Beer exports help profits rise

Growth in exports of Scottish craft beers has helped food and drink wholesaler JW Filshill record a double-digit rise in profits despite a dip in sales.

The Glasgow-based company saw operating profits rise by 22 per cent to £1.1 million in theyearto31januaryalthough turnover edged down 0.5 per cent to £142m due to factors including the continuing fall in tobacco sales in the convenience store sector.

Filshill, one of Scotland’s oldest independent food and drink wholesalers, supplies 175 Keystore convenience outlets across Scotland and the north of England.

The group’s international division, which exports craft beer, spirits and other grocery products to overseas markets such as Asia-pacific, saw continued growth.

Managing director Simon Hannah, the fifth generation of the family to run the business, said: “Our market is evolving with further changes to tobacco sales regulations likely to drive the same trend for coming years, forcing convenience operators to focus more heavily on growth areas such as local sourcing, food to go, and fresh and chilled foods.

“We have ramped up investment in our worforce to enable us to engage more closely with our Keystore customers and manage the principal risk of losing customers to other groups by offering strong promotions and advice and support, including on store layouts, consumer leaflets, digital social media and electronic point of sale tills.”

He added that the group was in a good financial position given current market conditions and had continued to invest with an extension to its Hillington office complex to accommodate an expanding workforce, training facilities and new vehicles.