stores throughout England in 4x440ml can format from this month.
These new listings, coupled with the new on-trade distribution partnership with C&C Group, will play a key part in Innis & Gunn’s ambitious growth plans to expand into England, bringing their multi-award-winning premium Lager to more drinkers.
Dougal Gunn Sharp, founder and master brewer, said: “It is fair to say that Innis & Gunn has had a strong 2020, despite it being the most challenging year in this businesses’ history and we have weathered the COVID-19 storm. We ensured our people stayed safe and were supported throughout and we continued our commitment to our charity partner, Meals & More, aiming to end children’s holiday hunger.
“We also used time in 2020 to focus on the future of Innis & Gunn, with the growth plans implemented already seeing significant success across the business. The closure of the on-trade impacted what would have been our 17th year of consecutive growth, but that aside, we have seen huge success in the off-trade and through our own e-commerce channel and we are in a strong position.
“To achieve such significant new listings for our Lager throughout England with Tesco, is phenomenal and testament to the quality of beer that we produce and the brand that we have built. I look forward to continuing the momentum we are creating and bringing Scotland’s Best Lager to more drinkers around the UK.”