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The smaller brewery will be at the company’s town centre venue in Faversham with the investment, which the business described as ‘major’, taking place over the next three years.
The plans aim to improve efficiency, sustainability and quality while supporting future innovation and development.
This comes as Shepherd Neame, which operates 280 pubs, revealed it will focus on its own beer brands and exit large third-party contract brewing.
Flagship brands including Spitfire, Bishops Finger and Whitstable Bay will be available from the new facility alongside successful recent launches.
With the focus being on its own brands, the firm’s exclusive licence to brew and distribute Singha Lager will terminate at the end of April 2027.
The new brewing model will look to combine in-house production with certain outsourced functions such as small packaging.
Investment funding
It will be within the existing Bottling Hall, which will shut in the middle of next year to be adapted for its new purpose.
Furthermore, the investment is expected to be self-funded through the sale of non-core property with Shepherd Neame reducing its town centre footprint to the Heritage Core, on the ‘island’ of buildings behind Court Street.
Building is predicted to take two years with a target completion date of the end of 2029 with brewing operations continuing in their current location until then.
Shepherd Neame will also bring forward a 10-year development vision for the retained site that includes offices, retail, a pub, events and hospitality space, an enhanced visitor experience and new open space Brewery Square.
Elsewhere, the business reported ‘good underlying momentum’ in its pub estate with like-for-like retail sales up 6.4% for the 17 weeks to 24 October and like-for-like income growth of 1.1% in its tenanted estate to 26 September.
For the 17 weeks to 24 October, total beer volume dropped by 0.6% and own beer volume also fell by 2.2%.
Great opportunity
This comes ahead of the company’s AGM taking place tomorrow (Friday 30 October).
Chief executive Jonathan Neame said: “This plan is a great opportunity to modernise and evolve our operations and to create a unique brand home with brewing at its heart.
“The new brewery, which will be self-funded, will be adapted to the needs of tomorrow and will be efficient and cost-effective.
“Combined with sustained investment in our pub business, it will enable us to drive higher returns for the business and its shareholders.
“These steps represent a major commitment to brewing, to Faversham and to our heritage in beer, and our belief in an exciting future for the company, in the next phase of its development.”
Just last month (September), Neame said the business had seen “very, very strong” performance from its pubs, despite pressure in Brewing and Brands.
Earlier this year, the Kent business announced it was transforming the basement of historic Jamaica Wine House in the City of London into a new cocktail and events venue.
The Jamaica Clubhouse opened in September and replaced Todd’s Wine Bar, beneath the pub in St Michael’s Alley, near Monument.
