Scottish craft brewer Innis & Gunn has today launched an equity crowdfunding campaign on Crowdcube, as it seeks to raise £1 million in return for 2% equity.
The AdventureCapital campaign values the company at £50 million, based on group turnover of £12.5 million in 2015 – up 36% on 2012.
Innis & Gunn intends to double its turnover to £25 million over the next three years, and the capital raised from investors will be used to accelerate Innis & Gunn’s ‘immediate growth priorities’ – including opening four additional Beer Kitchens, the brand’s concept of bars and restaurants, during 2017.
It will also expand beer production at the recently acquired Inveralmond Brewery in Perth, Scotland, now to be named the Innis & Gunn Brewery. Production volume is forecast to triple in the next two years to 30,000 hectolitres.
And it will install a barrel ageing hall and new filtration technology that will expand the development of new flavours and innovative brewing processes.
The minimum investment is £10. As part of AdventureCapital, Innis & Gunn’s employees were the first to be given shares in the business.
Innis & Gunn founder and master brewer Dougal Gunn Sharp claimed that the funding round was testament to how far the craft beer sector had come.
He said: “When we started in 2003, the craft beer scene in the UK was virtually non-existent. Through perseverance, hard work, and outstanding beer, we have been able to play a key role in spearheading the growth of the movement in the UK and in turn build a successful international business selling our beers in over 20 markets.
“We have remained steadfast in our mission to expand the possibilities of what beer can be by pioneering innovative methods of imparting flavour.
Dougal Gunn Sharp has seen the craft beer sector grow from virtually nothing.
“Consumer tastes are changing. Beer drinkers are becoming more discerning about what they drink, and insipid mass produced beers are losing favour with a broad base of consumers who are looking for more diverse and unique flavours. Despite this, craft beer still accounts for a small fraction of the beer consumed annually. This means we have substantial opportunities for growth.
“With AdventureCapital, we are building a community of like-minded, passionate beer lovers who care deeply about quality, innovation, flavour and integrity. We can’t wait to begin the next chapter of our journey with them.”
AdventureCapital follows a year and a half after rival Scots brewer BrewDog launched its most ambitious crowdfunding campaign ever, seeking £25 million as part of its Equity for Punks programme. That share offering valued the company at more than £283 million, based on turnover in 2014 of £29.6 million.
Since its foundation in 2003, Innis & Gunn has become one of the UK’s most successful craft beer businesses and reported continued year-on-year volume and sales growth. Available in over 25 countries, it is the second biggest craft beer brand in the UK off-trade, the second most imported ale brand in Sweden and the best-selling British bottled beer brand in Canada. It also sells 2.5 million bottles a year in the US.
In May last year, FoodBev reported that Innis & Gunn had issued a £3 million ‘mini bond’ to help finance a new brewery in Scotland. Its four-year, initial fixed-term mini-bond offered 7.25% gross interest for investments starting at £500, with investors able to opt for returns in the form of cash or so-called BeerBucks, which boast an improved interest rate of 9% and can be redeemed as payment for Innis & Gunn beers from its online store.
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