Daily Newsletter

28 March 2024

Daily Newsletter

28 March 2024

UK’s Northern Monk increases brewing capacity

“Due to this growth, we were pushing the limit of what our current site could handle” - Northern Monk.

Conor Reynolds March 28 2024

UK-based Northern Monk is increasing its brewing capacity by 20% with an upgrade of its brewery in Leeds.

The capital investment of £500,000 ($631,000) will increase the company’s annual capacity to 49,000 hectolitres. Capital for the expansion came from a combination of cash reserves and asset financing.

Northern Monk said it is “after making a strong recovery from recent headwinds” and is now EBITDA positive.

The investment is into the brewer’s main production site located on Sydenham Road, Leeds. The brewer is installing tanks and refurbishing some of its existing buildings, allowing it to make use of the space it already has. Northern Monk operates two sites in the region.

“The increase in capacity represents a really positive period for us as we continue to attract new customers enjoying our beers, like Faith, in their local, to picking up a few cans from the supermarkets,” Northern Monk co-founder Russell Bisset said.

“Due to this growth, we were pushing the limit of what our current site could handle and so this felt like the right time to make a significant investment in our facilities.

“It’s been a challenging few years for the industry as a whole with Covid, rising bills, political uncertainty and supply challenges acutely felt by the sector.”

In its last reported full-year results to 31 August 2022, Northern Monk posted a turnover of £12.9m (now-$16.15m), a 20% rise from 2021. Gross profit sat at £2.2m, compared to £1.9m in 2021. EBITDA grew from £396,000 in 2021 to £1.28m in 2022. The company made an operating loss of £2.2m in 2022, up from a loss of £1.11m in 2021.

Speaking to Just Drinks last year, fellow co-founder Brian Dickson detailed that the brewer had spent time recovering its margins but that input costs had gone up such as packaging materials that went up by 20% in 2022.

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Interested in knowing more about the beer industry and meeting industry leaders including Carlsberg, Asahi, AB InBev, Mahou San Miguel, Bitburger Braugruppe and Super Bock? Join us in Porto on 14 -16 May for the International Beer Strategies Conference.

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