Irish owner of Tennent's acquires Drygate craft brewery and venue

The acquisition of Drygate, the craft beer brand and venue by Tennent’s Lager owner C&C Group follows its purchase of Edinburgh beer producer Innis and Gunn’s brand.

C&C had held a 49% share in the company, a joint venture with Heather Ale Limited, a subsidiary of craft brewers Williams Brothers. Accounts state: “The joint venture, which is run independently of the joint venture partners’ existing businesses, operates a craft brewing and retail facility adjacent to Wellpark brewery.”

The company acquired the remaining 51% last year for €900,000, around £775,000: “The primary reason for acquiring the business was to enhance the group’s range of fast-growing, premium and craft beers.”

“The total consideration paid by the group for Drygate Brewing was €0.9m, comprising €0.4m for the group’s existing 49% equity interest and €0.5m for the additional 51% equity interest. This was a non-cash transaction.”

A spokesperson for the group told The Herald: “There has been no change to the brands or how the venue operates, and it remains business as usual.

“Now within the C&C Group portfolio, Drygate plays an important role in meeting consumers’ ever-evolving demand for diverse, high-quality beers.”

Drygate Brewery, with a bar and venue is located in a 1930s former box factory beside the Tennent’s brewery on Duke Street in the East End, Drygate has a beer hall with big screens for sports and space for music and comedy events, and a terrace. You can sample 26 rotating beers on tap and countless more bottled varieties alongside a pub food menu. Visitors can go behind the scenes on a brewery tour.

Innis & Gunn, the Edinburgh-based firm behind a wide range of ales, was acquired by the Dublin-based C&C Group in a surprise agreement worth £4.5 million at the start of the month.

It marked the second sale of a prominent Scottish craft beer firm in the space of just a week, following the collapse and rescue deal involving BrewDog. With the latter firm being taken over by Tilray, a US-based beverage and cannabis company, it means neither brand is under Scottish ownership.

The joint administrators who sold Innis & Gunn’s assets said it was with “deep regret” that redundancies will have to be made following the sale, with the firm’s brewery and three taprooms closed. They added that that the firm was no longer able to trade due a range of factors, including rising costs and a decline in consumer spending.

A regulatory announcement issued by C&C said it had purchased Innis & Gunn from its administrators. Five years ago, C&C, which also owns drinks brands such as Bulmers and Menabrea, acquired an eight per cent equity stake in Innis & Gunn as part of a partnership agreement.

However, the ties between the two companies date back to a manufacturing relationship struck in 2010, which saw Innis & Gunn’s beers produced and packaged at C&C’s Wellpark Brewery in Glasgow, as well as at its own brewery in Perth.

Roger White, chief executive of C&C group, said: “We have worked with Innis & Gunn for many years and whilst it's under difficult circumstances, we are delighted to bring the brand fully into our portfolio. This is a compelling and highly synergistic opportunity to save a well-loved brand for which we currently brew most of the product.

“Our existing brewing and route-to-market platform allows us to integrate the brand effectively and quickly, supporting the ongoing supply of products to customers and consumers. We expect this acquisition to make a small positive contribution to our overall financial performance in the financial year 2027.”