Big Drop Brewing Co., renowned for its alcohol-free beers, is launching a crowdfunding campaign on the Seedrs platform, targeting £450,000. This initiative aims to support its global expansion efforts, offering a ‘pre-money valuation’ of £11.3 million.
Transition to Licensing Model
Last year, Big Drop transitioned from contract brewing in the UK to a licensing model, partnering with In Good Company (IGC). IGC, which owns the Fourpure and Magic Rock beer brands, was reacquired from Australian beer giant Lion and reinstated as a member of the Society of Independent Brewers (SIBA). This strategic shift allows Big Drop to leverage IGC’s brewing and sales capabilities while minimizing expenses and focusing on growth capital.
Expansion Plans
The new funds will enable Big Drop to replicate this successful license model in other regions. In the US, where Big Drop has been contract brewing since 2021, various breweries have shown interest in acquiring licenses. Additionally, a new brewing partner in Singapore has been awarded a license to act as an export hub for Southeast Asia, and a similar arrangement has been made in Australia.
Advantages of the Licensing Model
Rob Fink, co-founder of Big Drop, emphasized the benefits of the licensing model, stating: “The license model works. Contract brewing or running a brewery while also investing significant marketing dollars in growth is no longer viable as it was pre-2022. By leveraging a brewing partner’s production and sales capacity, we can concentrate our investment on growing the brand.”
In the UK, Big Drop’s focus includes expanding draught listings in pubs, partnering with groups like Mitchells & Butlers and Hall & Woodhouse. Fink noted, “Pouring a pint of alcohol-free beer from a bar-top font helps destigmatize any remaining notions that it is somehow an inferior option to an alcoholic beer. We plan to encourage trials in pubs through merchandise, competitions, and free beer offers. Financially, having Big Drop on draught will mean more sales – a whopping 95% of beer sales in pubs are on draught.”
Strategic Growth
Fink previously highlighted the effectiveness of contract brewing for establishing Big Drop. However, he acknowledged that partnering with IGC for the long term made sense for growing and building the brand. This new crowdfunding effort aims to extend that growth globally, ensuring Big Drop continues to thrive in the alcohol-free beer market.
Conclusion
Big Drop’s innovative licensing model and strategic partnerships are set to drive its global expansion, supported by the upcoming crowdfunding campaign. By focusing on growth capital and leveraging existing brewing and sales networks, Big Drop aims to cement its position as a leader in the alcohol-free beer industry.
