The firm’s financial results ending December 2021 show robust brand performance and a solid commercial position whilst weathering challenging business conditions including the impact of the new COVID-19 variant, on-trade restrictions, and domestic and international supply chain issues.

By investing into post-pandemic trading plans, cost efficiencies and brand marketing, following the ending of lockdowns, Innis & Gunn achieved a positive EBITDA in the second half of 2021.

The firm’s Q3 turnover was 23% higher than 2020, however the impact of Omicron in late November and delayed year-end shipments due to supply chain issues resulted in a sales outturn 1% lower than in 2020 at £21.1m.

At the same time, gross profit margin percentage increased by 3% driven by the return of on trade and hospitality sector. Innis & Gunn Lager continued its strong performance in the on-trade. When that channel was able to trade, there was an exponential rebound of sales with an increase in volume of 61% YOY. This performance was also supported by an increase in distribution.

Innis & Gunn retail performed well on the back of the four existing Brewery Taprooms reopening. There was a resultant 84% increase in draught sales demonstrating a gradual return to pre-pandemic normality.

Dougal Gunn Sharp, founder and master brewer, said: “Our performance in 2021 has been extremely encouraging, although revenues ended marginally down on the previous year, in half two we were profitable despite the continued disruption of lockdowns, restrictions and the well-documented UK and international supply chain issues.

“We are witnessing post-covid recovery on the back of the on-trade reopening, consumers are returning to bars despite growing inflationary pressures on spending and costs.

“Our brand has shown strong momentum with a continued focus on investment and marketing; we ran the most successful Lager campaign in our history, undertook major branding updates to core ranges to better reflect our quality beer and brand positioning. And we ended single-use plastic packaging with our canned ranges. Our Taproom business had a successful year delivering a modest profit and increased turnover from 2020.”

He added: “Whilst we continue to face an uncertain outlook for consumers and businesses, 2022 is the year in which we will build. We are committed to growing our brand with a focus on innovations, creativity and building our lager distribution in bars across the UK.

“We are gradually extending our UK and overseas customer base, which reduces our dependence on any one single market or customer. We have agility in our cost base and discretionary areas of spend, which affords us a high level of flexibility to help compensate against price fluctuations.”

He concluded: “The worst of the pandemic seems to be behind us and as the on-trade returns to normal so does our focus on driving the sales momentum we know our brand is capable of in the UK. As proven by our strong results through the pandemic, the strength of our brand coupled with the mix of markets and sales channels we supply has enabled us to weather the storm.

“That said, no-one in this business is complacent, we have big ambitions for Scotland’s Best Lager and a passionate and highly experienced team that is focused on delivering growth despite the ongoing economic challenges we all face.”