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Parrotdog Brewing Limited
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Minimum target: NZ $700,000
Days left: Closed
Funded: NZ $1,000,777
NZ $1,000,777 pledged
499 people pledged
NZ $700,000 minimum target
Pledges will only be confirmed if the target is reached by: 22/12/2017 at 4:00 AM (NZDT)Make a Pledge
Parrotdog Brewing Limited
It’s been just over fifteen months since our successful equity raise in August 2016, and we are very pleased to have executed the completion of Parrotdog’s new brewing facility in Lyall Bay, Wellington. This key milestone would not have been achieved without the support of our shareholders, whom we are extremely grateful to for their belief in the company’s direction.
As we outlined in our prospectus for the equity raise in August 2016, physical assets made up the majority of what the new capital would be allocated towards, in an attempt to meet the demand for our product and create capacity we can grow into. The result of implementing this could not have exceeded our expectations any further; the new brewery’s output quality and production efficiency means Parrotdog has, in our opinion, never been more enjoyable.
Executing our overall project in Lyall Bay has continued to be our priority; a new base from which anyone is welcome to experience the product and brand firsthand. We originally chose to outsource the sales and distribution function of the business to a third party in October 2016, to allow us to focus completely on this objective – this decision played a crucial role in providing us with the human resource needed to complete our new production facility and our cellar door, Nice. Takeaway.
The recent decision to discontinue using this third party for sales and distribution means we’re presented with a new opportunity: to develop our own sales network and to expand on what has already been carved out in front of us – ensuring an even stronger presence within the New Zealand market. This, coupled with the ability to now implement what were originally considered to be longer-term growth aspirations, means we’re in a position to expand Parrotdog at an even faster rate.
To achieve this though, we will require your support, as we need to invest in our sales growth strategy to ensure the market is sufficiently covered from the outset – both in New Zealand and beyond.
This is your invitation to join us (again), as we position Parrotdog for its next growth phase by taking advantage of the new opportunities we now have.
It’s time to expand the family – get the next round.
The Plan - Sales & Distribution
Bringing sales and distribution back in-house and establishing our own direct sales network presents us with the opportunity to regain control of the way our product and brand are represented in the marketplace going forward.
The immediate opportunity we face is a direct result of having discontinued our sales and distribution partnership. Our initial motivation to outsource the sales and distribution function of the business to a third party was to provide us with the ability to focus on building the business, without the concern of managing the logistical aspects of a national sales network. The timing of this was particularly motivating as it also gave us the opportunity to have all hands-on-deck, and to invest fully, in the construction of the new brewery. The decision to leave our sales and distribution partner, however, is the result of seeing some growth, but not as much as we believe is possible with the newly established production capacity. Gaining significant brewing efficiencies and capacity has also resulted in us now being in a position to invest time back into growing other parts of the business.
Read more about our sales and distribution plans here.
The Plan - The Bar
Inspired by the old hotels and pubs of yesteryear, we aim to create a bar that’s not only community oriented, but a destination that anyone and everyone would feel welcome in.
We envision a space that complements the neighbouring brewery but is also a draw card in its own right - a bar that caters for all, without being limited in its offering due to its proximity to the production brewery.
The ability to fully cater in-house will form the initial basis for how we plan to expand on the original scope of the bar offering. Keeping in line with how we like to present our own product, a full kitchen will be modelled on a simple but quality product - a New York style deli / sandwich bar focussing on high quality meats, cheeses, breads, pickles and seasonal produce. The New York inspired deli will act as an additional draw card to the Lyall Bay area, providing a food offering that we’ve already seen great success from in American brewery bars.
Read more about our bar plans here.
The Plan - The Cans
We intend to purchase a semi-auto in-line can filling system for the purpose of servicing our export markets and supplying special release cans to the New Zealand market.
