Behemoth Brewing

By Behemoth Brewing

PledgeMe.Investment

Food,



NZ $1,833,901 pledged


627 people pledged


Closed


NZ $1,500,000 minimum target


Min

NZ$1,500,000

Max

NZ$2,000,000

100 100% Complete

Pledges will only be confirmed if the target is reached by: 15/07/2019 at 9:00 PM (NZST)

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About

Behemoth Brewing

We are sorry you missed the current round of crowdfunding, which closed with 635 new shareholders in Behemoth Brewing and $2.06m of capital raised. Please feel free to register your interest in investing in future Behemoth crowdfunding campaigns, or the possibility of purchasing shares off existing shareholders.  

Behemoth combined raise

The investment offer will only be accepted if a total of $1.5m NZD, or over, has been pledged from the crowdfunding offer and/or wholesale offer by 15 July 2019.

Behemoth Brewing Company (Behemoth) was created in 2013, the dream of Andrew Childs; a beer nerd, beer drinker and home brewer (and sometimes referred to as the Beer Giraffe, due to being really bloody tall).

In the last six years Behemoth has come a long way. It has gone from doing a 1,200 litre brew once every few months to brewing more than 530,000 litres of beer in the last year.  This means someone drinks a pint of Behemoth every 30 seconds, somewhere in the world. Now, that is a little crazy.

We are currently the 4th biggest independent craft brewery in grocery sales in New Zealand and we are now ready to put the foot on the gas by establishing our own brewery and restaurant in Auckland.  

We haven chosen to equity crowdfunding because we wanted to provide our supporters with the opportunity to Be Part of Behemoth’s Home; part of our story. A story of big beers and cheeky antidotes, a brewery, a new food and beer experience hub, and a thriving and exciting industry. 

The benefit in using a crowdfunding platform like PledgeMe also means that we can include additional rewards with each share package or parcel sold, adding additional benefits to those whom purchase shares in Behemoth.

We have come up with some great benefits that Behemoth shareholders (Chur-holders) will enjoy, in addition to the share in the company they gain through their investment. The investment level chosen will determine the contents of the package and membership level.

P.S. We think they are pretty freaking sweet!

 

 

What we've done so far

Behemoth achievements

 Annoyed the leader of the free world?  TICK

 And the leader of the non free world?  TICK

Given it to the Aussies?  TICK 

Learnt some sweet brewery yoga moves?  TICK

Behemoth has grown rapidly since it was started in 2013 when we brewed our first beer "Celia Wade Brown Ale". The beers and puns have come thick and fast since and we have brewed over 125 unique beers in 6 years. We are now one of the largest independent craft brewers in New Zealand.

 

In the previous financial year our revenues grew by 136% as we focused on strengthening our domestic and export sales. For the first time we put our beers into 6 packs, we really ramped up the brewing of our 440ml limited release beers and shipped our beers to 11 export markets. This delivered a net profit for the first time as the business starts to mature. We look forward to doing more of the same in 2020 and onwards.

 

What's next?

Our strategy over the next three years is to continue to grow Behemoth domestically and overseas. We have some exciting things in the works to ensure this growth!

Churly's Bar and Restaurant - Dominion Road, Auckland

Attached to the new production facility at the top of Dominion Road in Auckland (see below) Churly's will be a brewpub with a difference. It will offer all the usual things you would expect from Behemoth and a tap room; a welcoming local place for a casual Behemoth beer, a place to bring out of towners to do tastings and tours and a place to buy beers for takeaway to drink at home (or even better someone elses home). But.....it will be something different from your usual craft beer tap room with the addition of a food and beer matching restaurant. The restaurant will focus on a nose to tail menu that will be supplied by our onsite butchery. We feel that this sustainable and low waste dining experience with a true focus on food and beer matching will be an exciting addition to the Auckland food scene.

Behemoth Brewery - Dominion Road, Auckland

Attached to Churly's Bar and Restaurant at the top of Dominion Road in Auckland (see above) Behemoth Brewery will finally mean we have our own production facility after years of begging and borrowing generous offered space in other people's breweries around New Zealand. Commerically having our own brewery is a sensible move as it helps manage the risk of reliance on contract brewing as well as providing a more economic cost base for our beers, but it also offers us the ability to really push the boat out in terms of our seasonal and limited release beers; including the start of our barrel aging and co-fermentation projects. As well as the 3,000L brewery it will feature a 600L trial kit that our brewers can experiment on and also allow us to brew small volume batches for North Hemisphere customers who don't want to be drinking Imperial Stouts in their summer.

It's not all about bigger being better!

.......well, not all the time.

We are very excited about the release of our single serve core range in 330ml printed cans. Previously our single serve core range was in 500ml bottles, but we think that 330ml cans are the future for craft beer. They reduce oxidation and light strike on the beer, they have a lower carbon footprint than glass, they are lighter to transport (once again reducing resource use and carbon emissions) and are much harder for our freight companies to smash! Plus, they look great. Ranged across the Foodstuffs network and traditional liquor we expect to see significant growth in these four core range beers in the next year.

If the Mountain won't come to Churly

Our export sales have grown from virtually zero to over 10% of our revenue in the last two years. Churly's will give us the ability to continue this growth with more allocation of speciality beers to our export customers. Longer term though we think that our export propostion needs to be provisioned from closer to the market, otherwise we will hit a ceiling in terms of what we can sell to the big wide world.

What does this mean? It means we will be looking at options to brew our beers in-market, overseas. This benefit being that the customer gets to drink fresher beer, at a better price as we aren't shipping the beer from the bottom of the world. The upside for us would be that we would sell more beer because of this. Obviously we need to ensure we brew to the same great standards we have in New Zealand and to do this we need to ensure we find partners who have the same passion for quality that we do. We are confident we can do this in time and we will work slowly and methodically to ensure we have everything in place to make such a project a success.

Revenue and Profit Growth

During 2020 we will invest in the above projects and we see that these will start to deliver profit growth, as well as revenue growth from 2021 onwards.

Use of Capital 

Share Offer

Issuing up to 2m shares at the total value of $2m to crowdfunding investors through a crowdfunding offer and up to 1.5m shares at a total value of $1.5m to wholesale investors through a wholesale offer (refer to IM for explainer). This makes the total offer up to 3.5m shares, which constitutes 13.09% of the company. For the crowdfunding issue, the minimum subscribed investment threshold is $1.5m. The wholesale issue does not have a minimum threshold.

 

   

Capitalisation Table

 

About our Team

 

Churly - The Behemoth Monster

Behemoth's friendly neighbourhood monster, Churly, is a mainstay of our branding. He loves dressing up as different characters on our labels. From Presidents to Rappers and Little Old Ladies, nothing daunts Churly.

