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Insider UK
Lifestyle
Peter A Walker

Vault City secures new supermarket deal

Vault City Brewing has secured a new order with Tesco.

Four-packs of its 330ml cans of the strawberry and peach sour beer are now available in 650 Tesco stores across the UK, helping the Edinburgh brewery pass £3m turnover for the first time - an almost 50% increase year-on-year.

Founder Steven Smith-Hay is optimistic for the next 12 months, fuelled by supermarkets’ desire to diversify its alcohol range and interest from overseas.

“As a small, independent craft brewer, we’re so proud to see our product stocked on the shelves in so many different Tesco supermarkets up and down the UK.

“We’re still a small team and it gives all of us so much faith in our product and all the hard work we put in to have landed such a significant deal - this is a huge opportunity to get Vault City into the hands of lots more people.“

Smith-Hay continued: “The news last year following the mini budget did not paint a pretty picture for beer sales in 2023, and like most breweries we found ourselves preparing for the worst.

“There have been changes in consumer behaviour following the budget and the subsequent cost of living crisis - many people have switched to more sessionable, lower ABV beers - often looking for something reliable as opposed to taking a chance on lots of different, new beers.

“That’s what prompted us to create a four-pack, and to introduce our first 330ml cans on the shelves in the UK.”

The positive outlook for the year also appears to vindicate Vault City’s shift to a four-day working week.

In January, Vault City became the first brewer in the UK to formally adopt a four-day working week.

A reduction in working hours by 20% has coincided with business growth of approximately 50%, as well as improved staff productivity.

Smith-Hay said: “Obviously decreasing work hours is a huge commitment for a small business to make, however we’ve always believed work-life balance should be a big part of our culture and something worth striving for.

“After successful trials, we made the permanent switch at the start of last year and the feedback has been overwhelmingly positive.

“Many studies have shown switching to a four-day week actually improves productivity and despite the decrease in hours from 40 to 35, we can confidently say the team feels more motivated during those four days, knowing that they have three days to live their lives outside of work and recharge their batteries.

“The last 12 months has been a significant period of growth for the business and we firmly believe the four-day workweek played a huge part in that.”

Smith-Hay, aged 32, started brewing sour beer from his home as a hobby, before launching Vault City in 2018.

The firm’s turnover now exceeds £3.1m, allowing for significant funds to be used towards growth: its fermentation capacity from 26,000L to 105,000L with the addition of 10 new tanks, while its team of 19 people is expected to grow to more than 25 this year.

The brewer launched its first core range in May - listed by close to 200 independent bars and pubs across the UK - and after a successful crowdfunding campaign, launched the Porty Vault Taproom and Smokehouse in Portobello, complementing the Wee Vault Tasting Room and Bottle Shop in Haymarket.

Its beers are also available nationwide in Morrisons, with other retailers already in the pipeline.

Vault City also consistently sells to over 15 countries and the export market represents another avenue for growth in 2023.

Smith-Hay added: “We already export to the likes of Norway, Denmark and Singapore and Thailand.

“As well as the export trade being good for business - it now represents roughly 20% of our total sales - we’re still at the stage where we get ‘pinch ourselves’ moments thinking of Vault City cans travelling across the world, appearing in shops and bars in different countries and being enjoyed by sour beer fans.”

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