GIN DISTILLERY Warner’s is gearing up for international expansion after securing a £1.5 million investment.
The money has come from the Midlands Engine Investment Fund and will also support Warner’s’ marketing objectives, tourism capacity and production. The company plans to double its bottling capacity and triple its sales to more than £25 million within five years.
Warner’s, which has been at the head of the market since the gin renaissance of the mid-2010s, was the first distillery to launch a range of natural non-alcoholic spirits which has become one of the fastest-growing areas of the business.
The £1.5 million has been provided by The FSE Group Debt Finance Fund and is backed by the Recovery Loan Scheme. “We have developed a strong brand around quality and provenance and have secured the funding and resources required to meet growing demand,” said Warner’s co-founder and co-chief executive Tina Warner-Keogh pictured right. “The MEIF expansion capital means we can continue delivering growth and build on the platform created to date.”
The award-winning distillery is based on a family farm at Harrington near Rothwell. Warner’s is a certified B Corp – a sustainable operation that puts nature at the heart of the business – and commits a portion of its revenues to deliver green action.
It has established the Warner’s Nature Marque initiative, which encourages biodiversity in pub gardens across the UK, and its Trash & Treasure botanical series is produced using ‘unwanted’ ingredients and food wastes such as dandelion roots, over-ripe bananas and discarded citrus peels.
Ann Marie McFadyen, investment manager at The FSE Group, said: “Warner’s has proven high demand for its award-winning products, which has in the past been met with temporary recruitment and short-term solutions. Its experienced and capable management team is now looking to establish an operation and employee base that is fit for future growth as they scale the business, and we are delighted to be supporting them to achieve this.”
The global gin market is estimated to be worth £9.3billion, with the UK accounting for £2.2billion. The latest data suggests that 72 per cent of consumers think about sustainability credentials when choosing food and drink, with 40pc willing to pay more for items that are sustainably sourced.
Warner’s has aligned its approach to the changes in consumer behaviour. It says its focus on sustainability and natural ingredients differentiates them from competitors and places them in a strong position to exploit a still-growing market.
Success of Warner’s’ international growth plans would be “a major win for the UK drinks industry”, says Hilary Chipping pictured left, chief executive of the South East Midlands Local Enterprise Partnership – responsible for delivery of the government’s growth agenda locally.
“The food and drink sector in the South East Midlands region alone exported around £313 million in 2021 and it has the potential for significant growth,” she added. “With a diverse range of food and drink businesses, this region is home to innovators in the sector supported by an expansive sector ecosystem in which Warner’s is a leading business and brand. We’re delighted to see investment in Warner’s and hope to see much future success.”
The company’s natural spirits are crafted using water from a spring with home-grown botanicals. The largest independent craft gin distillery in the UK, Warner’s 200-year-old site also acts as a visitor attraction with ten acres of botanical gardens, distillery buildings, tastings, and tours.
The MEIF is a collaboration between the British Business Bank and ten LEPs in the West, East and South East Midlands.
Mark Wilcockson, senior investment manager at British Business Bank said: “MEIF continues to support SMEs that prioritise sustainability and eco-friendly approaches to business and Warner’s Distillery fits this description perfectly as a B Corp. The MEIF supports sustainable growth for the region and this investment will support the company’s international expansion from its Midlands base.”
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2022 and the European Investment Bank. The FSE Group manages a section of MEIF that provides investments between £100,000 and £1.5 million to support growing SMEs across the region.
