Crowdfunding Legends: ‘BrewDog: The spell of Craft Beer’
This week marks five months since the craft brewery Dougall’s made one of the most relevant capital rounds via crowfunding in Spain through the Fellow Funders platform; 1.25 billion euros in just 6 hours.
This company, founded by Andrew Dougall and Kike Cacidedo, and with its factory located in Liérganes (Cantabria); began rolling in 2006 when Spain was a real beer desert and since 2012 has been experiencing average annual growth of 35% in production until reaching 350,000 liters in 2018.
Thanks to the capital injection, in which Dougall’s gave entry to its most loyal customers, the company will increase its installed capacity reaching a production of up to 1 million liters. In addition, part of the funds will be used to build a restoration space in an environment surrounded by nature where it can welcome its customers and the general public.
Digging through the history of Equity Crowdfunding, we identified a case that, bridging the gap in size, could invite Dougall’s fans and shareholders to dream. Back in 2007, two young Scots started producing beer in an old building in Fraserburgh. Refilling bottles by hand and selling in local markets with their old van, they made their way, looking for each consumer to be as interested in craft beer as they did.
A year later, they managed to jump to fame with BrewDog, the highest ranking beer in the UK, becoming in just 2 years the second independent brewery in the country, starting exports to Japan, America and Sweden. In fact, in 2009 its craft beer, Punk IPA, was crowned as the best-selling IPA in Scandinavia.
From that moment, the company decided to finance its growth through Equity Crowdfunding with six rounds called “Equity for Punks” between 2009 and 2019 in which no less than 123,777 investors contributed capital worth 74 million Pounds Sterling, marking the record of all time in this type of financing.
All these milestones would be endorsed through the entry into the company of the TSG Consumer Partners fund, which acquired 22% of BrewDog for £217M, attributing to the company an implied valuation of £986MM. In just over 10 years, BrewDog has gone from 2 to 1247 employees, with a turnover of 172 MM pounds in 2018, being a reference on social networks and one of the brands with the greatest projection in the United Kingdom.
Although comparisons may be odious, it is cases such as Brew Dogs, and Dougall´s on a smaller scale, that as investors and followers of a brand reaffirm us about the benefits of Crowdfunding as a driver of value-generating business projects.