        

 

Andrew Childs - Managing Director and Head Brewer

AKA, the Beer Giraffe, he's the man with the vision. The founder. He's full of passion for great beer and has a mind overflowing with ideas. When asked who does Behemoth's marketing, his reponse is, "I am the marketing department."

 

 

Hannah Miller-Childs - Operations Manager

A butcher/chef by trade, she jokes that Andrew tricked her into joining Behemoth. An eye for detail was exactly what Behemoth needed and she is now referred to as "Behemoth's glue".

   

Julie Keoghan (CA) - Finance Manager

The money lady. Chartered Accountant and busy mum of three, she’s a natural when it comes to multi-tasking, which comes in handy when organising funds while wrangling debtors. 

   

Roger Kerrison - Commerical and Export Manager

Overseas trade is the name of the game and his diplomatic abilities are second to none. With a strong background in selling craft beer around the world, his knowledge of the business of beer is a daily asset.

 

Andy Graham - Lower New Zealand Sales Manager

Recently married and the newest member of the Behemoth Team, he brings a first hand knowledge of the grocery side of the business having grown up in his parents Four Square. This is perfect for him to build relationships with our accounts in Wellington and the Lower South Island.

 

   

Pearse Shield - Central North Island Sales Manager 

Behemoth’s resident beer geek. If you’re after some knowledge on the newest, rarest, biggest beers, he’s your man. And coming from a background in traditional liquor, he offers great support to our Central North Island customers.

   

Angelo Anapa - Warehouse and Delivery Manager

Forklift driver of the year! When space in the chiller gets a little tight, he always finds a slot for one extra pallet. Between that and keeping the freight companies inline, it’d be a hard days work without him.

   

Sarah Thompson - Auckland On-Premise Sales Rep

Brewer, baker, charcuterie-maker. What can’t this girl do? Her wealth of knowledge from a brewing & hospitality perspective makes her the perfect liaison between Behemoth and Auckland’s on-trade customers.

     

Risks and Challenges

We have thought long and hard about the risks and challenges in delivering our forecasted revenue and profit growth, they are documented below.

Risk

How we’ll mitigate them

BEER QUALITY – the risk of a decline in beer quality from moving to a new premises with new equipment

We will appoint an experienced Head Brewer to work closely with Andrew in the brew pub premises. We plan on moving production slowly to our new brewery. If the beer is not up to scratch, it will not be released to market. Quality is of the utmost importance..

CASHFLOW – the risk of not having enough cashflow or working capital to meet obligations, due to either poor sales or late paying customers

We have good systems to manage and mitigate the risk from late paying customers and we also have a credit policy that limits our exposure to individual customers.

INCREASED COMPETITION – the risk of the market significantly heating up with increased competition

We are a dynamic and resourceful company. As more and more brewing companies enter the market, we plan to keep making beers people enjoy, introducing new brewing techniques, and packaging our beer in new ways. We will continue to do the things that have proved successful previously and continue to grow our market share.

KEY PERSONNEL – the risk of losing key personnel

We pride ourselves on treating staff well, compensating them appropriately, and making them feel part of the team. We plan to retain good staff, but we also appreciate there are times when people will leave Behemoth to further their careers or follow their dreams. We, therefore, have succession plans in place for if key personal move on.

PROFITABILITY – the risk of not operating profitably

We have worked hard to become profitable and sustainable. We have budgets in place and if for any reason they are not met, we will act swiftly to get ourselves back on track. We produce in depth management reports on a monthly basis that examine our performance, including profitability.

PROJECT DELAYS – the risk of the new brewery build being delayed by unforeseen circumstances

We have allowed for the brewery being delayed due to construction delays. We want to open Churly’s Bar/Restaurant by November 2019 to make the most of Christmas and Summer trade. We believe this to be achievable if everything goes to plan, but if it doesn’t occur, we are able to delay the opening until early 2020 without much impact to the bottom line. This is why we are conservatively budgeting in our forecasts. The brewery being delayed will not be too much of an issue as we have supply contracts with brewing partners into 2020.

REGULATORY – the risk of local council regulations halting the new brewery build progress

We are working with the Auckland Council on getting consents for the premises. We will keep very open dialogue with Council about what they need from us. We are solution oriented and will work closely with Council to get everything up and running.

DOWNTURN IN CRAFT BEER CONSUMPTION The risk that demand for craft beer will decline.

We see the risk of a downturn in craft beer consumption being a low risk based on the way more developed craft beer markets around the world have continued to grow.. We have the ability to cater to people's tastes when needed and lead people to try new things at the same time.

LOSS OF SUPPLY - risk of not having beer to sell.

We have contracts with our contract brewing facilities, covering our production well beyond the expected date of our brewing operations getting started. Our risk is very well managed in this area and opening our own production facility will further reduce this risk.

Note from PledgeMe 

We have completed a Veda check on the company and their Director, as well as a Google check. There were no adverse findings. 

 

Updates 7

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WE GOT OUR MINIMUM! $1.5M!

04/07/2019 at 3:24 PM

Hey everyone!

 

Thank you to everyone who has become a chur-holder! We made it to our minimum! Now we are trying to get to our goal of $2m retail investment to bring Churlys to life so if you have not pledged yet or have friends or family who may be intereted in owning a part of the Behemoth Pie tell them to get in by tomorrow.

 

A big Chur to you all.

 

Chur,

Andrew

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    Details

    Offer Details

    Current Valuation 23,243,000
    Raise Minimum 1,500,000
    Raise Maximum 2,000,000
    Share Price 1.00
    Maximum Shares Offered 2,000,000
    Explanation of valuation:

    Our valuation was arrived at by researching and assessing common revenue multiples that have been used to value growing companies in the beverage industry. Standard revenue multiples that have been used tend to be 6 and above the previous years reported revenue, so we have decided to take a conservative approach and use a multiple of 5.5 times our last reported annual revenue.

    Financial Summary

    Prev Year Current Year Est. FY 2021 Est. FY 2022
    Revenue NZ $4,226,000 NZ $5,970,000 NZ $10,237,000 NZ $12,753,000
    Operating Expenses NZ $1,150,000 NZ $1,739,000 NZ $2,524,000 NZ $2,681,000
    EBITDA NZ $308,000 NZ $224,000 NZ $1,186,000 NZ $2,249,000
    Net Profit NZ $212,000 -NZ $134,000 NZ $829,000 NZ $1,854,000

    Company Details

    Company Name: Behemoth Brewing Company Ltd.

