Twelve months after opening its Australian brewery, Scotland-based international craft beer business BrewDog has launched an Australian equity crowdfunding raise.

The crowdfunding campaign, which seeks to raise up to $10 million for 10% of the business, values the Australian operation at $100 million. The minimum raise for the offer is $300,000 with shares costing $100.

The investment offer opens today and runs until 11th February 2021 offering shares in BrewDog Group Australia Pty Ltd. BrewDog Australia has two classes of share on issue, Class A voting shares and Class B non-voting shares.

Class A shares comprise 90% of the company’s shares and are owned by parent company BrewDog PLC. The shares on offer under the equity raise are the Class B shares comprising 10% of the Australian company.

“…as such, they [the majority Class A shares] can vote decisions through at general meetings, even those which investors in the Offer, as minority shareholders might disagree,” the offer document notes.

The prospectus notes BrewDog’s policy is not to pay dividends, however shares in the Australian company will entitle investors, together with a plus one, to pay to attend the ‘first-ever’ Australian AGM. Other benefits include a free beer on a shareholders birthday and 5% discount in all BrewDog bars.

Investors will also get their own tree in the BrewDog forest, where the brewer plans to plant one million trees by 2022.

Additional benefits accrue to higher levels of investment.

Application of funds

BrewDog recently announced plans to open breweries in Perth, Melbourne, Sydney and Auckland and the prospectus notes that 10 per cent of the funds raised will be applied to this project. The brewer also outlined plans to build a beer hotel in Brisbane.

The brewer will also apply 15% of the funds to install a canning line, which it describes as a project to ‘future-proof’ its products.

“Cans are infinitely recyclable, and by investing in a new canning line, we can increase the number of beers we package in this sustainable material,” the prospectus notes.

The company will also apply funds to invest in its infrastructure and people and build a refrigerated distribution program.

Business valuation

With 100,000 Class B shares or 10 per cent of the local company on offer at $100 a piece, BrewDog values the Australian business at $100 million. In the year ending 31 October 2020, BrewDog Australia reported revenues of $5.3 million, with a loss of $1.7 million.

In its last full-year accounts, to 31 December 2019, parent company BrewDog PLC reported revenue of £215 million (AUD380 million) with an operating profit of £3.7 million.

By comparison, in the year to 30 June 2020, Australia’s largest ‘independent’ brewery, Coopers, reported revenue of AUD274 million with an after-tax profit of AUD24 million. The company recently conducted a share buyback that valued the business at AUD 358 million.

BrewDog’s share valuations have often been subject to criticism, with the cost of shares offered to the company’s Equity Punks being valued at significant premiums to the prices paid by corporate investors. A recent UK Equity Punk raise valued the business at a ‘staggering’ £1.85 billion (AUD 3.2 billion).

With many equity crowdfunding opportunities presenting an investment that is often illiquid, and not subject to a market valuation, equity crowdfunding is generally seen as a way to support businesses that investors have an emotional connection with. BrewDog has managed to raise more than AUD154 million globally through more than 145,000 Equity Punks.

Full details of the BrewDog media release below.

Media Release

Articles published under the media release byline are news produced by the relevant business and remain unedited by Brews News. This media release was circulated by BrewDog.

Brewdog, the world’s first carbon negative beer business, launches equity for punks tomorrow in australia

The pioneering crowdfunding initiative where Aussie beer lovers can invest in BrewDog’s expansion Down Under and a more sustainable future for beer and the planet

The perfect planet-loving Christmas gift for beer geeks

Craft beer trailblazer BrewDog has launched its pioneering crowdfunding initiative, Equity for Punks Tomorrow, in Australia for the first time. BrewDog was born with the aim to revolutionise the beer industry and redefine beer-drinking culture. The first carbon-negative beer business in the world, BrewDog is expanding its crew of craft beer punks Down Under.

Equity for Punks Tomorrow is a radically different type of share offering that sets a new precedent for planet-friendly business and gives Aussie beer lovers the opportunity to shape the future of the company in Australia, with plans to open new flagship BrewDog bars in Sydney, Melbourne, Brisbane and Perth by the end of 2021.

