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A proposed £35 million brewing and distilling centre at Heriot-Watt University could boost Scotland's economy by more than £53 million a year and support almost 1,600 jobs within a decade, according to a new economic assessment.
The planned Centre for Advanced Brewing and Distilling (CABD) would build on the university's internationally recognised brewing and distilling school, which has trained generations of professionals for Scotland's whisky and beer industries.
Analysis by consultancy BiGGAR Economics found the facility could generate an additional £53.4m for the economy annually, taking its total economic impact to almost £325m in gross value added (GVA) each year within 10 years.
The report predicts the centre could support 1,570 jobs across Scotland, while helping the industry tackle challenges including net-zero targets, rising production costs and skills shortages.
Heriot-Watt is seeking £25.3m from industry and philanthropic backers, alongside £9.7m in public funding, to deliver the project. According to the assessment, every £1 of public investment would return £20.80 in economic benefit.
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The university said the new centre is needed because its current International Centre for Brewing and Distilling (ICBD), which has operated for almost 40 years, is struggling to meet growing demand from students and industry.
The report found that the ICBD generated an estimated £240.1m in GVA for Scotland and supported 1,180 jobs during 2024-25.
Scotland's alcohol sector currently employs around 60,000 people, including 14,000 workers in the distilling industry, accounting for more than 70% of UK distilling jobs.
The proposed facility would house pilot brewing and distilling equipment, advanced research laboratories, carbon capture technology and renewable energy systems, allowing companies to test new production methods while developing lower-carbon processes.
Researchers believe the centre could play a key role in helping the sector reduce emissions, improve water efficiency and maintain competitiveness amid rising costs.
However, the report warns that failing to secure the investment could undermine the ICBD's ability to continue supporting one of Scotland's most important export industries.
Professor Chris Turney, deputy principal for research and innovation at Heriot-Watt, said the findings represented "a huge vote of confidence" in the university's plans.
He said ICBD graduates founded almost 30 active brewing and distilling businesses in Scotland, which contributed an estimated £79.4m to the economy and supported 520 jobs last year.
Professor Chris Turney, Deputy Principal of Research and Innovation at Heriot-Watt University, said: "To be located right next to the National Robotarium, the new centre will deliver real, tangible benefits for brewing and distilling and the wider supply chain that depends on them. This report confirms what we have long believed.
“Our vision is firmly grounded in economic reality. Now we can build a new era for brewing and distilling, driven by sustainability and excellence, and keep Scotland where it belongs: a global leader in both."
Ewan Andrew, Diageo's chief sustainability officer and co-chair of the CABD fundraising committee, said government backing for the project could help unlock wider industry investment and create long-term growth opportunities.
He said: "What this economic impact assessment demonstrates is the potential value to Scotland and the UK that Heriot-Watt University can deliver with a commitment from government to back this new world-class facility.
“Together, industry investment, philanthropy, government and academic excellence can build resilience and growth opportunities at a speed and scale none of us can achieve alone."
Shona Glenn, director at BiGGAR Economics, said the current facilities were "no longer fit for purpose" and warned that a lack of investment was increasingly restricting the centre's ability to support the industry's future development.
She said: “The CABD would address this by providing a bespoke new facility designed to meet the research and development needs of the sector and facilitate industry wide collaboration. The new facility could enable a substantial uplift in research and innovation activity and ensure the talent pipeline needed to champion the future success of the industry can be maintained.”