Sovereign turns to cask production

AN East Lancashire company that helps British breweries capitalise on export markets has launched a new manufacturing division in China to produce steel casks for the UK market.

Blackburn-based Sovereign Beverage Company, which spent two years establishing its Chinese operation, has already supplied its first 20,000 casks to the Wolverhampton brewer Marstons. 

It has also secured advance orders for 100,000 casks from Bedfordshire-based Wells and Young and Suffolk’s Greene King.    

Sovereign’s main business is helping drinks groups develop their brands overseas, from registering products and winning supermarket listings to delivering the goods. It established a manufacturing site in China in response to demand from the UK’s brewing industry, who were looking to reduce the costs and lead times involved in cask production.

The firm works closely with brewers to design specific casks and then manages the manufacturing and delivery process with its Chinese supplier.    

Founder and managing director David Davies said: “We conducted extensive research in the Chinese market over a 24-month period before establishing a relationship with this particular supplier. 

“The first casks have been delivered into the trade and we are delighted with the quality of the product. We have also had enquiries from other brewing organisations and will be launching our steel keg proposition later in the year.”    

NatWest’s International trade finance team advised Sovereign on its Chinese venture including structuring the payment terms.