BrewDog has been one of the fastest growing food and drinks companies in the UK for the last six years and is the UK’s leading craft brewer, owning 2 breweries; one in Ellon, Scotland and one in Columbus, Ohio. BrewDog has 50 craft beer bars, and flagship beer Punk IPA is the no.1 craft beer in the UK supermarkets.
With over 50,000 Equity Punk investors worldwide, the company is currently raising on Crowdcube via a bond. Since last year’s bond raise, BrewDog has paid £150k to its investors through two re-payments (every 6 months).
BrewDog has raised over £20m via Equity for Punks over four rounds, why are you turning to Crowdcube for this latest Bond offering?
We’ve been challenging traditional business models for 5 years now, and the community we have garnered provides us with a committed audience of shareholders who have invested their money in our company, and who care about what we do. We have been profitable every year since 2008 and are on track to deliver EBITDA of approximately £6m in 2016. With the speed at which we are growing and ambition for a more accelerated pace over 2017, we’re aiming to grow our revenue by over 80%. This obviously requires a lot of investment; investment in people, investment in equipment, investment in infrastructure and investment in working capital. This bond will help us make these investments to drive our growth, as we continue on our mission to make other people as passionate about great craft beer as we are.
Why has BrewDog decided to raise finance through a bond rather than equity?
We’ve offered a series of opportunities to buy equity in our business over the past five years through our infamous Equity for Punks programme. As an Equity Punk, you get shares in our company as well as lifetime benefits, and you have the opportunity to sell your shares during our Trading Windows. However, with the Bond, we can offer people a way to invest in our company and see a steady return on their investment. Many of our Equity investors also hold bonds as they want to both own a piece of the company and also benefit from an annual return on their money.
Last year, you outlined what the future BrewDog projects would be (new product ranges, bars, a distillery, USA expansion etc). How are you performing against your projections?
Our American brewery is almost online, with the building now complete and the brew house & fermentation vessels on site. Once the equipment is dialled in, we’ll be looking to release our first beers in the first few months of 2017.We recently held a major recruitment drive as we look to build out our team in America, which will also be supported by some of our seasoned team from the UK hopping across to ensure our culture is entrenched in our Stateside business.
Our Sour Facility in Aberdeenshire is progressing nicely with work due to commence in the next few weeks so we can start creating amazing, funky beers to expand our offering.
Our bar division has also benefited from previous investment, and we opened our newest bars in Homerton, East London, and York in the past few weeks. More sites are pencilled to launch in early 2017.
What have been your top three highlights from the last year?
Seeing so many people invest in our craft beer business during Equity for Punks IV was astounding and has made such an incredible difference to our business. The AGM in April saw 6,000 people descend on Aberdeen for our legendary annual shareholder event, featuring business talks alongside beer, bands and awesome street food. We raised £19m during our latest Equity round which closed in April 2016.
We also held our first ever AGM at our new brewery in Ohio this year, too. Seeing so many people who are excited for us to land in Columbus was incredible and just amplified how awesome it will be when we release our first beer in early 2017.
Being named as one of the UK’s fastest growing businesses for five consecutive years was also an epic moment, breaking a record for the Sunday Times’ annual league table.
What’s next for BrewDog?
BrewDog is currently raising through a bond and overfunding, find out more and invest today.
Capital at risk. For bonds, interest payments are pre-tax and not guaranteed and your investment will not be covered by the Financial Services Compensation Scheme. Approved as a financial promotion by Crowdcube Capital which is authorised and regulated by the Financial Conduct Authority (no. 650205).