Brewdog defies pandemic to lift revenue as drinkers buy online
BREWDOG has revealed that its revenue leapt to nearly £240 million last year as e-commerce orders to its online shop soared during the pandemic.
The Aberdeenshire-based craft brewer and bar operator reported that revenue had grown by 10 per cent to £238m in 2020 despite the protracted closure of the on-trade at its virtual annual general meeting. Details of its plans to expand in the hospitality industry and to become more environmentally sustainable were also unveiled.
The AGM, which was hosted by co-founders James Watt and Martin Dickie, heard that Brewdog’s e-commerce sales had increased 13-fold as beer lovers shopped increasingly online last year in response to coronavirus restrictions.
A record 242 million cans were shipped, Brewdog said, noting that a further 30,000 distribution points in the off-trade were opened up.
The previous accounts for Brewdog show that the company made a pre-tax profit of £1.1m on revenue of £214.9m for year ended December 31, 2019.
With the hospitality industry set to reopen in Scotland on April 26, the company said it will launch its first hotel in Edinburgh in a former school opposite the city council headquarters on Market Street.
The Doghouse branded venue will be the company’s third hotel. Its first hotel was opened at the company’s brewery in Columbus, Ohio, in 2017, which was followed by the launch of a Doghouse in Manchester last April.
Brewdog also outlined plans to open several more bars south of the Border. Ealing, Plymouth and Exeter are in its sights, as are openings in Las Vegas, Milan and South Africa.
A search is also under way in France for a brewery to support its European distribution efforts.
Meanwhile, Brewdog declared that it is ramping up efforts to further reduce emissions, revealing its intention to plant millions of native trees at a site located to the west of Aviemore, where it hopes to create a bio-diverse broadleaf woodland and ecosystem. It stated the Lost Forest would be the biggest reforestation project the UK has ever seen, with plans to develop a hotel with sustainable cabins and a brand new distillery at the site.
Mr Watt said: “Brewdog was founded to change the world of beer, putting purpose and the planet before profit. This year has been one like no other, but that’s not stopped us pushing forward with our commitment to doing business for good, and continuing our fight against climate change.
“The support for our initiatives across the business is a sign that our customers want to be part of something better, and to be part of the change the world so badly needs. There are no radical solutions left.”
Brewdog continues to raise cash via crowdfunding to finance its expansion activities. Its latest campaign, Equity for Punks Tomorrow, has raised nearly £23m, more than 90 per cent of its £25m target. Nearly 55,000 new investors have been brought on board.
The company intends to invest the monies raised to overhaul its brewing business, and signalled plans to use wind to power its brewery, install an anaerobic
digester to turn wastewater into green gas, and recover carbon dioxide from the fermentation process to carbonate its beers. Turning spent grain into green gas and electrifying its vehicle fleet are also on the agenda for the company, which announced last year that its operation was carbon negative.
Brewdog is widely credited with sparking the explosion of consumer interest in craft beer in the UK since its formation in 2007. The company has now raised more than £96m through crowdfunding throughout its history, with the sale of shares to loyal fans being used to fund its expansion. In 2017 it sold a 22.3 per cent stake in the company to US private equity house TSG Consumer Partners for £213m.
The company now has more than 1,000 staff globally, and 102 bars.
This year has been one like no other, but that’s not stopped us pushing forward