The production of cans at Parrotdog will form the basis for an overarching export strategy. Not only do cans present the ability to gain considerable freight efficiencies due to the increased beer-to-weight ratio, but a number of export markets are now requesting them over bottles. We are yet to re-enter the Australian independent market, with Coles liquor chains continuing to be the only Australian customer we service with bottle product. This is largely a result of being in advanced discussions with a number of distributors that have continued to push for reentering the market in cans only. For this reason, the Board has continued to halt any action in engaging new export partnerships, including those beyond Australia, as it is evident that cans are a crucial part of forming a desirable proposition.
Read more about our can plans here.
The Share Offer
We are issuing up to 1,000,000 shares at $1.40 per share. This will represent 7.75% of the company.
We are offering a minimum of 500,000 shares (for the o er to go live) and up to a maximum of 1,000,000 shares.
Following our successful crowdfund in August 2016, where we received overwhelming support from the public and added almost 800 shareholders to the Parrotdog family, we have decided to go back to our crowd for a second round of funding. This is an opportunity to invest in this vibrant and growing industry.
The packages we will be offering on PledgeMe’s crowdfunding platform represent parcels of Parrotdog shares. Each share will be issued at a price of $1.40 and will have an equal entitlement to dividends and other distributions by the company – meaning as we grow Parrotdog the value of your shares will grow too.
In addition to part ownership in Parrotdog, we have included further rewards for each share package sold, which correspond to the rewards offered in our first equity raise. This is to ensure that both our current shareholders and our new shareholders getting the next round, will benefit equally from their investment in Parrotdog.
Read the commentary on our financials here.
Our Management Team
Director / Marketing
Kristofski is the Head of Marketing, he leads all brand direction and development, as well as managing all customer engagement. He also leads all export partnerships.
Wattie is the Head of Sales and leads all strategic direction associated with product flow to market. He will take charge in managing the development of Parrotdog's newly formed national sales and distributon network, including all sales staff.
Director / Brewing / Production
Warner is the Head Brewer and is in charge of all beer production and quality control. He oversees all raw material supplier relationships and the inbound flow of ingredients. Warner is also the lead on all recipe development and refinement.
Packaging / Production
Dan is the Operations Manager, which encompasses both Packaging and Logistics. Dan leads bottling, kegging and outbound beer logistics, as well as overseeing the inbound flow of raw packaging materials.
Director / Finance / Administration
Stevens, a Chartered Accountant, is the Head of Finance and Administration. He oversees the back-end of the business processes including cash flow, HR, inventory, CAPEX and all internal systems.
Use of Capital
Sales Team Roll Out $395,000
Fully funded first 12 months of rolling out our own sales team. All costs incurred for a staggered hire of four sales representatives based throughout the country and a sales support role based at the brewery. Costs include the lease of a fleet of vehicles, devices and all other equipment required.
Brewery Bar – Extended Scope $385,000
Full commercial kitchen, acoustic treatment, extensive ventilation including extraction and fresh air circulation, high-end sound and lighting equipment and all other costs incurred in delivering an extended scope on the bar design and build.
Canning Operation $330,000
Semi-auto in-line can filler, depalletiser and pre-fill rinse cage, engineering and fabrication costs, conveyor systems, plates, set up and origination cost for new cans and outer packaging.
Working Capital $200,000
Increase in raw materials, extended payment terms for large accounts, initial inventories for bar opening, initial inventories for canning product roll out, marketing budget for bar opening and canning product roll out.
Capital Raise Costs $90,000
PledgeMe fees, legal fees, photography and design costs.
INCREASED COMPETITION: The risk of the market significantly heating up with increased competition
We believe that with a combination of our beer quality, our already established brand in the mar- ket-place and our new volume capacities coming online, we will be able to remain relevant and continue to compete. Continued product diversification will also aid in maintaining a competitive advantage.
CASHFLOW: The risk of not having enough cashflow or working capital to meet obligations, due to either poor sales or late paying customers
We will endeavour to execute our sales strategies in-house, both domestically and internationally, to the best of our ability. We will chase up late payments, either in-house or with our distribution partners and we will continue to work closely with our bank for any working capital assistance.
PROFITABILITY: The risk of not operating profitably
Brewing larger volumes now allows us to spread our overheads further and increase profit margins. Diversifying our income streams allows us to operate at retail margins through Nice. Takeaway and the Bar. We also strive to continue to keep a tight control on all our costs.