    Company Number: 4358759

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Andrew Childs Managing Director https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/4358759/directors

    Questions 19

    Ask a Question (You must login to ask a question)


    Questions sorry...Will you brew only at the new site or continue to partner with and/or contract other breweries to produce? In terms of the volume growth 2016 - 2017 - 2018 is this Jan - Dec calendar year? What forecasts do you have for 2019 and 2020 and on and what do you think the split will be between the new brewery and existing partners? In terms of the brewery what if any interest (I'm sure people in the know are aware) have you had in the Head Brewer and Deputy positions - appreciate this may be way too early in the piece -the only reason I ask is that this role will have a lot to play in the continued success of the brand and what it stands for.

    Posted on 04-06-2019 by David Coyle

    Hi David,
    Thank you for your questions. I will break these down:
    1. Volume growth runs on our FY which is March end.
    2. We plan to continue to work with a number of the contract partners we are currently using, as well as brew our own beers. This year (2019) we will not have an operational brewery and we envisage being fully commissioned and in production by April 2020. By 2021 we have forecasted that our own brewery will account for 30% of our production requirements.
    3. Yes we have started the process for some of the higher level staffing requirements, but are unable to progress our plans any further until we have secured the funding required to build the brewery. We are very aware that whomever we employ in these key positions have a large responsibility given how good our contract brewing partners are in brewing our beers to the recipes and specifications we develop.

    Best, Andrew

    Answered on 04-06-2019 by Behemoth Brewing


    Thank you the update Andrew and we were very keen to invest however as per previous pledge me floats we were prepared to invest $500. We did this twice for parrot dog with their first share float then the second. I just wanted to let you know why we won’t be investing. The minimum pledge of $1000 has put us off so despite wanting to invest in Behemoth we won’t be doing so. We have been regular investors via pledgeme- parrot dog, Ocho chocolate, Denheath’s, nikau trust, hikurangi enterprises and pledgeme NZ shares as well so I feel the minimum is too much. I also have a Sharesies account as well as an ASB share trading account so I’m not a newbie to crowd funding or otherwise

    If you decide to offer a $500 minimum pledge we’d be happy to invest.

    Good luck with your venture 😊

    Kind regards

    Diana

    Diana Ward-Pickering
    33 Puru Crescent
    Lyall Bay
    Wellington 6022

    Posted on 04-06-2019 by Diana Ward-Pickering & Geoff Pickering

    Hi Diana
    Thanks for the question. We have decided to put the minimum investment at $1000 as we feel that is the amount where we can put some really fun rewards in without being financially burdensome. Awesome that you have invested all those great companies (including Parrotdog who are good mates of ours). Sorry that the $1000 is too much for you but we do appreciate you getting in touch.

    Cheers,
    Andrew

    Answered on 05-06-2019 by Behemoth Brewing


    Hi Andrew,
    Good luck with the campaign! I just wanted to second Diana's post - I would be very interested in investing but unfortunately 500 $ is the maximum I could contribute with right now. If there were any changes in your policy, I would be happy to be informed.
    Thank you and all the best! You guys rock!

    Best regards,

    Sofia Rodriguez Rytkonen

    Posted on 05-06-2019 by Sofia Rodriguez Rytkonen

    Hi Sofia

    Appreciate your feedback. Just responded to Diana's post. We really just want to provide some really fun rewards and $500 was not enough to provide those unfortunately. Appreciate the support and sorry it was a bit much for you. But appreciate your comment.

    Cheers,
    Andrew

    Answered on 05-06-2019 by Behemoth Brewing


    Hi, My understanding is that the in-house production facility will have a capacity of 250,000L per year - this is less than half of the 530,000L produced last year. Will there be any room to expand the in-house brewing capacity, or will any additional growth rely on contract brewing partners?

    Posted on 05-06-2019 by Kelvin King

    Hi Kelvin,
    At present there is no strategy to expand the brewing volume as part of our current 3 year plan and we will continue to utilise our contract brewing partners for a large proportion of our brewing needs. Expansion at 1a Charles St will be something we will potentially look at post this 3 year plan.
    Best, Andrew

    Answered on 05-06-2019 by Behemoth Brewing


    Silly question and it might have been mentioned in the IM, but would we be able to sell the shares in the future?

    Posted on 06-06-2019 by Jay Gong

    Hi Jay. Thanks for the question. We do mention it in the IM, but obviously a big document. We are going to be working with Syndex that will be opening up trading windows a few times a year to sell your shares. You can also do sell them privately if you know someone who would like to buy them. Looking forward to hopefully having you be part of our adventures.

    Chur,
    Andrew

    Answered on 06-06-2019 by Behemoth Brewing


    HI guys, is the AGM invitation a yearly occurrence for as long as you hold the shares, or a one off? and does the "free shipping for rewards" mean that you'd get free shipping on the reward "first rights to purchase annual & limited release beer" as I would most likely be buying every new release. Thanks in advance.

    Posted on 06-06-2019 by Russell Black

    Hi Russell
    Good Question there. The AGM is a yearly invite for as long as you own shares. The free shipping is for beers that we ship out as part of the main reward (ie a can of Visit our brew pub IPA and shareholder only beers will be free shipping. Unfortunately we can't do free shipping on everything as sometime shipping costs more than the beer (freight is pretty pricey in NZ) but we do have free shipping on 12 cans or bottles or more. Hope that answers your question. We look forward to hopefully having you on board!

    Chur,
    Andrew

    Answered on 06-06-2019 by Behemoth Brewing


    Hi Andrew, really keen to invest and be a part of the journey. Just a couple of questions, and again, apologies if these are covered in the IM already.
    1) Are you able to divulge the directors remunerations?
    2) Can you elaborate on your plans post 3 years - as a crafty craft beer brewer are you vehemently opposed to a buy out a la Panhead/Tuatara, or do you lean towards a float (Moa)? Or more private equity?
    3) The multiples - it would have been good to see the revenue multiples of Panhead and Tuatara in the table (or alternatively, the revenues of Panhead and Tuatara pre-buyout). Can you share this information? Also, other recent crowd funding by Renaissance and Zeffer were at 3.3x multiples - can you outline why Behemoth is above these?
    4) Do you anticipate improved economies of sale by having your own premises to brew, thus improving your gross profit margin above 35%?
    5) I recently spent months in the states, touring round in an RV basically going to brew pubs - what are you going to do at Churly's to create a unique vibe and stand out as somewhere cool to hang out (in an increasingly competitive market)? And also, what community involvement initiatives do you have in mind?

