Funding worth over £200,000 has enabled Jarrow Brewery to open a new 5,000 sq ft, 40 barrel plant on the Bede Industrial Estate.
The £500,000 facility will have the capacity to produce 72,000 pints a week - five times more than the brewery has been able to manufacture previously.
It will also create five new jobs at the £2m turnover company, which currently employs 60 people, with a further 10 expected over the next three years.
The business recently received £80,000 of funding from Reward Capital and £140,000 through the Government-backed Regional Growth Fund, as well as private funding.
Jess McConnell, who established the firm with his wife Alison in 2002, said: “Our beers have an excellent reputation and a loyal band of followers so we’re in an excellent position to aggressively extend our brand and increase our turnover.”
Partner at Reward, Dave Jones, said: “Jarrow Brewery is a fast-growing family-owned business but it needed Reward’s help to make its new brewing facility a reality. We were absolutely delighted to help the company continue its expansion.”