Independent brewery BrewDog is reviving its Equity for Punks crowd-funding scheme to raise £4m to scale up production of its craft beers, develop its brewery and grow its craft bar division.
The move will help the company realise ambitious plans for growth, which include ramping up production to 500,000HL a year – a tenfold increase in throughput. Around 42,000 shares will be sold for £95 each, and the money raised used to fund investment in the company’s eco-brewery in Aberdeen. This will not only maximise under-utilised space but allow the company to build an “interactive brewery” open to the public, with a visitor centre, bar and restaurant on site.
“With demand currently exceeding supply by 35% we have both the space and demand to enable significant growth,” a company statement said. “These plans are going to help us to brew more beer and to share our passion for great craft beer with even more people.”
Turnover in 2013 is expected to reach £20m.
The investment would also be used to develop a hop-infused beer, Hop Head, and launch its new distilled beer, WattDickie, into international markets. Currently, the limited-edition spirit, which was unveiled last week, is available from the brewery’s 12 craft beer bars and online store.
BrewDog also has plans to extend its portfolio of craft bars. The brewery has opened 11 bars in the UK since 2010, and one in Stockholm, which is operated in conjunction with a local partner. It plans to roll out the concept in Brussels, Tokyo, Sao Paulo and New Delhi over the next 12 months, as well as founding two BrewDog-owned bars in Germany and the US. A further five sites have already been identified across the UK.
BrewDog co-founder James Watt said the company was the fastest-growing food and drink company in the UK thanks to almost 7,000 punk investors. “As we need funds for more growth plans, we never considered a bank or an investment group – it’s another opportunity for our customers to benefit from our growth directly,” he said.