    thanks,
    matt

    Posted on 06-06-2019 by Matt Lloyd

    Hi Matt
    Thanks for the questions mate. I will answer them as best I can below:
    1) We currently do not pay any Directors Fees. The Directors are all also operational management in the business deriving market salaries for their roles as part of their employment agreements. By they I mean me. We have budgeted a small amount for directors fees for directors coming on later in the year.
    2) It is probably quite difficult for us to elaborate post 3 years in terms of strategy as our plans 3 years ago would be vastly different to what they are today, this is how fast the industry evolves. We will focus on delivering our forecasts in the next 3 years and if we achieve those, it will put us in a situation to potentially have one or all of the options above on the table.
    3) The revenue multiples weren't published by the purchasers of Tuatara and Panhead, so we are unable to include them. In terms of the valuation for Behemoth the multiple is also less than a number of successful crowdfunding raises recently, so we think it sits somewhere in the middle what the market is willing to pay to invest in craft breweries.
    4) We do anticipate economies of scale come the 2021 financial year from our own production, our budgeted gross margin is to remain at consistent with past periods.
    5) Great question! We have thought long and hard on this and think that our food focus of nose-to-tail butchery will really offer us a unique offering. We'll not only change the menu daily, based on what part of the carcass we are up to, but will have the butchery process on display along with our 1,000kg meat drying room. Churly's will be focused on making our operations transparent so the customer can always see what is going on; butchery, brewing, & cooking. They can also be part of the processes with butchery classes and specific beer and meat events. As far as our community involvement goes, the sky is the limit! We are excited to support local social sport teams, home-brew clubs, dog groups, local performers, etc.

    Cheers,
    Andrew

    Answered on 06-06-2019 by Behemoth Brewing


    Hi Team Behemoth,
    Firstly - well done on getting the business to where it is and secondly on a compelling investment pitch - no mean feat. I have a couple of questions:
    1. I have friends all around the world who have visited NZ and love craft beer, can they invest?
    2. I appreciate the way valuation works in growing companies - EBIT multiples don't work and some times the multiple of revenue look a bit high - it will be what the market is willing to pay after all and 1/3 of the way there already who am I to question - I think more importantly on the valuation when do you think the business will stop doing a cash burn and start delivering profit in line with growth?
    Thx. Rich

    Posted on 06-06-2019 by Mr Kay-Ne

    Hi Rich,

    Thanks for the kind words. Yes it hasn't all been beer and skittles to get things to where they are today.

    Lots of hard work, support and some really great staff. To answer your question:

    1. Yes your friends may be able to invest. International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor” within the meaning of the Financial Markets Conduct Act 2013, which is further explained through our wholesale offer: https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale.

    2. A lot of this raise is allocated to capital build for the brewpub, so we will continue to be cashflow negative for at least the next 12 months. After that we are budgeting for positive cashflow on a month by month basis - apart maybe from August because of July when it seems like the entire does not seem quite so thirsty. We are focused on ensuring that the business continues to stand on it own two feet as it has the last year.

    Cheers,
    Andrew

    Answered on 10-06-2019 by Behemoth Brewing


    Hi,

    I didn't see anything in the IM relating to exit (aside from the secondary trading events). What is the ambition of the founders? In regards to the secondary market events, what guidance will be provided by directors regarding company performance and value of shares vis a vie valuation in this round?

    Posted on 06-06-2019 by Rupert Jones

    Hi Rupert
    Please see below

    Answered on 07-06-2019 by Behemoth Brewing


    Also in relation to exit, what would you anticipate a likely exit multiple to be especially given you will effectively have a hospitality business (which typically trade at a low EBITDA multiple) and a craft beer brand? Given that the starting point is a multiple of more than 5x revenue it's not clear to me where the opportunity is for investor capital gain.

    Given craft beer in NZ seems to be heavily saturated (we have more craft brewers in NZ per capital than the USA), what gives you confidence you can grow at the rate and scale as forecast in your financials? My sense is that more than doubling your current beer sales in 3 years will be challenging and cost more than forecast. I think it will become increasingly tough for craft beer brands to get cut through given a punter can go to a Lion owned bar & restaurant and pick up a SuperCharger (nectar of the gods), and the supermarket shelves are littered with craft brews from all over the place.

    Also, will you be updating this offer with any Q&A that is taking place on the wholesale offer?

    Posted on 06-06-2019 by Rupert Jones

    Hi Rupert,

    Thank you for your questions, you seem to have good knowledge of the challenges we face as an independent craft brewer and also the investment process.

    Let me answer your questions one by one:

    Exit?

    In terms of exit we have not specifically outlined this in our strategy, as we think it would erroneous to make promises that we may be unable to deliver to shareholders in the next 3 years. A strategy purely related to buyout would be very different to what we are currently planning for the next 3 years. If we were looking purely a getting bought out we would be chasing market share at the expense of our gross margin and making beers that perhaps aren't the type that Behemoth is known for, even then there is no as of right guarantee that a big multi-national will buy you. Bluntly, that is not our strategy. As I mention in an above answer I believe that if we focus on delivering the 3 year forecast we will put ourselves in a situation where perhaps we will be a brand and a company that has interest in investment from more private equity, a liquidity event or perhaps merger and acquisition.

    Secondary Market?

    I think what you are asking is what will provide in terms of secondary market sales data. As such we will not control the sale of secondary market shares, but we believe that Syndex will publish a sell and buy price like a normal exchange and also last sale. We would encourage people to use Syndex in trading windows, but they can also sell shares privately and this data would not necessarily be captured.

    Saturation?

    We have discussed in our IM the competitive market of craft beer in New Zealand and the challenges this presents. We have also outlined why we believe we are able to continue growing the business in a market that has become more and more saturated. See specifically page 6 onwards. We also think it's great that the beer drinker can access decent macro-owned "craft" beer in tied pubs and bars. Craft beer is about variety and that will drive drinkers to try more and more craft beers, including independently owned ones like ourselves.

    Wholesale Offer?

    A good point and for retail investors they can view the wholesale offering here and any questions raised. We will put similar on the wholesale page. https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale

    Answered on 07-06-2019 by Behemoth Brewing


    Hi there,
    I just wanted to check that there was no requirement to hold a Syndex account outside of trading shares through them. They look to charge a $60 per annum fee on their accounts, which would eat away substantially on a minimum investment amount of $1000 if this had to be paid annually.
    Thanks,
    Andrew

    Posted on 07-06-2019 by Andrew Pope

    Hi Andrew,
    We have asked Syndex and their reply is:

    "It’s best if shareholders do hold an account, then Behemoth will be able to communicate with them easier through the portal and they can trade if they wish.
    Second part to the answer - shareholders won’t be charged $60, they only incur a brokerage cost when they sell their shares or buy more - which will be 0.1% of the trade value or a minimum charge of $125 to ensure all the admin is convered."