PROJECT DELAYS: The risk of the new Bar or canning project being delayed by unforeseen circumstances
We have already engaged contractors to carry out the Bar fit-out works, which will begin as soon as the landlord’s Earthquake Strengthening works are completed. We endeavour to quickly find solu- tions to any problems in this process, as and when they occur.
We already have multiple quotes for various can filler options and we are ready to order the one which we consider to be the best value. Should any delays occur here, we have the option of using a contract mobile canning company in the interim.
REGULATORY: The risk of local council regulations halting the new brewery bar progress
We are working closely with engineers, architects, the Wellington City Council, and other consultants to navigate our way through the consent process.
KEY PERSONNEL: The risk of losing key personnel
We will maintain comprehensive documentation of all operating procedures and continue to train our staff in multiple areas to diversify their skill bases, which allows for cover in all areas of the business should we lose any key personnel for a period of time.
Read the full Parrotdog IM here.
Note from PledgeMe
We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.
The Last Week
18/12/2017 at 6:33 PM
A reminder that this is your last week to get a piece of the pie - our latest equity crowdfunding campaign closes at 5pm this Friday.
Week One is Done
30/11/2017 at 2:00 PM
It’s been one week since making our latest equity crowdfunding campaign live to the public. We’ve been overwhelmed with the support that we’ve had for Parrotdog already – reaching the minimum target of $700k within the first two days far exceeded our expectations and we’re incrediably thankful to those who made it happen.
For those of you stilll pondering the decision to ‘get the next round’, we’d like to welcome you to visit us at the brewery, where one of the Matts will happily talk you through any questions you have relating to the raise. Out-of-towners are also welcome to make direct contact with us via [email protected]
For the brewery visiters, please note that December is the busiest time of year for us and the Matts are often away from the office as a result. Please make contact with us to schedule a time prior to arriving at the brewery, so we can ensure someone will be here to meet with you.
Thank you again and we’ll look forward to seeing some of you soon.
Matt, Matt, Matt and the Parrotdog Team
Public Equity Crowdfunding Campaign Now Live
23/11/2017 at 3:00 PM
Our latest equity crowdfunding campign is now live.
Get your piece of Parrotdog now.
Matt, Matt, Matt and the Parrotdog Team
|Maximum Shares Offered||1,000,000|
Explanation of valuation:
The valuation of Parrotdog Brewing Limited was undertaken by the Board of Directors.
The valuation has been calculated using a ‘multiple of revenue’ method. The Directors are comfortable that a multiple of 4.15 times the current financial year’s estimated revenue is a fair market value, based on the growth potential of the business in today’s growing market.
This is an increase from the August 2016 raise, for which a multiple of 3.6 times revenue was used, as it is deemed that with the construction and commissioning of the Lyall Bay brewery the company has now been de-risked from a production perspective and has significantly higher upside potential given its proven ability to produce much larger volumes.
The valuation multiple is consistent with the multiples set out in the Comparative Analysis of recent market transactions in the same or similar industries in our IM.
|Prev Year||Current Year||Est. FY 2021||Est. FY 2022|
|Revenue||NZ $2,788,000||NZ $4,010,000||NZ $6,795,000||NZ $10,345,000|
|Operating Expenses||NZ $1,258,000||NZ $1,811,000||NZ $2,875,000||NZ $4,377,000|
|EBITDA||-NZ $51,000||NZ $116,000||NZ $605,000||NZ $928,000|
|Net Profit||-NZ $306,000||-NZ $238,000||NZ $285,000||NZ $511,000|
Company Name: ParrotDog Brewing Ltd
Company Number: 3391494
Ask a Question (You must login to ask a question)
Is the offer open to Australian citizens/residents again?Posted on 22-11-2017 by Shane Jasprizza
International Investors are allowed to invest if they can confirm that they are legally allowed to in their home country and can confirm they are wholesale investors.
