A £35 million Centre for Advanced Brewing and Distilling (CABD) at Heriot-Watt University in the Riccarton area of west Edinburgh could generate an additional £53.4 million for the Scottish economy every year, according to a new BiGGAR Economics report.

BiGGAR’s Economic Impact Assessment provides an analysis of the potential economic benefits of a new state-of-the-art centre at the university, continuing Heriot-Watt’s support of academic research and innovation in brewing and distilling which dates back to 1903.

BiGGAR estimates that within 10 years, the CABD could be generating a total economic impact of £324.8 million Gross Value Added (GVA) per year for Scotland as well as 1,570 jobs within 10 years.

It would also continue the success of Heriot-Watt’s International Centre for Brewing and Distilling (ICBD), which has been a driving force behind the success of the brewing and distilling sector for nearly 40 years.

In 2024-25 alone, the ICBD generated £240 million GVA for the Scottish economy and supported 1,180 jobs.

In order to build the new CABD, Heriot-Watt is looking to unlock £25.3 million from industry and £9.7 million in public investment. BiGGAR’s assessment states the CABD could deliver £20.80 of economic benefit for every £1 of public funding invested.

Currently, the alcohol sector employs 60,000 people, representing 2.4% of all jobs in Scotland, 14,000 or 71% of the UK’s distilling jobs, and a GVA per head across the distilling of spirits and manufacturing of beer sub-sectors of £240,730.

However, the assessment states that the ICBD’s ability to sustain its current level of success is under threat and a new CABD would help sustain and develop Scotland’s brewing and distilling sectors.

These include meeting brewing and distilling’s commitment to reach net zero by 2040; tackling the large volumes of water used to create Scotch whisky in particular; maintaining their competitiveness by finding solutions to the current rising input costs – from 2020 to 2025 they increased by 37%; and tackling the current skills shortage across the sectors.

BiGGAR highlights how the CABD could accelerate innovation, ensure ‘workforce readiness’ and tackle future industry competitiveness through:

• Housing new plug-and-play brewing and distilling equipment to enable businesses to trial new production methods, advanced research labs to develop low-carbon technologies
• Supporting new distillation techniques and providing a dedicated entrepreneurial hub to support enterprise formation and growth
• Offering the latest, most advanced brewing and distilling equipment; as well as a raw materials laboratory and product quality and innovation laboratory
• Providing a sensory suite, as well as carbon capture and renewable energy integration.

Professor Chris Turney, Deputy Principal of Research and Innovation at Heriot-Watt University, said: “BiGGAR Economics’ independent assessment provides a huge vote of confidence in our vision for a new Centre for Advanced Brewing and Distilling.

“To be located right next to the National Robotarium, the new centre will deliver real, tangible benefits for brewing and distilling and the wider supply chain that depends on them. This report confirms what we have long believed.

 “This assessment shows what our people already achieve. Graduates of our International Centre for Brewing and Distilling have founded nearly 30 of Scotland’s active brewing and distilling businesses.

“In 2024 to 2025 alone, those businesses added an estimated £79.4 million to the Scottish economy and supported the creation of 520 jobs. That is an outstanding track record that exemplifies what universities can deliver through research and innovation for economic growth and employment.

“Our vision is firmly grounded in economic reality. Now we can build a new era for brewing and distilling, driven by sustainability and excellence, and keep Scotland where it belongs: a global leader in both.”

Ewan Andrew, Diageo’s President Global Supply Chain & Procurement and Chief Sustainability Officer and co-chair of Heriot-Watt’s CABD fundraising committee, said:  “What this economic impact assessment demonstrates is the potential value to Scotland and the UK that Heriot-Watt University can deliver with a commitment from government to back this new world-class facility.

“Together, industry investment, philanthropy, government and academic excellence can build resilience and growth opportunities at a speed and scale none of us can achieve alone.”

Shona Glenn, Director at BiGGAR Economics, said: “The ICBD has played a critical role in sustaining Scotland’s brewing and distilling sector for nearly 40 years by providing a pipeline of talent and steady stream of innovative new enterprises.

“However, the Centre’s facilities and equipment are no longer fit for purpose and lack of investment is increasingly hampering its ability to ensure the future success of the sector.

“The CABD would address this by providing a bespoke new facility designed to meet the research and development needs of the sector and facilitate industry wide collaboration.

“The new facility could enable a substantial uplift in research and innovation activity and ensure the talent pipeline needed to champion the future success of the industry can be maintained.”