BrewDog

BrewDog burst into the crowded traditional UK beer market in 2007, capturing the interest of major and niche retailers alike.

With Scottish Enterprise (SE) and Scottish Development (SDI) support, it has also taken the world by storm with a massive export business operating in five continents and phenomenal 200 percent growth year on year.

“We have only been able to grow this rapidly as a direct consequence of the help, support and influence of SE and SDI” – James Watt, Head of Stuff, BrewDog

The company

BrewDog, based in Fraserburgh, brews an innovative range of craft beers in draught, bottled and canned formats. Founded in 2007 by two 24-year-olds, the company has created a niche in the market for distinctive beers, exploited the brand through clever social media marketing, and created a dedicated following.

BrewDog beers are now stocked by major and niche retailers the world over, and the company has opened five distinctive bars in the UK.

The challenge

BrewDog, founded in 2007, was the brainchild of 24-year-olds James Watt, a law degree student, and Martin Dickie, a first class honours student in brewing and distilling. Both with a passion for craft beers and disenchanted with the UK’s traditional offering they decided they wanted to brew their own.

“We knew exactly what we wanted to do and where we wanted to go. We wanted people to feel as passionately as we do about beer. Scotland is firmly on the map for whisky and we wanted to put it firmly on the map for beer.”

How SDI helped 

Cracking the export market played a significant part in the company’s growth and now accounts for 60 percent of turnover.

SDI’s Dawn Lamarra explains: “We supported overseas forays into new markets, through our overseas market support, analysing the area, finding new routes to market in different countries, introducing leads, presence at trade shows, financing travel to follow up. BrewDog is now operating in five continents, dealing with major retailers and niche sellers alike.”

Says James: “We focused on international growth, as the market for the types of beers we sell is much more developed overseas. This will change as we push it in the UK, but that takes time and, while we do that, we need to get the volumes moving through the business.”

With SDI funding for an export manager, James and Martin were able to focus on growing the business further by raising capital.

Equity for Punks

“Perhaps one of the most significant projects we have undertaken with SE is the launch of Equity for Punks, an alternative business model launched as a way of raising funds.” says James.

The second share issue is currently underway. SE made a contribution to the £75,000 cost of launching this second round, covering set up costs, the prospectus, and audits, all legally verified and FSA compliant.

“The money SE paid was the difference between us doing it or not. We have already managed to use the SE contribution to lever over £1.2 million cash investment – we are so excited at the potential now for the company.”

Much of the new capital will go towards construction of a flagship eco-brewery in Aberdeenshire's Energetica Corridor, to support the company’s growth.

Ian Findlay, Account Manager, SE says: “BrewDog is solidly building its distribution and customer base and is already dealing with a fantastic portfolio of clients both domestically and internationally. They have significant, long-term growth potential with major customers. With the new eco-brewery under construction they will be set to soar.”

The impact

Four years on, and the company has experienced phenomenal growth of 200 percent year on year:

• BrewDog currently has 70 employees
• You can buy its beer in 27 different countries
• It's now the largest independent brewery in Scotland
• The company’s turnover was £3.4 million in 2010
• Its on target for £6.5 million turnover in 2011
• It plans to have 10 BrewDog bars open by end of 2012

When asked how the company has benefited from SE and SDI support, James says:

“SE Account Managers have been brilliant since the beginning. We were obviously quite young and quite inexperienced and these guys have really helped.

"It is great to have people there who care passionately about what we do who we can bounce ideas off."

Help to export

Export guide

More about BrewDog on their website