Answered on 22-11-2017 by Parrotdog
Will shares from this new offer be combined with existing shares held to reach the 2000 threshold? (I already own 500)Posted on 23-11-2017 by Craig Farrand
What are the VIP card Ts&C's? (Minimum use requirements etc?) Can't find the document in details page.Posted on 23-11-2017 by Joanna
Currently there are no published T&Cs and currently the key terms are:
- the card is personal and not transferable;
- it is subject to a ‘fair use’ requirement;
- there are no minimum use requirements currently, but the company can add to or amend the terms and conditions in its discretion.
Answered on 23-11-2017 by Parrotdog
-There is no marketing allocation in the $1.4M capital raise. How do you intend on funding this?
-How will you fund the sales team beyond year 1 if you've only allocated $395K all earmarked for the first year?
We do not have a marketing budget for the capital raise. We did not require this for our first equity raise and do not anticipate we will this round. The rise in sales volume we anticipate from our sales team will lead to a higher gross margin which will enable the sales team to be funded out of the company's profitability after the first year.
Answered on 24-11-2017 by Parrotdog
So is Parrotdog listed and can these shares be sold at a later date?Posted on 23-11-2017 by Chris Bramwell
With regards to the Balance Sheet. What has caused the Current Liabilities to spike and the Non Current Liabilities to decrease in the FY17 accounts? How does the FY18 year manage to rebalance these liabilities? Cheers!Posted on 24-11-2017 by Shayna
The spike in the 2017 Current Liabilities was due to two reasons. Firstly, there was a significant increase in one-off capital items being in Accounts Payable as at March 2017, as this was when a lot of new equipment arrived. Secondly, there was the addition of a temporary financing facility we utilised for flexibility as we worked through the construction of the brewery. Once construction was completed and the brewery operational, these funds moved to Non-Current term debt, hence the rebalance in 2018.
Answered on 24-11-2017 by Parrotdog
Will you allow pledges of less than $700?Posted on 30-11-2017 by Andre Koekemoer
Unfortunately not sorry, as we are keeping the minimum investment in line with the minimum amount of shares (500) that were able to be purchased in the 2016 equity raise.
Answered on 01-12-2017 by Parrotdog
Can a current shareholder (2000 from initial funding) top up their investment less than 500 shares?Posted on 05-12-2017 by Bruce Milne
What will your total export sales by market be this year? Are you looking to greatly expand export markets?Posted on 05-12-2017 by Brian Green
As noted in the prospectus (see page 19), Coles remains our largest export partner with a small volume being exported to Japan as well. We have chosen to delay further export development due to the cans making for a more appealing preposition. Our aim is to expand exports significantly in the new year, once the new canning facility has been commissioned.
Answered on 08-12-2017 by Parrotdog
Can I pay my $700 early please
Followers of Parrotdog Brewing Limited
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"donating these shares to a family member"
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"Donating these shares to a family member "
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"Good luck from George Stewart Matthew Coles"
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"Good luck from William Coles"
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"Love your work guys and girls. Can't wait for the bar to open!"
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"Looking forward to becoming part of a great company with a vision to the future. And a future iconic brand."
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"Keeping the hubby happy..."
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This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in Parrotdog Brewing Limited, you can sign up to be notified when a new equity campaign from this company is published.
• Part ownership in Parrotdog • VIP discount card* • 10% discount on all beer and merchandise through our Online store & Nice. Takeaway cellar door • Complimentary birthday pint at the new Lyall Bay brewery bar – opening Summer 2018 • Invitation to the Annual General Meeting (AGM)
• Part ownership in Parrotdog • All rewards gathered from Package A, plus • VIP discount card* • 10% discount on beer & food at new Lyall Bay brewery bar – opening Summer 2018 • Use of personalised shareholder’s handle with your name on it, when drinking at the brewery bar • Special shareholder tour
Shareholding of 35,000+ Ordinary Shares • Part ownership in Parrotdog • All rewards gathered from Package A and Package B, plus • Your own event at the bar – an exclusive area reserved in the bar for a one-off event, including additional discounts on beer and food at the event
I want to embed this investment somewhere
Minimum target: NZ $700,000
Days left: Closed
Funded: NZ $1,000,777