Scottish craft brewer BrewDog is to launch several new brand extensions including a hotel called The Kennel in the north-east of Scotland, focused on craft beer.
The hotel “would offer our vision of the ideal accommodation for passionate craft beer comrades making the pilgrimage to visit our Ellon brewery”, according to a prospectus for new investors released by BrewDog today (22 April). The venue “may well have Punk IPA on tap in every room”, it adds.
BrewDog will also open a “small brewing operation” based in the US, as well as a UK distillery to produce craft spirits and a distribution arm enabling it to reach more consumers with its own beers and those it imports from craft breweries overseas.
The new developments will be funded by issuing half a million new shares through a fourth round of the Equity for Punks ownership scheme, which allows individual consumers to invest in a minimum of two shares at £47.50 each.
Investors get discounts in BrewDog bars and on online orders, as well as the opportunity to try new beers before they are released to the market, however shares can only be traded once a year via the company’s own trading platform, as it is not listed on a stock exchange.
BrewDog expects to raise £24.8m in total from its latest share issue, with the bulk of the funding – £7m – to be spent on opening more UK bars, with another £2m going towards expanding BrewDog’s international bar division. Meanwhile, £3m will be invested in expanding its existing brewery and another £3m in the US brewery launch.
The brand has gained a cult following in the American market through the Brew Dogs TV show, hosted by founders James Watt and Martin Dickie, broadcast on NBCUniversal’s Esquire network.
“This launch in the States would enable us to continue to grow our business in the world’s biggest craft beer market. We believe there is a huge thirst for BrewDog beer in America, and this move would be the perfect way to help quench it,” the company states.
BrewDog’s sales have grown exponentially since it first launched Equity for Punks in 2009. It was named the UK’s fastest-growing food and drink brand by The Sunday Times in 2012 and 2013.
Revenues were £29.4m in the 2014 calendar year, up by 64% from 2013, while profits after tax were £2.7m, up by 19%.