Leeds craft brewer Northern Monk is to spend £500,000 to increase its brewing capacity by a fifth.
The investment would increase capacity by an additional 8,000 hectolitres (hl) – equivalent to around 1.4m pints – per year, Northern Monk said.
It would be funded using a combination of asset financing and existing cash reserves and consist of new equipment such as fermentation tanks and the reconfiguration of its main brewing site in Holbeck, Leeds, the brewer added.
When complete, Northern Monk will have an annual brewing capacity of 46,000hl or 8.4m pints per year across its two Leeds brewing sites.
The investment marked the start of “a really exciting new era” for Northern Monk, said Russell Bisset, who co-founded the brewery alongside head brewer Brian Dickson in 2013.
“The increase in capacity represents a really positive period for us as we continue to attract new customers,” 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.”
Northern Monk’s expansion comes during a turbulent time for the craft brewing sector, with a slew of insolvencies and pre-pack administration sales having taken place over the last 12 months.
Bisset acknowledged challenges including “covid, rising bills, political uncertainty and supply chain challenge” had been “acutely felt by the sector” in recent times. He said, however, that Northern Monk had made ”a strong recovery from recent headwinds” and was now EBITDA positive.
“We’re deeply grateful to our consumers and customers for their continued support, which has allowed us to continue to grow as a company,” he added.
Northern Monk’s beers are stocked with retailers including Tesco, Morrisons, Sainsbury’s and Asda.
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