    If you have an further questions about this Ross Verry will be able to answer any questions: [email protected]
    Cheers,
    Andrew

    Answered on 07-06-2019 by Behemoth Brewing


    Hi Guys, any thoughts of providing something for home brewing pledgeors? Perhaps an evening with the brewers, on-sale of bulk grain or hops, or access to yeast slurry?

    Posted on 11-06-2019 by James Dare

    Hey James

    Great question. We do plan to do evenings with the brewers, brew days and educational stuff for homebrewers (like fault training etc), we have always been open with our recipes (we publish a recipe in every beer and brewer magazine) and help for the home brew community. Bulk grain, hops and slurry we will have to look into logistically with our inventory systems but it is something I'm keen to do if we are able to. Freaking good question. Happy Brewing!

    Chur,
    Andrew

    Answered on 11-06-2019 by Behemoth Brewing


    Hi Andrew,
    Firstly, congrats on the success of Behemoth so far, great brews and I'm sure many, many more on the ways!! Given the large chunk of capital that is proposed to be allocated towards Churly's fit-out (not directly related to the sites future brewing operations) and the significant forecast revenue from 'Hospo and retail trading Revenue' on Pg25, my questions below are on aspects of the restaurant and retail trading assumptions in your forecasts. In no particular order:
    i) Seating numbers planned in the Churly's restaurant fit-out design?
    ii) Floor size of the designated retail space at Churly's?
    iii) Max numbers of retail visitors forecast to the site at any one time? (perhaps limited by HSE etc)
    iv) What assumptions in the financials have been used to forecast the retail trading revenue each FY out to 2022. I'm particularly interested in assumptions surrounding daily/weekly/monthly eating restaurant customers numbers (which ever has been used), daily/weekly/monthly drinking only customer numbers, average bill spend/visitor, split between 'on' and 'off' license retail beer sales going forward, any seasonal effects considered critical in the forecasting proposed?

    Changing tack - regarding the 'beer trading' revenue - (v) can you supply the forecast revenue split between domestic and int'l sales each year out to FY2022 used. Also what 'beer trading' price inflation (if any) is built into the 'beer trading' revenue forecasts (interested to see that verse beer volume forecast increases).
    vi) Can you add a bit more flavour on what differences (visible or otherwise) can be expected in the case of NZD1.5m raise verse the full NZD3.5m raise (bit of an open ended Q for u!). One that jumps out from my side is the lack of 'export staff mid 2020' in the event NZD1.5m raised and how this scenario impacts the topline revenue forecasts touched on above.

    Congrats again, look forward to hearing more on the above.
    Cheers
    Dave

    Posted on 11-06-2019 by David Witkowski

    Hi David

    Sorry for the delayed response to this, snuck past us. Appreciate you like the beers... yes many, many more on the way :) I will answer in turn. Hope to have you aboard soon.

    Answers below:

    1) Seating numbers planned - 140 seat capacity

    2) Floor size of Churly's is 280m2 (incl 100m2 courtyard)

    3) Max retail visitors 238

    4) We undertook a very indepth budgeting process for Churly's and the average spend and seatings varies depending on the day of the week and the time of the day, as well as time of year. From $30 a head per lunch during the week to $50 per head on a sunday lunchtime. We are budgeting when up and running fully a 75% capacity. 16% of our restaurant turnover will be retail (off premise sales).

    5) Split between domestic & export:
    FY 2020 FY 2021 FY 2022
    Domestic 4,950k 6,354k 7,378k
    Export 660k 750k 1,200k

    We have assumed no increase in beer pricing over this period.

    6) The breakdown of spending is detailed on page 18 of the IM which details what will be spent if we raise $1.5m vs $3.5m

    Answered on 18-06-2019 by Behemoth Brewing


    This pledge me thing is all new to me, being an American, but my question is, AS an American, can I participate? You guys are truly talented and one of my favorite NZ beers. I'd love to be a part of this!

    Posted on 14-06-2019 by Audry Henniger

    Hi Audrey unfortunately it is only open to New Zealand Residents (unless you are a wholesale investor) it is a real shame as we have had some good interest from overseas but unfortunately those are the rules at the moment. So glad you like our beers and if you have any other questions please feel free to email me on [email protected]
    Cheers,
    Andrew

    Answered on 15-06-2019 by Behemoth Brewing


    Hi Andrew,

    Thanks for the opportunity to invest in this legendary operation! Couple of questions from the IM:
    1) What info can we expect to get as shareholders, other than the annual report? Will there be quarterly financials, monthly volumes, or anything like that?
    2) I note that you're forecasting the same $ per liter of beer for both cost and sales value in your FYE2022 forecast as you have reported for the current FY. Couple of questions fall out of this:
    i) How will you respond to price pressure with the increasing number of craft brewers? I'd expect that between this and pressure from foodstuffs to have your products on deeper cuts for sales will drive your sales value per liter down. If the cost to produce stays the same, this will dig into your GP quite hard. Any thoughts around this?
    ii) I'd imagine that $ per litre would be a bit more stable for your sales to pubs etc. What percentage of your local beer sales are in grocery vs in pubs vs in liquor stores?
    iii) I see that you'll only be brewing around 30% from your brew bar location. Will the brewery portion of the rent be covered entirely by the beer cost of sales, or will that be coming out of the beer operating expenses?
    3) I see you have around $1.3m in current and non-current liabilities. The IM mentions a $400k loan from Reg Field, are you able to detail the other $0.9m and what it's been used for?

    Posted on 18-06-2019 by Reuben Posthuma

    Hi Reuben
    Thanks for the questions. Glad you love what we do! I will answer in turn.
    1) What info can we expect to get as shareholders, other than the annual report? Will there be quarterly financials, monthly volumes, or anything like that?

    We will be providing periodic updates to all shareholders (chur-holders), along with financial information before Syndex trading windows open up so people full informed decisions if they are to trade their shares.

    2) I note that you're forecasting the same $ per liter of beer for both cost and sales value in your FYE2022 forecast as you have reported for the current FY. Couple of questions fall out of this:
    i) How will you respond to price pressure with the increasing number of craft brewers? I'd expect that between this and pressure from foodstuffs to have your products on deeper cuts for sales will drive your sales value per liter down. If the cost to produce stays the same, this will dig into your GP quite hard. Any thoughts around this?

