Only craft brewery on 3 continentsā¦
Donāt get me wrongā¦ Iām a fan of their beers as much as the next person, but can/should they still call themselves a craft brewery at this point??
Only craft brewery on 3 continentsā¦
Donāt get me wrongā¦ Iām a fan of their beers as much as the next person, but can/should they still call themselves a craft brewery at this point??
Iām probably the worst person to ask this question; Iām a complete novice when it comes to this sector although the more I read, the more intriguing it is.
Googled craft brewery and stumbled across this:
Brewdogās CEO James Watt outlined on their forum earlier this year how he aims to achieve a Ā£5bn valuation in the next few years before a listing. (Sorry, couldnāt find a link).
If I recall correctly his plan was basically to expand their Scottish and American breweries and launch one in Australia, along with continuing with all the bar launches and product development theyāre renowned for. Their track record for achieving their goals is unmistakable and my trust in the management is in the ājust take my moneyā zone.
A lot of people will point at the lofty valuation as a reason not to invest. Ā£1.8bn to Ā£5bn is nothing compared to what other crowdfunding opportunities might promise (See: Monzo, Freetrade etc), however a lot of people wouldnāt invest in round 4 for this reason also, saying there wasnāt any upside about 5 ābagsā ago.
To me it feels like buying Ā£50 vouchers for Ā£23.50. The only catch is that you canāt redeem them for a few years, and a few doesnāt mean ā3ā - nobody knows how many years.
If youāre already a shareholder you can actually buy more shares privately for serious discounts on the price theyāre raising at now. Iāve been buying some more of these Ā£50 vouchers for about Ā£17 each. You can find sellers on their forum.
Normally Iād be worried about people selling way below market price, but in this case there is clearly a glut of sellers as the buyers from many years ago are all sitting on huge paper profits and are desperate to convert that paper into beer money. Itās easy to sell at a 30% discount when youāre taking a profit of hundreds or thousands of percent.
This is a great opportunity to help those people out and also add value to your portfolio.
Great post, Iāll drink to that
Only existing shareholders can buy the shares from other shareholders? Is it good idea to invest in few and buy from others later?
Itās a good idea cost-wise. Buying shares directly from BD entitles you to different perks, so if you are interested in those, get to the necessary amount of shares with BD, and then top-up by buying from other investors.
Also, share transfer is easier if you already have a shareholder number registered with Computershare, and you get it automatically when you buy 1st time from BrewDog.
Thank you.
Do you know what the number is?
Depends what level of discount you want and what additional perks. From their Benefits page:
Buying 2-19 shares will entitle you to 5% discount in our bars, and if you buy over 19 shares you will get 10%!
Online discount is double of that.
If you invest in several tranches, you get Reinvestment benefits, like free exclusive beer, extra discount vouchers, etc.
There are additional perks at higher investment levels, all listed here:
https://www.brewdog.com/equityforpunks/benefits
Just to give you a heads up weāve just written a blog post with a few pointers on valuing companies -
Please do let us know if you have any feedback
You can always rely on Bitcoin for a PR stunt
BrewDog campaign ended, now on Crowdcube some of the top UK breweries, Siren Craft Brew in private mode, and soon Verdant Brewing Co.
Your thoughts on them, and investing in craft breweries?
When buying BD and other shares of these types, is it an actual paper certificate you get or some sort of online share?
What valuation are they putting on Siren? They make truly excellent beer, but have found that crowdfunding brewers often give themselves wildly inflated valuations.
Last year Ā£2.82m revenue, Ā£200K ebitda, pre money valuation 11mil.
Seven Bro7thers are on Crowdcube too at the moment.
https://www.crowdcube.com/companies/seven-bro7hers-1/pitches/bgN1jZ
Is that five days left then itās on the wider CC community? Or five days left and theyāve not reached target?
Thanks. I own a couple of pubs and I am not that optimistic about the future of on-trade beer sales (pubs/bars/restaurants etc) without government action on business rates/discounted supermarket retailing of alcohol. Combined with this is the problem of the tied pub companies (Enterprise/Star Pubs etc) which restrict the available market for companies like Siren. Brewdog had massive early mover advantage - the only way to get a serious toe into the wider market now appears to tap into the distribution network of a major brewer (As Beavertown has just done, like many others before). If this is Sirenās exit plan, then an 11m valuation seems high but not horrendous - as mentioned earlier they make really good beer, and I could see them being an attractive acquisition target in a few years. Donāt know a lot about 7 brothers. Not massively impressed by their pitch but the perks for small investments seem great (if you like the beer) - invest Ā£100, get a Ā£100 voucher! Obviously the above is not advice one way or the other, just the thoughts of an embittered publican!
Took a while but Seven Bro7thers are into Over-funding now.