Campaign off to great start
BrewDog’s beer bond raises £1m overnight
The bond, which has a £500 minimum investment, is being run in partnership with Crowdcube. It will generate 7.5% interest with a capital sum returned biannually throughout the term of the bond.
It builds on the Aberdeenshire company’s first ‘Equity for Punks’ programme in 2009. The business model has proven a global success.
More than 50,000 people have invested in the BrewDog business, contributing more than £26m over six years.
Prospective investors will enjoy discounts in BrewDog bars and the online shop for the duration of the bond.
James Watt, co-founder of BrewDog said: “We’re serious about this craft beer crusade, and to keep getting great brews into the hands of as many people as possible means breaking new ground, searching out new territories, and conquering every single corner of the globe.
“We’ve been solidly profitable every year since 2008, and we’re on track to deliver EBITDA in excess of £6m in 2016.
“We’ve smashed some serious crowdfunding records to date, and this Bond offers an additional way for people to put their money where their mouth is and get an awesome return as well.”
Money raised from the Crowdcube bond initiative will go towards fuelling the company’s UK expansion, further enabling the business to meet growing demand from across the country and Europe.
Funds will also support BrewDog’s new 100,000 square foot brewery in Columbus, Ohio, which will be one of the most technologically advanced, environmentally friendly breweries in the world.
Development of a new sour beer facility in Aberdeenshire, and BrewDog’s distillery Lone Wolf will also be given a boost by the latest crowdfunding scheme.
Luke Lang, co-founder of Crowdcube, said: “BrewDog is at the cutting edge of crowdfunding, and we’re excited to be hosting the second round of bonds for the business, which is changing the beer scene one pint of Punk at a time.
“BrewDog’s raise on Crowdcube is off to a storming start with over £1m having been raised in the first 24 hours alone, it’s clear our 300,000-strong crowd have a taste for this trailblazing brewer.”
BrewDog has achieved an average annual growth rate of 69%, and an average annual operating profit growth of 112% over the last five years.
The company shipped the equivalent of 41 million bottles of craft beer in 2015 and has 50 global bars and venues.