    So far it would seem that the independent small and medium craft brewers in New Zealand have, on the most part, resisted the urge to race to the bottom in terms pricing.
    We expect that this will be the status quo, as outlined in a previous question we are not planning to sacrifice profit margin for out and out market share.
    In terms of grocery price pressures; we have a great relationship with Foodstuffs, and they are 100% supportive that craft beer is not a segment where they can be super aggressive with driving supplier pricing downwards.

    Without New World’s support for craft beer over the last 15 years, there would be no craft industry in New Zealand, and Foodstuffs are very aware that the category delivers their stores' good margins while allowing craft breweries to make some return themselves. It would require a shift in a paradigm that has been in place for the last 15 years for us to get caught in a deep cut discounting war.

    ii) I'd imagine that $ per litre would be a bit more stable for your sales to pubs etc. What percentage of your local beer sales are in grocery vs in pubs vs in liquor stores?
    Our experience is that neither on or off premise are unstable in terms of pricing. We have a good mix between these sales channels, with grocery a slightly higher percentage.

    iii) I see that you'll only be brewing around 30% from your brew bar location. Will the brewery portion of the rent be covered entirely by the beer cost of sales, or will that be coming out of the beer operating expenses?
    Rent is below the line in the operating expenses.

    3) I see you have around $1.3m in current and non-current liabilities. The IM mentions a $400k loan from Reg Field, are you able to detail the other $0.9m and what it's been used for?
    This is a mixture of accounts payable, tax liabilities, vehicle loans and leave accrual.

    Answered on 18-06-2019 by Behemoth Brewing


    What's the difference between this pledge and https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale ?

    Posted on 19-06-2019 by HappyEvilSlosh

    Hey HappyEvil Slosh

    Have also answered you on the wholesale page but will cut and paste here so everyone can see the samething:

    There is no difference in rewards or class of shares. It is simply that we can only raise $2m from retail investors and the maximum total we are after is $3.5m.
    Whole sale investors allow us to go over $2m, but they also are included in the total wholesale for our minimum raise amount of $1.5m. Hope that answers your questions. Anything else you can email me [email protected]

    Cheers,
    Andrew

    Answered on 19-06-2019 by Behemoth Brewing


    Morning, I am asking on behalf of a 5 man social group who are very interested in pledging. If we were to pledge as a bronze membership would we all receive the birthday gift pack , the hat, t-shirts , chalice and pin?. Cheers Ash

    Posted on 03-07-2019 by Ash Flitten

    Hi Ash

    Thanks for the question. We can't really do that as we have budgeted it for 1 person for $2500, it would have to be split between you. But flick an email to [email protected] and we can figure out a way to make it work for you.

    Cheers,
    Andrew

    Answered on 03-07-2019 by Behemoth Brewing


    Hi - a couple of quick ones. 1) I don't see a separate capital contingency for the 1.5M budget, if your capex budgets are exceeded in certain areas, what is the plan to manage (eg reduce scope/ quality, take from other planned capex, etc)? 2) I don't know Auckland too well but curious about the plan for parking to accommodate the many full houses you'll get for Churly's. Thanks.

    Posted on 03-07-2019 by Don Bartkowiak

    Hi Don
    Thanks for the questions will answer in turn.
    1) Page 18 we go over our $1.5m and $3.5m budgets. We do have buffers in there for each rate of investment.
    2) We are planning on paying for some car parks from local nearby businesses and there is some street parking in the area.

    Cheers,
    Andrew

    Answered on 03-07-2019 by Behemoth Brewing


    Maybe a silly question but I am fairly new to this. In two days once the time frame to obtain the targeted pledge value is up what happens? Will you set this up again as I see there are a lot of followers. The reason I ask is that I have just reviewed this but need more time to review. Also, if it hits the target in a late flurry does it close off once the two days is up or can you still pledge after this time?

    Posted on 03-07-2019 by Jonathan Percy

    Hi Jonathan
    Not a silly question at all. In 2 days once the time frame closes that will be it. We don't have any plans again to set this up (I cannot even tell you how much work this is). We hope to hit our minimum target tonight or tomorrow (about $26k to go when writing this). You won't be able to pledge after then I don't think. If you have any questions to get you over the line before Friday night, give me an email [email protected]

    Cheers,
    Andrew

    Answered on 03-07-2019 by Behemoth Brewing

    Pledgers 627

    Andrew
    2019-07-04 19:46:51 +1200
    Jessica
    2019-07-04 19:20:03 +1200
    Cameron D
    2019-07-04 19:07:11 +1200
    guillaume clin
    2019-07-04 19:06:37 +1200

    "all the best and I hops to drink a lot of new amazing beers"

    Anthony Strevens
    2019-07-04 18:43:09 +1200
    Bill Rattenbury
    2019-07-04 18:41:33 +1200
    Paul Siratovich
    2019-07-04 18:14:25 +1200
    Dan Emsley
    2019-07-04 18:00:15 +1200

    "Good luck Andrew! Stoked to be an investor!"

    Matt Hope
    2019-07-04 17:53:21 +1200
    Russell Campbell
    2019-07-04 17:36:45 +1200
    SAMUEL FRAME
    2019-07-04 16:33:20 +1200
    Justin Wilson
    2019-07-04 16:21:10 +1200
    Adam Johnston
    2019-07-04 16:07:26 +1200
    Alan Owen
    2019-07-04 15:26:51 +1200
    SAMUEL FRAME
    2019-07-04 15:16:56 +1200
    Hemi James Paurini
    2019-07-04 15:15:42 +1200
    Jade Brandon
    2019-07-04 14:40:45 +1200
    Patrick
    2019-07-04 14:37:39 +1200
    James Miller
    2019-07-04 14:34:26 +1200
    Joanna Wang
    2019-07-04 14:15:37 +1200
    Jared Percival
    2019-07-04 12:59:38 +1200

    "DAHEMOTH is ONFORMOTH!"

    Paul Trevor
    2019-07-04 12:18:47 +1200
    Wayne Strong
    2019-07-04 11:49:51 +1200

    "Excited to be involved in this project. I've always wanted to own a brewery and this is easier than convincing my wife to let me buy one."

    Alison Knight
    2019-07-04 11:40:06 +1200
    James Conroy
    2019-07-04 11:19:00 +1200

    "GL team. Not that you'll need it"

    Liz Pellow
    2019-07-04 10:47:33 +1200
    Owen Lyttelton
    2019-07-04 09:39:08 +1200
    David Lucas
    2019-07-04 09:03:01 +1200
    Ally Holden
    2019-07-04 08:51:30 +1200

    "Cheers!"

