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London Brewery Seeks Money And Profile In Crowdfunding Craze

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http://www.bloomberg.com/news/articles/2015-03-26/london-brewery-seeks-money-and-profile-in-crowdfunding-craze

(Bloomberg) -- Camden Town Brewery could seek the finance it wants to expand from a bank at historically low interest rates. Instead, its turning to crowdfunding to raise money and its profile at the same time.

The five-year-old company is seeking as much as 3.5 million pounds ($5.2 million) by inviting its customers and other investors to subscribe as little as 10 pounds -- the price of two pints of Hells lager in its own north London pub -- in return for equity. It plans to build a second brewery and triple its staff to 200, with a target to sell five times as much beer in 2020 as it did last year.

Little more than a buzzword a decade ago, crowdfunding has emerged as a challenger to traditional financing models by using Internet platforms to match those wanting money with the tens of thousands of individuals willing to stump up contributions of varying amounts. For young companies such as Camden Town Brewery, an online campaign not only brings in investment without the need for banks, it increases awareness of their products and services.

I'm in two minds about investing in this:

For:

Real ale seems to have enjoyed something of a renaissance in recent years.

Camden Town Brewery clearly knows its target market and knows that they have money for this sort of thing.

Against:

I've tried the beer, it's strong but I don't think it's particularly good.

Camden Town Brewery isn't the first to market and won't be the last. Fashions change and I can't see what would make them endure.

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Brewdog have done a few equity raising rounds this way.

http://www.equitypunks.com

To be honest, I much prefer the Camden beer. I quite like the gentleman's wit and the black ink stout.

Brewdog seems a hipster favourite. Theres a newish place in cambridge called the pint shop I get dragged into every so often...silly prices, but full of hipster types paying £6 a beer.

Check out their stupid prices here...£3.70 for a scotch egg.

https://twitter.com/pintshop

I still feel violated paying £6 a pint.

The local wetherspoons is half the price or less, and the human traffic far more interesting to watch, and yet never see anyone buy the brewdog in there for £2.50.

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My local pub has Camden Brewery on draft for a fiver a pint.

The beer is fine, but I do wonder if the craft brewing scene is getting a little crowded now!

That said, potentially they are raising money in order to make a strategic move and set themselves apart.

I'd be tempted to take a look at their accounts - if they are in the black and can service their debt, then it might not be a bad bet.

People are drinking the stuff in my local, after all, so it's not like it's a pipe-dream!

Wouldn't be surprised if there was a huge round of consolidation in this sector at some point.

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Brewdog seems a hipster favourite. Theres a newish place in cambridge called the pint shop I get dragged into every so often...silly prices, but full of hipster types paying £6 a beer.

Check out their stupid prices here...£3.70 for a scotch egg.

https://twitter.com/pintshop

I still feel violated paying £6 a pint.

The local wetherspoons is half the price or less, and the human traffic far more interesting to watch, and yet never see anyone buy the brewdog in there for £2.50.

That's because the only one they sell in spoons comes in a 330ml bottle, costs about £2.50 a bottle so a pint costs ~£3.80 and it's obviously not draft.

I wouldn't pay £6 a pint either but you have to take into account the amount of hops that goes into these beers given dry hopping, which pushes the prices up.

Also the fact this trendy bar isn't just selling punk IPA but a range of brewdog ales will push up the price more I imagine.

It's possible to get a brewdog beer on draught at some Greene King pubs for about a fiver a pint but to be honest, I think it's better to support smaller businesses and let's not forget, you are buying in London after all. :)

Edited by moedo12

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