Big Drop Brewing Co. has launched a crowdfunding campaign on the Seedrs platform, targeting £450,000 to support its global expansion efforts. This initiative values the business at £11.3 million pre-money.
Strategic Shift to Brewing-Under-Licence
Last year, Big Drop transitioned from contract brewing in the UK to a brewing-under-licence model by partnering with In Good Company (IGC). IGC, which owns the Fourpure and Magic Rock beer brands, re-established its craft roots after being sold to Australian beer giant Lion. This partnership has enabled Big Drop to expand its range of alcohol-free beers on draught, with a focus on pubs and bars in London, Manchester, and Liverpool.
According to a statement from Big Drop, “The model means that both parties benefit: IGC brews and sells the beer; Big Drop utilises the brewery’s sales team and, with minimal expenses, can invest heavily in growth capital.”
Global Expansion Plans
The funds raised will support the replication of this licence model in other regions. Since 2021, Big Drop has been contract brewing in the US, where several breweries are now interested in taking a licence. Additionally, a new brewing partner in Singapore has been awarded a licence to serve as an export hub for Southeast Asia, and a licence has also been granted in Australia.
Co-Founder’s Vision
Rob Fink, Big Drop’s co-founder, emphasized the benefits of the licence model: “Contract brewing, or running a brewery, whilst also trying to invest significant marketing dollars on growth is no longer a viable business model, as it was pre-2022. By leveraging a brewing partner’s production and sales capacity, we don’t need to spend cash on working capital but instead can concentrate our investment on growing the brand, just as we have done in the UK.”
Focus on UK Growth
In the UK, Big Drop is focusing on supporting draught listings by signing up more pub groups, such as Mitchells & Butlers and Hall & Woodhouse. Fink noted, “Pouring a pint of alcohol-free beer from a bar-top font helps destigmatise any remaining notions that it is somehow an inferior option to an alcoholic beer. We have a plan to encourage trial in pubs through merchandise, competitions, and that old favourite: free beer. And from a purely financial point of view, having Big Drop on draught will mean more sales – a whopping 95% of beer sales in pubs are on draught.”
Long-Term Strategy
Fink previously highlighted how contract brewing had initially worked well for establishing Big Drop but admitted that partnering with IGC made more sense for long-term growth and brand building.
With its innovative approach and strategic partnerships, Big Drop Brewing Co. aims to solidify its position in the alcohol-free beer market and expand its global footprint.