With an initial target of $300,000 and a maximum raise of $10 million, every single dollar raised will be used to sustainably fuel BrewDog’s growth in Australia and New Zealand and fund investment in groundbreaking, high-impact green infrastructure that will help build a more sustainable future for us all. After all, there is no point making beer, if we don’t have a planet to drink it on. Investments start from $100 and can be made through the OnMarket platform at www.brewdog.com/efpoz until 11 February 2021. Full details can be found in the Offer Information Statement.

Furthermore, Equity Punks can refer their friends to invest and rack up points that unlock prizes, as well as choosing to gift shares to fellow beer geeks for the perfect planet-loving present in the lead up to Christmas.

BrewDog’s Co-Founder, James Watt, said: “We believe carbon is our problem – the time to act is now, and it has never been more urgent. Equity For Punks Tomorrow is a critical part of the next evolution of BrewDog which will allow us to fund our sustainability plans by uniting investors across the globe to make a change today to ensure we have a planet to brew beer on tomorrow. We believe that the most sustainable businesses are going to be the ones who will prosper long term, so by investing heavily in sustainability, we believe we can grow strongly and add significant value to people’s investments too. All whilst doing great things for the planet and achieving some of our most ambitious projects to date.”

BrewDog’s pioneering crowdfunding initiative, Equity for Punks, was born in 2010. Turning the traditional business model on its head, the programme gave thousands of people a front row seat to the craft beer revolution. It has since amassed a community of over 150,000 Equity Punk investors who are at the heart and soul of the business.

BrewDog opened the doors to its first Australian brewery and taproom, DogTap, in Brisbane last November, and has been firmly planting its roots in the vibrant Brisbane beer scene ever since. The brewery started brewing its firstheadliner beers on Australian soil in August and has been purpose built for rapid growth with plenty of space available on the site ready for expansion. Aussie-brewed BrewDog beer is currently available nationwide on the recently launched online shop and BrewDog fans across the country can enjoy freshly-brewed BrewDog beer dispatched the next working day.

Due to the success seen in Brisbane so far and high demand from thirsty BrewDog fans around the country, the craft brewer is on the prowl for new sites and is set to expand its presence Down Under, opening new flagship BrewDog bars in Sydney, Melbourne and Brisbane by end of 2021. More details on this to follow in the New Year.

Equity for Punks Tomorrow

Equity for Punks Tomorrow will accelerate the implementation of green infrastructure and technology across BrewDog’s Australian operations including:

• BrewDog Tomorrow Bars: BrewDog wants to create a template for the future and open the world’s most sustainable bars. Zero waste, carbon neutral, and a depot for closed loop delivery solutions and plan to launch a series of these craft beer venues across Brisbane.
• Future-proof products: Investing in sustainable ways to brew and package beers and new products.
• Build a refrigerated distribution programme: Investing in electric, refrigerated distribution across Australia to get our beer to you in the most sustainable, fresh way possible.
• Build a beer hotel in Brisbane: Following on from the success of The DogHouse in Columbus Ohio, build a new eco-hotel in Brisbane that also caters for dogs.
• Powering a sustainable brewing business: Installation of solar panels on the roof of the Brisbane brewery to make the most of the 130+ sunny days Brisbane sees every year and reduce the need for less-sustainable energy.
• Investment in infrastructure and people: The ability to fast-track progress and reach all of Australia fast is totally reliant on the stability of the infrastructure, and the ability of BrewDog’s people.

Core Shareholder Benefits:

• When buying shares in Equity for Punks, investors will get their own tree dedicated to them in the BrewDog forest, where the brewer plans to plant one million trees by 2022. They will also get access to a whole raft of sustainable benefits from free beers on your birthday, to sustainably sourced T-shirts and accessories, through to exclusive events that celebrate BrewDog’s environmental efforts.

Benefits include:

• AGM invite with +1 to the first ever Australian AGM – an annual beer, food and music festival
• A free beer on your birthday
• 5% discount in all BrewDog bars
• Invites to brew with BrewDog on Beatnik brew days
• Exclusive access to new beers
• A copy of BrewDog’s book, Craft Beer for the People
• Free brewery tours around the Brisbane facility