BrewDog launches £4m fundraising

ONE of Scotland’s largest brewers launched its second unconventional capital-raising exercise in as many years to bankroll the opening of a chain of bottle shops as it further diversify its business.

BrewDog cofounders James Watt and Martin Dickie arrive in the City of London in typically unorthodox fashion, driving past the Bank of England in a tank . Picture: Contributed

Founders of Ellon-based BrewDog, Martin Dickie and James Watt, revealed they are triggering a third round of their “Equity For Punks” scheme, with 42,000 shares being offered at £95 each to raise £4 million.

Their previous fundraising drew in £2.2m in 2011, with £1m of the latest cash going to expand its brewery, creating 30 jobs at the site to take the total up to 100 in Aberdeenshire and more than 200 across the UK.

Watt said his firm will spend another £1m opening a London “beer academy” early next year, at which the public will be able to learn about the brewing process alongside professionals.

A provisional site has been agreed in the trendy London area of Dalston.

Watt said a further £1m would be earmarked for American expansion next year, with the most-favoured location for one of its nascent chain of international bars being either New York or San Francisco.

A one-hour documentary about BrewDog and its US ambitions will be aired on the Esquire American television network in September.

The company – which opened a bar in Stockholm earlier this year, and has plans for bars in Sao Paulo, New Delhi, Tokyo and Rome in the next six to nine months – claims that the latest fundraising will be the “world’s biggest independent crowdfunding initiative”.

“With the help of almost 7,000 punk investors, BrewDog has become the fastest-growing food and drink company in the UK,” Watt said.

“As we need funds for more growth plans, we never considered a bank or an investment group – it is open to everyone, including our customers, to benefit from our growth directly.

“With Equity For Punks, beer fans are able to become part of a revolution – not just redefining beer in the UK, but shifting the balance of power away from the banks and back into the hands of the people.”

Watt hopes the first bottle shop will open in either Farringdon or Angel Islington in London by October, with up to five targeted nationwide over the next 12 to 18 months, including one in Glasgow.

“Our shops will only sell beer, our own beers and some of the best beers from around the world,” he said.

BrewDog has previously branded larger brewing rivals as “monolithic mega corporations peddling sub-standard insipid liquids”. Its own products included Punk India pale ale (IPA) and extra-strong brews such as Sink The Bismark and Tactical Nuclear Penguin.

In January, the company – which exports 60 per cent of its output – announced that its unaudited profits jumped to £600,000 in 2012 from £400,000 in 2011.

Turnover leapt 86 per cent to £11m, partly through opening of warehouse-style bars, which include outlets in Aberdeen, Edinburgh, Glasgow and London.