Scottish brewer BrewDog has today announced a new crowdfunding scheme to raise £10 million to support its global expansion including 15 more craft beer bars in the UK.
Building on the £41 million raised through its Equity for Punks scheme since 2009, the latest round has the potential to be extended to £50million through the release of new shares.
The initial target raised of £10 million will be used to build a new brewhouse at its Ellon brewery in Aberdeenshire to help fulfil volume demand across the UK and the rest of Europe.
Further investment will be used to develop its first sour beer facility which will launch later this year, allowing BrewDog to create fermented beer styles.
Any funds raised above its initial target up to a maximum of £50 million will support accelerated growth across the global business including pouring £10 million into opening a new brewery in Asia and £5 million into opening one in Australia.
It will invest £3 million into its BrewDog bars around the UK, with plans to open 15 new bars in 2018, including four brewpub locations. The group has expanded to 47 bars around the world after opening its 30th UK bar in Oxford last month (pictured).
BrewDog is marking the launch by invading the City of London with a giant 17ft wooden “Trojan Dog”, filled with its flagship beer, Punk IPA – its metaphor for “the invasion of the corporate world with a new model of business founded in community and passion”.
As well as signalling the launch of Equity for Punks V, the giant dog will dispense Punk IPA to give potential investors a taste of what is to come.
The initiative will run for an initial three months, closing on January 15, 2018. Shares will cost £23.75 each and be issued in blocks of two, with a minimum investment of two shares for £47.50. Click here for details and the prospectus.
BrewDog co-founder James Watt said: “The latest round of Equity for Punks will make us the biggest equity-crowdfunded business of all time, having already raised over £41 million from a community of tens of thousands of misfits, forging a new kind of business model founded on craft, community and conscience.
“Our Equity Punk investors haven’t just supported the growth of an organisation now valued at over £1 billion, they have inspired the creation of a model that will give away 20% of its profits to its team and charitable causes via our pioneering Unicorn Fund.
“Equity for Punks V signals a tipping point: a point when the many overturn the few, when purpose overtakes profit, when the fuse is lit on the old order of businesses already struggling to come to terms with a world that demands more from business.
“Our Trojan dog is a reminder of the awesome power of people to change the world, with the crowdfunding revolution delivering a stark wake-up call to a broken system that represents a tiny group of fat cats.
“It’s a symbol of the 50,000 investors who helped transform BrewDog from two humans and a dog into a £1 billion business challenging the status quo at every turn. Crowdfunding is no longer alternative business, it is good business – driven by passion, energy and community.”
BrewDog’s success has seen its value increase by 2,765% since 2010.
James adds: “Investing into BrewDog isn’t just about seeing the value of your shares increase much faster than they would on the FTSE, it’s about joining a global community with a purpose. From receiving awesome money-can’t-buy benefits to being part of the biggest community-fuelled crowdfunded charity contribution in history, being an Equity Punk is about being part of something with the potential to change the world.”