Bath Ales’ parent company has secured new funding from its lenders to help it withstand the challenges of Covid-19 and allow it to invest for the future.
St Austell, which makes beers including Tribute bitter, Proper Job IPA and Korev lager brands, and owns a portfolio of more than 180 pubs, inns and hotels, announced 100 jobs losses last November as it battled against the impact of the coronavirus pandemic.
With its pubs closed under the latest lockdown, including The Hop Pole, The Salamander and The Griffin in Bath, St Austell said the working capital secured from Barclays, HSBC UK, and NatWest – details of which have not been disclosed – would give it the capacity to plan ahead.
St Austell bought Bath Ales in 2016 and has since invested heavily in the business, including multi-million pound sum to double the capacity of its Hare Brewery at Warmley between Bath and Bristol to more than 50,000 brewers’ barrels of beer per year – the equivalent of over 14.5m pints.
The brewery produces Bath Ales’ flagship beer Gem, Lansdown West Coast IPA, Sulis lager and a growing portfolio of seasonal and specialist beers.
St Austell Brewery chief financial officer Colin Stratton said: “We’re delighted to have secured our funding needs for both the short and medium term.
“As many businesses in the hospitality sector face increasing uncertainty as a result of Covid-19, and the consequences for the wider economy, this funding will enable us to look forward with confidence and underpin our plans for the future progression of the business.
"We can now continue to invest in our pubs and ensure that, when we emerge from this third lockdown, they are well positioned to meet the evolving needs of our customers.
“As a business, it’s vital that we adapt our offering to changes in the market and consumer behaviour, while still ensuring that we consistently deliver a warm welcome and great hospitality. This funding support will enable us to do just that.”
Barclays relationship director Jim Turner said the pandemic had forced many businesses to temporarily suspend or limit their operations. Barclays funding would give St Austell enough momentum to get through the uncertain time and be ready to bounce back when demand returns.
“They have weathered economic crises before in their 170-year history and I’m sure will draw on the strength of the company to do so once again,” he added.
NatWest relationship director Stuart Allison said: “We have worked closely with St Austell Brewery since the beginning of April to support the company through enforced closures and restricted trading as a result of the Covid-19 pandemic.
“At NatWest we know how important it is to keep looking forward and have provided our expertise to create a specialist funding package to help with the brewery's long-term investments.”
HSBC UK head of corporate banking in Devon, Cornwall and Somerset James Jordan added: “The bank has supported the brewery’s ambitious growth strategy and is pleased to continue this support during an incredibly challenging time for the entire hospitality industry.”
St Austell also supplies retailers and licensed premises throughout the country and exports internationally.
