The brewing group behind Black Sheep and Purity Brewing has insisted it is “trading as normal” despite a leaked document revealing it is being touted for sale by restructuring firm FRP Advisory.
Having filed notice of intent to appoint administrators late last week, Keystone Brewing Group issued an update to customers today (2 December) promising it had “contingency plans in place to minimise any disruption” to orders.
“All brewing sites, logistics and supply chain operations are continuing as normal,” Keystone said. “Orders are being fulfilled with minimal disruption to delivery schedules, and pubs, bars, wholesalers and retailers are receiving their usual range of beers and drinks.”
Meanwhile, CEO Steve Cox insisted that – despite the company requiring protection against legal action from creditors – Keystone’s business fundamentals remained “strong”.
“The fundamentals of the business remain strong – our teams are committed, our brands are well loved, and our operations are resilient,” Cox said. “We are focused on emerging from this process stronger and more stable, ready to serve our customers for many years to come.”
However, in a document seen by The Grocer and understood to have been circulated to possible interested parties this week, FRP revealed it was offering the chance to acquire Keystone.
It described the business as a “portfolio of two established, nationally recognised UK brewing brands… with well-invested, state-of-the-art brewing facilities in Yorkshire and Warwickshire”.
Keystone had an annual brewing capacity of around 265,000hl annually “alongside numerous licensing agreements”, FRP said.
Alongside owned beer brands Purity Brewing, Black Sheep, Brew By Numbers, Brick Brewery, Fourpure, Magic Rock and North Brewing, Keystone distributes Bavarian lager brand Hofmeister, French cider brand Maison Sassy, and low & no-alcohol brewer Big Drop.
Keystone also had a “blue-chip customer base, including leading UK grocers such as Tesco, Morrisons and Sainsbury’s” and a “highly skilled and experienced workforce”, FRP said.
The business generated around £31m in annual revenues – on volumes of just 68,000hl – in the past 12 months, it added.
The figure is some way short of Keystone’s publicly stated ambition to grow its sales to £100m by 2028.
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