    TRACEY FISHER
    2019-07-04 08:33:30 +1200

    Behemoth Brewing

    We are sorry you missed the current round of crowdfunding, which closed with 635 new shareholders in Behemoth Brewing and $2.06m of capital raised. Please feel free to register your interest in investing in future Behemoth crowdfunding campaigns, or the possibility of purchasing shares off existing shareholders.  

    Behemoth combined raise

    The investment offer will only be accepted if a total of $1.5m NZD, or over, has been pledged from the crowdfunding offer and/or wholesale offer by 15 July 2019.

    Behemoth Brewing Company (Behemoth) was created in 2013, the dream of Andrew Childs; a beer nerd, beer drinker and home brewer (and sometimes referred to as the Beer Giraffe, due to being really bloody tall).

    In the last six years Behemoth has come a long way. It has gone from doing a 1,200 litre brew once every few months to brewing more than 530,000 litres of beer in the last year.  This means someone drinks a pint of Behemoth every 30 seconds, somewhere in the world. Now, that is a little crazy.

    We are currently the 4th biggest independent craft brewery in grocery sales in New Zealand and we are now ready to put the foot on the gas by establishing our own brewery and restaurant in Auckland.  

    We haven chosen to equity crowdfunding because we wanted to provide our supporters with the opportunity to Be Part of Behemoth’s Home; part of our story. A story of big beers and cheeky antidotes, a brewery, a new food and beer experience hub, and a thriving and exciting industry. 

    The benefit in using a crowdfunding platform like PledgeMe also means that we can include additional rewards with each share package or parcel sold, adding additional benefits to those whom purchase shares in Behemoth.

    We have come up with some great benefits that Behemoth shareholders (Chur-holders) will enjoy, in addition to the share in the company they gain through their investment. The investment level chosen will determine the contents of the package and membership level.

    P.S. We think they are pretty freaking sweet!

     

     

    What we've done so far

    Behemoth achievements

     Annoyed the leader of the free world?  TICK

     And the leader of the non free world?  TICK

    Given it to the Aussies?  TICK 

    Learnt some sweet brewery yoga moves?  TICK

    Behemoth has grown rapidly since it was started in 2013 when we brewed our first beer "Celia Wade Brown Ale". The beers and puns have come thick and fast since and we have brewed over 125 unique beers in 6 years. We are now one of the largest independent craft brewers in New Zealand.

     

    In the previous financial year our revenues grew by 136% as we focused on strengthening our domestic and export sales. For the first time we put our beers into 6 packs, we really ramped up the brewing of our 440ml limited release beers and shipped our beers to 11 export markets. This delivered a net profit for the first time as the business starts to mature. We look forward to doing more of the same in 2020 and onwards.

     

    What's next?

    Our strategy over the next three years is to continue to grow Behemoth domestically and overseas. We have some exciting things in the works to ensure this growth!

    Churly's Bar and Restaurant - Dominion Road, Auckland

    Attached to the new production facility at the top of Dominion Road in Auckland (see below) Churly's will be a brewpub with a difference. It will offer all the usual things you would expect from Behemoth and a tap room; a welcoming local place for a casual Behemoth beer, a place to bring out of towners to do tastings and tours and a place to buy beers for takeaway to drink at home (or even better someone elses home). But.....it will be something different from your usual craft beer tap room with the addition of a food and beer matching restaurant. The restaurant will focus on a nose to tail menu that will be supplied by our onsite butchery. We feel that this sustainable and low waste dining experience with a true focus on food and beer matching will be an exciting addition to the Auckland food scene.

    Behemoth Brewery - Dominion Road, Auckland

    Attached to Churly's Bar and Restaurant at the top of Dominion Road in Auckland (see above) Behemoth Brewery will finally mean we have our own production facility after years of begging and borrowing generous offered space in other people's breweries around New Zealand. Commerically having our own brewery is a sensible move as it helps manage the risk of reliance on contract brewing as well as providing a more economic cost base for our beers, but it also offers us the ability to really push the boat out in terms of our seasonal and limited release beers; including the start of our barrel aging and co-fermentation projects. As well as the 3,000L brewery it will feature a 600L trial kit that our brewers can experiment on and also allow us to brew small volume batches for North Hemisphere customers who don't want to be drinking Imperial Stouts in their summer.

    It's not all about bigger being better!

    .......well, not all the time.

    We are very excited about the release of our single serve core range in 330ml printed cans. Previously our single serve core range was in 500ml bottles, but we think that 330ml cans are the future for craft beer. They reduce oxidation and light strike on the beer, they have a lower carbon footprint than glass, they are lighter to transport (once again reducing resource use and carbon emissions) and are much harder for our freight companies to smash! Plus, they look great. Ranged across the Foodstuffs network and traditional liquor we expect to see significant growth in these four core range beers in the next year.

    If the Mountain won't come to Churly

    Our export sales have grown from virtually zero to over 10% of our revenue in the last two years. Churly's will give us the ability to continue this growth with more allocation of speciality beers to our export customers. Longer term though we think that our export propostion needs to be provisioned from closer to the market, otherwise we will hit a ceiling in terms of what we can sell to the big wide world.

    What does this mean? It means we will be looking at options to brew our beers in-market, overseas. This benefit being that the customer gets to drink fresher beer, at a better price as we aren't shipping the beer from the bottom of the world. The upside for us would be that we would sell more beer because of this. Obviously we need to ensure we brew to the same great standards we have in New Zealand and to do this we need to ensure we find partners who have the same passion for quality that we do. We are confident we can do this in time and we will work slowly and methodically to ensure we have everything in place to make such a project a success.

    Revenue and Profit Growth

    During 2020 we will invest in the above projects and we see that these will start to deliver profit growth, as well as revenue growth from 2021 onwards.

    Use of Capital 

    Share Offer

    Issuing up to 2m shares at the total value of $2m to crowdfunding investors through a crowdfunding offer and up to 1.5m shares at a total value of $1.5m to wholesale investors through a wholesale offer (refer to IM for explainer). This makes the total offer up to 3.5m shares, which constitutes 13.09% of the company. For the crowdfunding issue, the minimum subscribed investment threshold is $1.5m. The wholesale issue does not have a minimum threshold.

     

       

    Capitalisation Table

     

    About our Team

     

    Churly - The Behemoth Monster

    Behemoth's friendly neighbourhood monster, Churly, is a mainstay of our branding. He loves dressing up as different characters on our labels. From Presidents to Rappers and Little Old Ladies, nothing daunts Churly.

            

     

    Andrew Childs - Managing Director and Head Brewer

    AKA, the Beer Giraffe, he's the man with the vision. The founder. He's full of passion for great beer and has a mind overflowing with ideas. When asked who does Behemoth's marketing, his reponse is, "I am the marketing department."

