BrewDog seeks to froth up $50 million for expansion into US craft beer industry


Scottish brewer, BrewDog, is thirsty to delve into America’s craft beer market as it seeks $50 million of crowdfunding from US consumers. They urge investors to buy at least two shares for $47.50 each, from which they will not only receive a stake in the business, but also lifetime discounts in the worldwide 43 current existing BrewDog bars, free brewery tours and an invite to the annual general meeting, a festival of legendary beer, music and food.

With the expansion into the US firmly in its cross hairs, the announcement of a $50 million crowdfunding round by the leading craft brewery consequently marks its fifth iteration of its internationally-renowned investment programme, Equity for Punks. However, this will be the company’s first time at raising funds in the USA.

BrewDog is set up for rapid growth as it approaches the finishing stages of building its 100,ooo square foot brewery in Columbus, Ohio which is due to open later on this year and to produce its first beers by November. It will be set to feature a restaurant, taproom, retail space, visitor centre and beer garden for its visitors. The choice of location comes from BrewDog’s view of opportunity where they see a space in the market for them to grow.

The Scottish craft beer company has received funding from 46,000 investors and has made its mark in the industry from becoming one of the UK’s fastest growing food and drinks companies, since its launch in 2007. It’s rapid success is reflected in the first 6 months of 2016, where its UK sales climbed 93 per cent and BrewDog’s flagship beer, Punk IPA, is holding its position as the number one craft beer in the UK supermarkets, growing at +159 per cent across the UK Off Trade.

BrewDog co-founder James Watt commented: “Equity for Punks is a completely new business model in the States – it’s a revolution in small business finance. It’s an opportunity to enlist the people of the nation who changed the beer landscape forever, and invite them to join our existing 46,000-strong global investor community. We’re asking beer fans to help us change the face of small business finance in the US and spread our passion for great craft beer. Few companies have been so bold as to turn their backs on traditional financial institutions in favour of a brave new world of community-driven business. We’ve pioneered the Equity Punk model in the UK, and now we’re bringing our unconventional approach to alternative business stateside.”

Watt continues: “Equity for punks is about community. It is about connecting us with the people who love our beer. It is about building a new type of business. It is about taking beer lovers on this amazing journey with us. It is about working together to build something we can all be proud of. In 2010, we tore up convention, turned the traditional business model on its head and launched Equity for Punks, giving thousands of people a front row seat to the craft beer revolution in Europe. Now, we are coming to America. We are combining Europe’s leading brewer with the world’s biggest craft beer market. Expect fireworks.”