Scotland’s ‘mad scientists of craft beer’ are bucking the trend of falling beer sales having secured a bumper order from supermarket giant Tesco.
Vault City Brewing’s four-pack cans of its Strawberry and Peach release are now available in 650 Tesco stores across the UK. This has helped the firm pass £3m turnover for the first time — an almost 50% increase year on year.
Tesco’s commitment demonstrates that consumer demand for sour beer remains strong, despite reports beer sales are set to decline in 2023. In February, global brewing behemoth Carlsberg sounded the alarm by predicting ‘another challeng thating year’ for the industry over fears higher prices and inflation will see customer spend on beer go flat.
Yet, despite the understandable cause for concern, Vault City Brewing founder Steven Smith-Hay has optimism for the next 12 months, fuelled by supermarkets’ desire to diversify their alcohol range and interest from overseas.
He said: “As a small, independent craft brewer, we’re so proud to see our product stocked on the shelves in so many different Tesco supermarkets up and down the UK. We’re still a small team and it gives all of us so much faith in our product and all the hard work we put in to have landed such a significant deal.
“Tesco’s investment in our Strawberry and Peach sour beer proves the appetite for craft beer across the country continues to grow. This is a huge opportunity to get Vault City into the hands of lots more people.
“The news last year following the mini budget did not paint a pretty picture for beer sales in 2023, and like most breweries we found ourselves preparing for the worst. There have been changes in consumer behaviour following the budget and the subsequent cost of living crisis. Many people have switched to more sessionable, lower-ABV beers, often looking for something reliable as opposed to taking a chance on lots of different, new beers.
“That’s what prompted us to create a four-pack, and to introduce our first 330ml cans on the shelves in the UK. It has the same Vault City quality people can rely on, but at a more affordable price point.”
The positive outlook for the year ahead also appears to vindicate Vault City’s shift to a four-day working week. The Edinburgh beer producer made national headlines after becoming the first brewer in the UK to formally adopt a four-day working week in January last year. A reduction in working hours by 20% has coincided with business growth of approximately 50%, as well as improved staff productivity, mental health, and overall happiness.
Steven said: “Obviously, decreasing work hours is a huge commitment for a small business to make. However, we’ve always believed work-life balance should be a big part of our culture and something worth striving for.
“After successful trials, we made the permanent switch at the start of last year and the feedback has been overwhelmingly positive. More staff are able to spend time with their families, switch off, and prevent burnout.
“Many studies have shown switching to a four-day week actually improves productivity, and despite the decrease in hours from 40 to 35, we can confidently say the team feels more motivated during those four days, knowing that they have three days to live their lives outside of work and recharge their batteries.
“The last 12 months has been a significant period of growth for the business and we firmly believe the four-day workweek played a huge part in that.”
