Hops, Dreams, and Distinctive Schemes Dougal Sharp, founder and master brewer of Innis & Gunn, reveals the challenges and breakthroughs behind building one of the UK's most successful craft beer brands, all while navigating constant change and innovation in a dynamic industry.

Dougal Sharp shares the inspiration behind Scottish craft beer company Innis & Gunn, the obstacles he overcame, and how he transformed a passion for beer into a globally recognized brand that continues to push the boundaries of brewing.

What inspired you to start your business?
A love of beer and a passion for spreading the message of good beer!

Although my first job was in beer – sweeping the brewery floor at just 14 – I had no intention of pursuing a career in brewing. My path was heading in a completely different direction. However, when my dad's brewery burned down in 1994, I threw myself back into the business to help rebuild the site. This experience immersed me in the workings of the business and the brewing process. I even worked on re-developing the brewery's old recipes. I've been in the beer industry ever since.

Later, whisky company William Grant & Sons approached me to create a beer to season their oak casks before filling them with single malt whisky. The idea of a beer-finished whisky sounded delicious – it was different, innovative, and exciting.

That sparked another idea: what if a beer, matured in the best whisky casks, could stand alone as a product? I began experimenting, and the beer created as a result was a breakthrough – complex, rich, and full of flavours like toffee, vanilla, honey, and spice. It was everything I believed beer could be. From that moment, Innis & Gunn was born to bring this original beer and our unique ideas to the world.

What was your biggest challenge, and how did you overcome it?
There are so many challenges when you run a business,, but the biggest, on a day-to-day basis, is dealing with constant change. Change is the one constant, especially for a growth business. The market shifts around you continuously, and you have to adapt – not just to what happens, but ideally to get ahead of it. The uncertainty that comes with change doesn't suit everyone, but I thrive on it.

Launching lager in 2013 was one of our biggest challenges. We were entering a new category, competing against deeply entrenched players. Up until then, we had been a specialty beer business, both domestically and internationally. However, we kept hearing demand for a lager, so we listened. The challenge was ensuring it matched the quality of everything else we made. Today, our lager is Scotland's only premium lager in the UK's top five, and it even won Gold at the World Beer Awards, beating some of the biggest names in the industry.

The pandemic, of course, was a massive challenge for every business owner – it was adapt or die. Everything changed overnight. On-trade sales disappeared, so we pivoted to focus on online sales and supermarket stock. We launched online offers, enhanced our delivery system, and even introduced one-hour deliveries in central Scotland. That wouldn't fly today, but at the time, it was exactly what the market needed.

How did you secure your initial funding?
In the early days, we operated as a joint venture with William Grant & Sons, which provided the cash flow the business needed. When I bought the business out in 2008, I took a huge personal risk. I put my house on the line, and so did my dad. We borrowed money and used all our savings to fund the buyout. Thankfully, we repaid all the debt within a year.

Since then, we've used a variety of funding sources, including working with banks, three major crowdfunding campaigns (raising two tranches of around £3 million in equity), and a mini-bond.

In 2017, Ll Catterton acquired a stake in the business, providing another boost for our growth. We're always exploring new funding options to keep driving the business forward.

How do you handle failure or setbacks?
Failure is inevitable in business – you'll try things that don't work. The key is not to dwell on setbacks but to learn from them, adapt, and move on.

For example, in 2012, we launched Melville's, a fruit lager made with cold-pressed Scottish raspberries and strawberries. It was all-natural, tasted amazing, and won awards, but it was too early for the market. Fruity beers are so popular now, but at the time, it just didn't connect.

That experience taught us to focus on the Innis & Gunn brand, where we already had strong equity. Building a new brand takes significant investment, and we realised that effort was better spent strengthening what was already working.

What advice would you give to someone starting their own business?
Accept that there's no escaping it: starting a business will occupy your mind 24 hours a day. While there are many highs, you'll also face self-doubt, uncertainty, and fear. People often say leading a business is a lonely place, but having a great team makes all the difference. Surround yourself with people you trust – people who have your back.

One of the biggest lessons I've learned is to deal with "bad apples" quickly and fairly. A bad team dynamic can destroy your ability to compete. When you have the right team in place, the business thrives, and you can focus on the positives.

How do you stay motivated during tough times?
Fear is a great motivator – we've built something brilliant, and I don't want to mess it all up. But I'm also driven by the excitement of what's possible and the challenge of pushing the business forward.

It's a constant balance between fear and ambition that keeps me moving every single day. On top of that, I believe the beer industry is ripe for disruption. Homegrown beers made with great local ingredients deserve just as much recognition as imported beers. I want to make sure these beers have their moment in the spotlight – providing people with better-quality beer while supporting local communities and economies.

Share your tips for achieving success.
One of the biggest lessons I've learned is to "smell what's selling." Focus on what works – whether it's a product, a system, or a team – and double down on it.

For instance, our events business didn't exist three years ago, but now it's growing rapidly and is set to double next year. Events like Edinburgh Christmas and Hogmanay, Belladrum Festival, Celtic Connections, the Royal Highland Show, and the Edinburgh Festival Fringe, allow us to connect with consumers in a moment of goodwill. They're in high spirits, surrounded by loved ones, and our beer becomes part of that experience. That emotional connection is invaluable, and we'd be foolish not to lean into it.