And finally…Brewdog’s $50m American invasion

Irreverent Scottish brewer and crowdfuning pioneer, BrewDog is again taking matters into its own hands in its efforts to conquer America.

The Aberdeenshire-based craft beer business has announced a fresh $50 million (£38 million) crowdfunding round marking the fifth iteration of its Equity for Punks investment vehicle and the first time it has raised funds in the US.

The move sees the firm attempting to break its own equity crowdfunding world record of $35 million (£19 million) that it raised as a result of its most recent drive, which, despite missing its £25m target, became the world’s largest ever crowdfunding investment.

No other business worldwide has acquired so many investors and capital through the funding model.

The Ellon-headquartered business used the latest cash injection to increase capacity at its brewery in the North East town to one million hectolitres and has now cast its gaze across the Atlantic following an amendment to it piece of American legistlation.

Cofounder James Watt says Brewdog can move on the American market by utilising an amendment to America’s Jobs (jumpstart our business start-ups) Act passed by the Securities and Exchange Commission (SEC). Regulation A+ of Title IV of the Jobs Act enables small businesses to sell up to $50m in securities in a 12-month period.

Mr Watt said: “Equity for Punks is a completely new business model in the States. It is a revolution in small business finance. It’s an opportunity to enlist the people of the nation that changed the beer landscape forever, and invite them to join our existing 46,000-strong global investor community and help us change the face of small business finance in the US as we share 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.”

A stake in the business, which employs more than 600 people and operates 44 bars worldwide, across 10 countries from Scotland to Stockholm and as far afield as Sao Paulo and Tokyo, allows investors to receive lifetime discounts in BrewDog bars, free brewery tours and an invite to the annual general meeting (AGM), “a festival of legendary beer, music and food”.

MrWatt continued: “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.”

Last year BrewDog saw pre-tax profits fall to £3.48m from £3.65m in the prior year, as its revenues swelled 50 per cent to £44.7m. In announcing the US package, BrewDog revealed UK sales have increased by 93 per cent for the first six months of 2016.

The next phase of its expansion is the opening of a 100,000 square foot brewery in Columbus, Ohio, which will fuel BrewDog’s American expansion and feature a restaurant, taproom, retail space, visitor center and beer garden.