Scottish independent craft brewer, BrewDog, has released a new bond offer with a unique method for compensating investors.
Yahoo Finance UK first reported on BrewDog founder James Watt floating the idea of an unusual debt instrument that would feature both financial returns and free beer in August.
“We are considering another £10m bond offering and this time we would pay the coupon 50% in beer and 50% in cash. Meaning investors get an annual financial return and also an annual payment in beer!,” Watt wrote on the brewery’s investor forum.
The company formally announced on Tuesday beer lovers who purchase a bond will receive interest payments twice a year and can spend their “BrewBucks” via BrewDog’s online shop at Brewdog.com, in one of its UK bars or both.
The bond, launched on Crowdcube.com, is offering a fixed yearly interest rate of 6% gross, across four years, paid out 3% in cash and 3% in craft beer.
Each BrewDog Bond will cost £500 and the brewery promises “each BrewDog bondholder will receive £20 BrewBucks to spend in the company’s 90+ bars and venues worldwide, a free copy of BrewDog’s book ”Craft Beer for the People”, as well as a free beer on their birthday for every year they are a bondholder”, on top of the interest rate.
BrewDog is currently the top craft brewery in Europe. It was named as the UK’s most valuable beer brand by BrandZ* in 2018, with over 90 locations worldwide and breweries in Scotland, Germany and the US which together export to over 60 markets globally.
The new bond is the brewery’s latest move in its efforts to become the biggest craft brewery in the world. The cash influx will support projects including expansion into India, hitting the 100-venue mark, and putting the finishing touches on a new brewery in Australia.
James Watt, Captain of BrewDog, said: “The growth BrewDog has shown over the last 12 years could not have been achieved without the support of our amazing community and our friends, and we love the fact that Crowdcube understands and shares the same philosophy.
“The BrewDog Bond is another way for people to get involved in our future as one of the UK’s leading brands, and we won’t stop until we become the number 1 craft brewery. Globally. And in terms of that goal – we’re just getting started.”