Start-Up Drinks Lab's tips for business success

9 Oct 2023 | 7 minute read

Two Scots entrepreneurs formed The Start-Up Drinks Lab to tap into a market opportunity for small-batch drinks manufacturing. Here we share 11 tips from their journey - from startup to successful co-operative.

1. Spot a gap in the market

That's exactly what two Scots entrepreneurs, Hannah Fisher and Craig Strachan, did.

The Scottish drinks market has seen a significant increase in demand for craft beers and artisan spirits in recent years. There’s also a growing consumer trend for alcohol-free alternatives, reflecting healthier lifestyle choices and the introduction of stricter drink-driving laws.

Responding to this trend, Hannah and Craig developed their own startup soft-drinks brands. However, they both discovered there was nowhere locally to bottle their low-volume runs. Spotting this gap in the market, they set up The Start-Up Drinks Lab to provide small-batch bottling facilities to other craft drinks producers - a service previously unavailable in Scotland.

2. Finding a partner really helps

Hannah and Craig met through a Scottish business incubator, Entrepreneurial Spark, and found they had the same business challenge. A challenge that was putting product quality, competitiveness and growth potential at risk. 

Working together identified a cost effective, innovative solution.

With very different backgrounds they were able to draw on each others talents and experience. Hannah had a wealth of drinks marketing experience, working for Tennents, Beam Suntory and Morrison Bowmore. While ICAS Chartered Accountant, Craig had left the industry to set up his own drinks brand.

Their collaboration has not only succeeded in meeting its objectives, it's also resulted in the creation of an innovative and unique Scottish business, turning over £300,000 plus in its first year.

3. Identify and solve a business pain point

The first challenge they shared when launching their drink brands was the inability to bottle their product in small numbers.

They quickly realised that Scotland lacked facilities for creating and distributing new drinks products. This was a major drawback, both for themselves and other Scottish drinks entrepreneurs.

"It was clear we weren’t alone in finding Scotland’s lack of small-scale production facilities was a massive problem. Many great Scottish brands were being forced to go down South, losing that all-important 'Made in Scotland' marketing asset, pushing costs up, and making them less competitive," Hannah explained.

So, they decided to set one up together and provide services for other drinks startups.

4. Stay focused, be committed

Setting up and scaling a business requires continual innovation and hard work. Helping others has definitely been part of the driving force behind The Start-Up Drinks Lab.

"We’re committed to supporting Scotland and Scottish produce by giving producers an accessible, affordable platform," said Hannah.

The Start-Up Drinks Lab was founded in 2017 when Hannah and Craig formalised their collaboration as a consortium co-operative. They opened the doors of their production facility in Port Glasgow in May 2018.

5. Choose the right business model

Hannah and Craig believe its formation as a consortium co-operative has been key to the success of The Start-Up Drinks Lab.

Consortium co-operatives are set up when businesses come together for a shared purpose to buy or sell in scale, manufacture or market more efficiently, share facilities, or jointly bid for contracts. By collaborating, businesses can reduce costs, share risks, and create new platforms for growth.

The biggest benefits of working with others, Hannah feels, is sharing experiences and learning to overcome challenges.

"By forming our consortium co-op, we brought together our different and complementary skills as well as our shared values and vision for a manufacturing facility that directly benefits small-to-medium sized producers," explained Hannah.

"Regardless of business type and industry, the challenges are the same, therefore the approach to problem solving can be shared. It opens networks – the co-operative can recommend trusted, fit-for-purpose suppliers," she added.

6. Get the right advice and support

The entrepreneurial pair have always taken advantage of Scottish business support. Right from the very beginning they knew how important this was.

Hannah and Craig’s efforts to set up The Start-Up Drinks Lab received a major funding boost when they won our Collaboration Prize in 2016, after successfully pitching their plans and potential to grow the business.

And thanks to a package of support provided by our specialists, Co-operative Development Scotland, Hannah and Craig were able to bring their plans to fruition - to set up their consortium co-operative, rent their Port Glasgow facility and fit it out to a fully operational specification.

"The support of Co-operative Development Scotland provided validation of our original business concept and initial proposals," said Hannah. "At that time, the support was transformational – enabling us to take our plans to the next level and accelerate our launch. Together we’ve been able to create something truly unique and far beyond what we could have hoped to achieve on our own."