Scotmid supports soft drinks venture
● Start-up Drinks Lab was founded last year to target craft soda market
Convenience store operator Scotmid has invested in a new bottling venture that aims to overcome the challenges in getting small-batch craft soft drinks manufactured.
The Start-up Drinks Lab was founded last year by Hannah Fisher and Craig Strachan as a result of their frustration at the lack of accessible production facilities for small-batch craft sodas.
It will specialise in contract manufacturing specifically for soft drinks with the business officially opening its doors in May with a new production facility in Kelburn Business Park, Port Glasgow.
The new venture will offer five key services – product development in a trial kitchen, manufacturing, packaging, storage and distribution. The distribution includes a dedicated online store that will showcase the best hard-tofind craft sodas from around the world as well as in-market distribution within the off and on trade through a selection of distributors both in the UK and overseas.
John Brodie, chief executive of Edinburgh-based co-oper- ative Scotmid, said: “Complementary diversification is a key element of the growth plans of Scotmid. In Hannah and Craig, we have found two young entrepreneurial business people who share many of our co-operative values and our vision of helping other businesses.
“We are delighted to be able to offer both financial and business support – vital for them at this key start-up stage. We look forward to working with them over the coming years and watching them grow and develop into another successful Scottish business.”
The level of funding being provided by the retailer has not been disclosed.
Strachan said: ”The backing from Scotmid gives us excellent support through the initial start-up phase of our business. We have already developed a close working relationship with John and his senior management team.”
Fisher added: “They believe in what we are trying to achieve and they share our vision in being able to offer soft drink brand owners a service which encompasses everything from concept through to shelf.”
The two entrepreneurs received a boost early last year by winning Scottish Enterprise’s Collaboration Prize.
Following 16 months of fundraising, sourcing premises, pitching to potential customers and recruiting a specialist soft drink production team, The Start-up Drinks Lab is on track to open its doors this spring.
The firm currently has a dozen customers on board, each of whom has created niche craft soda brands. They are based across Scotland, Wales, London, Belgium and Canada.
Scotmid operates more than 190 convenience stores in Scotland, out of its 300-plus retail outlets across the UK.
Unveiling a steady interim trading profit of £2 million last October, Brodie said at the time: “It’s a solid start to the year despite the uncertainty economically and the additional cost pressures that we’ve faced as a business.
“Economic buoyancy is a challenge – consumers are cautious and their confidence is at a fairly low level.”
It said in its accounts that turnover for the 26 weeks ended 29 July reached some £184.7m, a year-on-year dip of about £800,000.
“In Hannah and Craig, we have found two young entrepreneurial business people who share many of our co-operative values.”
JOHN BRODIE, SCOTMID