From BrewDog to CAMRA: how to invest in beer
We look at five very different ways to invest in beer.
Wine investment doesn’t have the best reputation, having become sullied by the cold-calling investment scammers, but what about putting your money into beer? There are currently a number of ways to invest your cash, with all sorts of different rewards on offer.
Let’s take a closer look.
BrewDog
BrewDog is a Scottish brewer which is currently looking to raise money from investors via its Equity for Punks IV fundraising. As the name suggests, this is the fourth time it has turned to the public for funding; this time it's looking for £25 million.
The money will go towards a number of different projects, from building a bigger brewery and opening UK bars to establishing an American-based brewing operation and launching a craft beer-focused hotel.
Shares cost £47.50 each, with a minimum investment of £95. It already has 14,500 Equity Punk investors.
In exchange, investors get benefits including:
- a small stake in the company;
- discounts in BrewDog bars of 5-10%;
- discounts in BrewDog’s online store of 10-20%;
- £10 of Beer Bucks, vouchers that you can spend in a BrewDog bar;
- a free beer in a BrewDog bar every year on your birthday;
- an invite to the company’s AGM for you and a friend, which is essentially a beer and music festival.
The fundraising closes on 20th April 2016.
For more, read BrewDog crowdfunding: what do you get for your money?
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Innis & Gunn
Scottish brewer Innis & Gunn is currently offering the BeerBond, a mini-bond which will reward investors with either 7.5% or ‘Beerbucks’ which can be used to buy beer from the firm’s online shop.
All investors benefit from a 12.5% discount in the shop.
You have to invest at least £500 over a four-year initial term, with the cash going towards a new brewery, bottling line and barrel store. Innis & Gunn is looking to raise £3 million, with the bonds closing on 16th June.
Since 2011 Innis & Gunn has increased the number of bottles of its beer sold from 9.9 million to a whopping 20.9 million last year.
Investing in a mini-bond like this is different to the equity offered by BrewDog and others. A mini-bond is essentially an IOU from the firm, so you don't actually get a stake in Innis & Gunn. For more on mini-bonds, read our Beginner's guide to bonds.
Camden Town Brewery
Earlier this year Camden Town Brewery launched a campaign on Crowdcube, looking to raise £1.5 million to go towards a new state-of-the-art brewery.
In exchange you get shares in the company, either A shares, with full voting rights if you invest £25,000 or more, or B shares with no voting rights if you invest less than that. On top of a stake in the company, there are all sorts of rewards based on how much you invest, from a limited edition bottle of beer and 5% off in the store (if you invest £100) all the way up to a case of beer every month, as well as a tank of beer each quarter, delivered by personalised lorry (if you invest £500,000).
The project has proved wildly popular, raising more than £2.8 million. It’s now closed, though you can register your interest in case the firm decides it needs additional investment.
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CAMRA Members Investment Club
The Campaign for Real Ale (CAMRA) group offers an investment club for members. You put in between £5 and £166 per month, which goes into the group’s fund. This is then invested in a range of breweries and pub chains, including Adnams, Fullers, Greene King, JD Wetherspoon, McMullens, Shepherd Neame and Youngs.
There are almost 4,000 members of the investment club, with the fund worth the best part of £20 million.
The club organises visits to various breweries both in the UK and abroad. If you decide to cash out, you can simply sell your stake.
Red Squirrel Brewing
Hertfordshire-based Red Squirrel Brewing Company is looking for investors, though it has not yet published full details on exactly how any investment scheme would work.
The craft beer brewer plans to expand its shop and tasting bar concept across the south east, as well as opening a microbrew bar in Europe. On top of that it wants to launch a number of music festivals, complimented with an on-site craft beer bar.
Investors will get to visit the brewery on a regular basis, as well as enjoy discounts at both the brewery and any music festivals.
The prospectus is “coming soon” but in the meantime you can register your interest on the Red Squirrel website.
Invest in corporate bonds via loveMONEY
More on investing:
BrewDog crowdfunding: what do you get for your money?
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