Yorkshire-based Black Sheep Brewery considers sale as 'strategic review' launched

In an updated issues on Tuesday, April 11, Black Sheep Brewery noted that its board was: “currently considering all options, one such option being a merger or an acquisition of the company, in whole or in part, if such a solution offers the best outcome for shareholders and other stakeholders whilst providing a stable base for the future of the business.”

The firm, however, noted that it has plans to take forward and develop the business.

The Masham-based brewery said: “The company has plans to take the business forward with the further development of its core beers and new products to build on its strong brand in Yorkshire, the North and nationally.

“The company is currently experiencing good sales volumes of its beers, however there remains a significant constraint on funding in light of the prevailing economic conditions.

Black Sheep added that it was not currently in talks regarding any offers, and was not currently in receipt of any approach with regard to a potential offer.

The update also stated: “There can be no certainty that any offer will be made nor as to the terms of any such offer.”

Charlene Lyons, Chair & CEO of Black Sheep, also noted that the company has ambitious plans for the coming years.

In a statement issued alongside the firm’s latest update, she said: “We are pleased to have seen so many customers enjoying Black Sheep beers over the Easter bank holiday weekend, one of our busiest trading periods of the year.

“However, we believe that now is the right time to conduct this Strategic Review to secure the best outcome for our valued shareholders and other stakeholders.

“The Brewery has exciting and ambitious plans for the future and interesting projects in the pipeline.

"Forward funding is an issue for many businesses in the tight market brought about by the after-effects of Covid-19 on the hospitality sector and this is exacerbated by the cost- of-living issues affecting consumer spending.

“We are confident that the wider investment market will see the opportunities presented by this well-established and highly regarded brand.”

Last year, the firm held a celebratory event to mark 30 years since it began brewing independent beers at its Masham site.

In April of last year, Black Sheep also secured a major deal with airline Jet2.

The exclusive partnership meant that the company’s Black Sheep Ale can be purchased on board all Jet2 flights.

Earlier this year, Black Sheep Brewery also announced a new partnership with local burger company Slap & Pickle, which established its first permanent premises in Leeds in 2018 after starting as a London-based pop-up.

In February, Slap & Pickle,was given a residency in the Black Sheep Tap and Kitchen in Chapel Allerton.

This came after Slap & Pickle was left without a Leeds venue for its pop-up style kitchen when its previous homes Leeds Assembly Underground and Beer Hawk closed down in December of 2022.