25.08.2011

5 Great Reasons to invest in BrewDog

5 Great Reasons to invest in BrewDog

Invest in BrewDog at www.brewdog.com/equityforpunks

Equity for Punks II has been a big hit so far. This innovative and alternative business model has received huge media and critical acclaim and so far over 4,000 new shareholders have invested over £1.25m into BrewDog plc. Here are 5 great reasons to join them:

1) Our  Growth

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As you will see from the chart above, we have experienced phenomenal growth since we started our business with a small bank loan and a big mission in 2007. If we had the capacity to keep up with the demand for our beers we would be growing even faster. This is your chance to buy into our business, share in our success and benefit financially from our future growth through dividends and an increase in the value of your shareholding.

In terms of valuation, we are selling 90,000 shares which equates to 8% of the company, valuing our total company (and all group assets) currently at £26m. We are currently on track to have profits of £1m for 2011. Drinks companies such as Diago (19) and Fullers (16) trade for a P/E (price to earnings ratio) of 16-20.  On a P/E ratio of 20 and including our strong asset base, we have been valued at £26m. However Fullers is only growing at 10% and Diego has experienced negative growth over the last 3 years : BrewDog is growing at 100%+ year on year – and that is all set to continue.  So you get a company growing at 100%+ year on year at a similar pricing ratio to companies which are hardly growing at all making Equity for Punks a very healthy medium-long term investment.

Equity for Punks has been endorsed and recommended by The Times Financial Editor, Patrick Hosking, Daily Mail's City News Editor - Ben Griffiths, The Scotsman’s Business Editor Erikka Askeland and many others.

2) Our Bar Division

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Despite being launched less than 12 months ago, our bar division is already operating 3 locations with 2 sites currently being renovated and a further 5 planned for 2012. The current bars are performing very strongly financially as well as providing more locations for investors to claim their discount.  By buying into BrewDog, you are also buying into our bar division.

3) Anchor & our route into the US

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The US is currently by far the biggest and fastest growing craft beer market in the world, with over 10 million barrels of craft beer sold there in 2010. Anchor in San Francisco has been brewing since 1896 and is widely credited as starting the US craft beer revolution under the visionary Fritz Maytag.

BrewDog plc owns 5.25% of Anchor Brewers and Distillers, this stake is currently valued at over £1.8m. So by investing in BrewDog you are also buying part of America’s original craft brewery. Which is kinda cool.

A huge advantage of our partnership with Anchor is that it gives us unparallel access to the world’s best craft beer market.  Anchor and their national sales team now handle the import, sales and distribution of our beers in the US. This means we have a fantastic platform for growth and a great sales team behind our beers in this key long term market.

4) Our People

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We are fortunate enough to have Keith Greggor and Tony Foglio actively involved in managing our company . Keith and Tony have over 70 years combined experience at the absolute top level of the drinks industry and a huge history of insane success to boot. Most recently they turned Skyy Vodka into a billion dollar brand and are confident they can help James and Martin do some pretty exciting things with BrewDog.

Martin and I (James) set up BrewDog with a simple mission: to make other people as passionate about great beer as we are.  Since 2007, we have been named Scottish Young Entrepreneur of the Year 2007, Scottish Entrepreneur of the Year 2008 bagged loads more business awards as well as 2 gold medals at the last 2 World Beer Cups.  We also like wearing hats and have never raised our voice to a woman or punished an animal with a stick.

From our management team which combines youth and experience, to our rock ‘n roll brewers and our evangelically passionate bar scamps, the team we have is a key asset of our company and a great reason to invest.

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5) The Discount and AGM!

The Equity Punks BrewDay - May 2011

By investing in BrewDog you entitle yourself to a 20% lifetime discount on our online shop and 5% lifetime discount in all of our BrewDog Bars. In addition you get an invitation to our (soon to be legendary) AGM and a very cool shareholder card.

The average purchase on our online shop is £50 – and it does not take long to get a 100% return on your investment.  And the discount is just a little bonus we want to give our shareholders.

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Some More Reasons

And as if all that wasn’t enough, here are some other good reasons to invest:

  • Exclusive first options on all our special and limited edition beers
  • Being able to participate in our annual by shareholders, for shareholders beer.
  • Having your say in how the company is run
  • Sell and trade your shares on www.equitypunks.com or at a potential later listing
  • A welcome pack with some killer, shareholder only BrewDog merchandise including your ID card.
  • Literally become richer with every BrewDog beer you drink

In addition, those investing over £950 will get a free 12 month membership to our Abstrakt Addict Club, which is worth £135. This will entitle you to 3 bottles of the next 4 editions of our acclaimed Abstrakt series (www.abstrakt.com) delivered direct to their door.

If you have any questions, just drop me an email – james@brewdog.com

Invest in BrewDog at www.brewdog.com/equityforpunks

Comments

  • £950 gets you in!

    James, BrewDog30.08.2011
  • I'm also interested in the answer to this question posed by 'Mattjimf'. Anyone know the answer?

    'The free membership to the abstrak addict club, is that for £950 and above or purely for over £950, so you need to invest £1,045.'
    Kiltman30.08.2011
  • Can you advise when the manchester bar will be open?we are all shareholders yorkshire based and its my dads 60th in oct and as a present we have bought him some brewdog shares so he can be part of the group, would be great if we could follow it up in a brewdog bar.
    Dean28.08.2011
  • BrewDog Manchester? That's the first time I've heard of it. Why no announcements? Will it be open by 6th October? :) 'cos I'm down there.....
    stravale27.08.2011
  • It is very cool that by investing we also own part of Anchor!

    Mark27.08.2011
  • Details of the online discount and how it works are here in the FAQ http://www.brewdog.com/equityforpunks/faq
    James, BrewDog27.08.2011
  • Can't wait to start claiming the discount at BrewDog Camden.
    Terry26.08.2011
  • James,

    Thanks for the explanation

    Richard
    richard26.08.2011
  • And let's not forget, it is kinda cool telling people that you are a shareholder in a world famous brewery! I invested first time round and so far this time have managed to get three friends to invest.
    BeerHawk26.08.2011
  • I seemed to have misplaced my password from when I set up my Equity for punks account. How would I go about retrieving it?
    Bogboybrewingco8125.08.2011
  • Great post. I am in!
    Anthony25.08.2011
  • Yes - you will be able to use them at Anchor too. We are also looking to start preparing the membership cards in the next week so all investors can start claiming their bar discounts soon!
    James, BrewDog25.08.2011
  • The Anchor thing is really cool. I heard we could also use our EFP cards to get discounts on their tour?
    Adrian25.08.2011
  • Loving the chalkboards of the team. And the fact a dog is on there too!

    *woof*

    Helen S25.08.2011
  • Great blog post and really interested note on the valuation. Thanks for explaining this.

    Bex25.08.2011
  • I am now totally convinced and have joined both clubs - EFP and AA.

    Can't wait for the AGM and Camden Bar!

    Matt25.08.2011

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