St Austell Brewery has secured significant working capital from its three lenders — HSBC UK, Barclays and NatWest — to ensure that it has the capacity to withstand the challenges of the pandemic and invest strategically for the long-term success of the company.
The brewery, which remains independent and family owned, has a long pedigree in Cornwall and operates moree than 180 pubs, inns and hotels across the West Country – including managed houses and tenanted properties.
It is famous for cask beers such as Tribute pale ale and Proper Job IPA, but also for an increasing range of modern and experimental brews. The size of the capital injection has not been revealed.
Colin Stratton, St Austell’s chief finance officer, 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 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.”
James Jordan, head of corporate nanking for HSBC in Devon, Cornwall, and Somerset, said: “St Austell Brewery is synonymous with Cornwall and the South West, which is a region HSBC UK has had a presence in for many years.
“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. The team, led by relationship director Martin Rowe, has done an excellent job putting the finance in place and we look forward to seeing the business thrive in the future.”
