BrewDog to open a brewery

Think of all the wonderful things you can do with a shot of private equity money in the arm, like building a brewery. In a July entry to their blog, Scottish brewer BrewDog made the promise to their Australian fans: “We are heading down under to build a brewery for you.” Although they do not have a location yet, or a city, for that matter, they are considering options.

“We’re after a kick-ass location for our brewhouse, and are narrowing our eyes on two areas on the east coast growing at lightning speed – Newcastle and Brisbane.”

Why they don’t go to Sydney or Melbourne, we don’t know. Maybe it’s to do with real estate prices and red tape? Or, more likely, they are looking for an amenable local council that will help them along.

What we know so far is that BrewDog are looking for a site between 2,000 and 4,000 sqm which should be enough for a large taproom and a brewery doing 50,000 hl beer or more.

Earlier this year, BrewDog opened their first brewery outside Britain in Columbus, Ohio, and announced they would open a sour brewery and destination beer hotel nearby.

Thanks to a GBP 100 million (USD 130 million) private equity infusion, things down-under could be moving very fast.

The reason – allegedly – for opening a brewery in Australia is fresh product. US craft brewers like Goose Island and Brooklyn are already brewing in the country at CUB and Coopers respectively, and there is growing speculation that the Australian craft beer market is reaching saturation.

Announcing their intent is definitely meant to get people talking. This did not work for BrewDog in Columbus, though. The US fundraiser did not flush in enough money to build the brewery, which ultimately required BrewDog to sell a substantial portion of the company to private equity to complete the project and keep going.

Insiders say, Australia isn’t likely to be much different from Ohio in that regard, but private equity money could go a long way.