Investors – hop to it!

7:50pm Sunday 6th July 2008

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ONE of Yorkshire’s most successful small brewers is seeking investors to help it grow.

York Brewery has quadrupled in size since it opened 12 years ago and now runs four profitable pubs.

That has left its founders, former Forte managers Tony Thomson and Tony Smith, feeling they have taken the business as far as they can go on their own.

They have asked Avondale, a group specialising in brokering deals for small and medium-sized businesses, to find potential investors who can take the brewery to the next level.

York Brewery, which has the capacity to produce 150 barrels of beer a week, employs more than 60 staff.

Its three York city centre pubs are The Three-Legged Mare, The Last Drop Inn and the Yorkshire Terrier, and it also owns Mr Foley’s Cask Ale House, in the centre of Leeds.

“We have worked long and hard to build up York Brewery into a thriving, profitable enterprise,” said managing director Mr Thomson.

“Last year saw the most progress yet – we opened our first pub outside York and increased our brewing capacity by 50 per cent. We believe the company is on the verge of even greater things, but we need help to get there.”

The brewery’s long-term viability is assured because it is built on a sound business model. Its four pubs and brewery bar create a guaranteed demand for its award-winning beers. An expansion would make the most of this reciprocal set-up.

“If there were another ten or more pubs in the estate, York Brewery would be an extremely lucrative business.

“All that’s needed to realise those rewards is an injection of capital and an experienced eye to find pubs with potential.”

Mr Thomson will only contemplate a deal with someone who shares their vision for the brewery’s future. He turned down a proposed buy-out from a big brewer last year and would seek assurances from any investor that they will retain the company’s independence. They would also be expected to protect the brewery’s award-winning brands, which include Terrier bitter and Centurion’s Ghost Ale, and to maintain the high standards established in both the brewery and pubs.

“We are looking for people who share our vision for quality beer served in quality pubs,” Mr Thomson said. If no one matching these criteria emerged, he would shelve plans for a deal.

York Brewery became the first brewery to operate in York for 40 years on opening in May 1996.

Its beers have won several awards, including a Gold Medal at the Great British Beer Festival for Centurion’s Ghost Ale.