Here’s all the beer- and pub-related news and reading that’s seized our attention in the last week, from marriage equality in Australia to takeover tremors at BrewDog.
A quick mention, first, for Nathaniel Southwood whose post on why he’s done with beer festivals went mildly viral on Reddit this week, somewhat to his surprise. We’re also festival sceptics and so, it seems, are plenty of other people out there.
For Brewers’ Journal editor Tim Sheahan has profiled Mike Marcus, the outspoken founder of Manchester’s Chorlton Brewing Co. At times aggressively political on social media, and committed to producing challenging beers, his comments come across as refreshingly unvarnished:
Some people can’t understand why we don’t have a business model to sell to a bigger business. Sure you have some exceptions in the UK with the sales of Meantime and Camden Town but with something like 1,700 breweries, how many are going to exit like that. Ten, maybe. Who knows? I want an investor that backs me and works with me. It’s why we’ve never done crowdfunding, everyone is looking for an exit.
With that segue, let’s turn to BrewDog: in the last couple of weeks the Scottish brewery has written to shareholders (PDF) and posted on the forum for ‘Equity Punks’ (crowd-funding backers) with news of changes which pave the way for an outside investor to acquire a 30 per cent share of the company by, in effect, downgrading the value of shares held by smaller investors. There’s a short summary of the main points by Kadhim Shubber at the Financial Times (registration required) and Glynn Davis at Beer Insider provides helpful commentary:
Crowd-funding is being marketed to very small investors who probably do not have much finance experience. They think they are buying ‘shares’ but if their pre-emption rights are being widely removed as an original condition, then they are not getting what any reasonable person would view as equity… I strongly suspect that the FCA (Financial Conduct Authority) will be along shortly to inform BrewDog, CrowdCube et al of this very fact.
Detail aside, this tells us that a move everyone has been waiting for is finally underway. We doubt very much that the particular investor BrewDog is courting is a big multi-national brewery — they’ve just banged on about that so much when they didn’t need to that we can’t see it happening. But who knows.
Continue reading “News, Nuggets & Longreads 18 March 2017: Bibles, BrewDog, Bulldogs”