Heineken acquires minor £40m stake in Beavertown

London-based beer brand Beavertown Brewery, has sold a minor stake in its business to Heineken for £40m.

Heineken has said that the investment will allow Beavertown to build a new 450,000hl brewery and visitor centre in London.

“We love what they’re doing and are excited to be able to help them do more,” Heineken said in a statement. “Our minority investment means they can make their dream of Beaverworld a reality.”

The Dutch brewing conglomerate has previously acquired Brixton Brewery and Lagunitas and already owns eight international brands including Tiger and Amstel.

According to Jo Pritchard, legal director at UK law firm TLT, Heineken's latest investment is a tactic to stay in touch with the craft beer movement which has changed the shape of the beer industry over the past decade.

"Consumer appetite for craft beer continues unabated, particularly among younger drinkers. Brands like Heineken want to stay in touch with and relevant to this audience, and buying into a brand and brewery that's on its way up is a great way of achieving this," said Pritchard.

"For a smaller brewery like Beavertown, investments like this can turn its ambitions into reality. With improved capacity and distribution networks, the brews can reach a wider audience and help support business growth. This level of investment would be very hard won from any other source.

"Before scaling-up, brewers need to get their house in order. That means making sure the brews are consistent and making sure they have a clear brand narrative that is well defined and well protected."

Beavertown has also announced plans with Premier League football team Tottenham Hotspur to build a microbrewery within the club’s new stadium.

Logan Plant, founder of Beavertown and son of Led Zeppelin lead singer Robert Plant, said: “The opportunity to work with Tottenham Hotspur to deliver the Premier League’s first microbrewery is something of which we are immensely proud…

“The ambition the club has for its new stadium is mind-blowing and we are thrilled to play a part in helping them deliver their vision of an unparalleled stadium experience.”

The brand’s Neck Oil and Beavertown x Spurs expressions will be served throughout the new stadium.