     

     

    Hannah Miller-Childs - Operations Manager

    A butcher/chef by trade, she jokes that Andrew tricked her into joining Behemoth. An eye for detail was exactly what Behemoth needed and she is now referred to as "Behemoth's glue".

       

    Julie Keoghan (CA) - Finance Manager

    The money lady. Chartered Accountant and busy mum of three, she’s a natural when it comes to multi-tasking, which comes in handy when organising funds while wrangling debtors. 

       

    Roger Kerrison - Commerical and Export Manager

    Overseas trade is the name of the game and his diplomatic abilities are second to none. With a strong background in selling craft beer around the world, his knowledge of the business of beer is a daily asset.

     

    Andy Graham - Lower New Zealand Sales Manager

    Recently married and the newest member of the Behemoth Team, he brings a first hand knowledge of the grocery side of the business having grown up in his parents Four Square. This is perfect for him to build relationships with our accounts in Wellington and the Lower South Island.

     

       

    Pearse Shield - Central North Island Sales Manager 

    Behemoth’s resident beer geek. If you’re after some knowledge on the newest, rarest, biggest beers, he’s your man. And coming from a background in traditional liquor, he offers great support to our Central North Island customers.

       

    Angelo Anapa - Warehouse and Delivery Manager

    Forklift driver of the year! When space in the chiller gets a little tight, he always finds a slot for one extra pallet. Between that and keeping the freight companies inline, it’d be a hard days work without him.

       

    Sarah Thompson - Auckland On-Premise Sales Rep

    Brewer, baker, charcuterie-maker. What can’t this girl do? Her wealth of knowledge from a brewing & hospitality perspective makes her the perfect liaison between Behemoth and Auckland’s on-trade customers.

         

    Risks and Challenges

    We have thought long and hard about the risks and challenges in delivering our forecasted revenue and profit growth, they are documented below.

    Risk

    How we’ll mitigate them

    BEER QUALITY – the risk of a decline in beer quality from moving to a new premises with new equipment

    We will appoint an experienced Head Brewer to work closely with Andrew in the brew pub premises. We plan on moving production slowly to our new brewery. If the beer is not up to scratch, it will not be released to market. Quality is of the utmost importance..

    CASHFLOW – the risk of not having enough cashflow or working capital to meet obligations, due to either poor sales or late paying customers

    We have good systems to manage and mitigate the risk from late paying customers and we also have a credit policy that limits our exposure to individual customers.

    INCREASED COMPETITION – the risk of the market significantly heating up with increased competition

    We are a dynamic and resourceful company. As more and more brewing companies enter the market, we plan to keep making beers people enjoy, introducing new brewing techniques, and packaging our beer in new ways. We will continue to do the things that have proved successful previously and continue to grow our market share.

    KEY PERSONNEL – the risk of losing key personnel

    We pride ourselves on treating staff well, compensating them appropriately, and making them feel part of the team. We plan to retain good staff, but we also appreciate there are times when people will leave Behemoth to further their careers or follow their dreams. We, therefore, have succession plans in place for if key personal move on.

    PROFITABILITY – the risk of not operating profitably

    We have worked hard to become profitable and sustainable. We have budgets in place and if for any reason they are not met, we will act swiftly to get ourselves back on track. We produce in depth management reports on a monthly basis that examine our performance, including profitability.

    PROJECT DELAYS – the risk of the new brewery build being delayed by unforeseen circumstances

    We have allowed for the brewery being delayed due to construction delays. We want to open Churly’s Bar/Restaurant by November 2019 to make the most of Christmas and Summer trade. We believe this to be achievable if everything goes to plan, but if it doesn’t occur, we are able to delay the opening until early 2020 without much impact to the bottom line. This is why we are conservatively budgeting in our forecasts. The brewery being delayed will not be too much of an issue as we have supply contracts with brewing partners into 2020.

    REGULATORY – the risk of local council regulations halting the new brewery build progress

    We are working with the Auckland Council on getting consents for the premises. We will keep very open dialogue with Council about what they need from us. We are solution oriented and will work closely with Council to get everything up and running.

    DOWNTURN IN CRAFT BEER CONSUMPTION The risk that demand for craft beer will decline.

    We see the risk of a downturn in craft beer consumption being a low risk based on the way more developed craft beer markets around the world have continued to grow.. We have the ability to cater to people's tastes when needed and lead people to try new things at the same time.

    LOSS OF SUPPLY - risk of not having beer to sell.

    We have contracts with our contract brewing facilities, covering our production well beyond the expected date of our brewing operations getting started. Our risk is very well managed in this area and opening our own production facility will further reduce this risk.

    Note from PledgeMe 

    We have completed a Veda check on the company and their Director, as well as a Google check. There were no adverse findings. 

     

    You need to pledge to see this update.

    You need to pledge to see this update.

    You need to pledge to see this update.

    WE GOT OUR MINIMUM! $1.5M!

    04/07/2019 at 3:24 PM

    Hey everyone!

     

    Thank you to everyone who has become a chur-holder! We made it to our minimum! Now we are trying to get to our goal of $2m retail investment to bring Churlys to life so if you have not pledged yet or have friends or family who may be intereted in owning a part of the Behemoth Pie tell them to get in by tomorrow.

     

    A big Chur to you all.

     

    Chur,

    Andrew

    You need to pledge to see this update.

    You need to pledge to see this update.

    You need to pledge to see this update.

      Offer Details

      Current Valuation 23,243,000
      Raise Minimum 1,500,000
      Raise Maximum 2,000,000
      Share Price 1.00
      Maximum Shares Offered 2,000,000
      Explanation of valuation:

      Our valuation was arrived at by researching and assessing common revenue multiples that have been used to value growing companies in the beverage industry. Standard revenue multiples that have been used tend to be 6 and above the previous years reported revenue, so we have decided to take a conservative approach and use a multiple of 5.5 times our last reported annual revenue.

      Financial Summary

      Prev Year Current Year Est. FY 2021 Est. FY 2022
      Revenue NZ $4,226,000 NZ $5,970,000 NZ $10,237,000 NZ $12,753,000
      Operating Expenses NZ $1,150,000 NZ $1,739,000 NZ $2,524,000 NZ $2,681,000
      EBITDA NZ $308,000 NZ $224,000 NZ $1,186,000 NZ $2,249,000
      Net Profit NZ $212,000 -NZ $134,000 NZ $829,000 NZ $1,854,000

      Company Details

      Company Name: Behemoth Brewing Company Ltd.

      Company Number: 4358759

      Company details are currently being synced with the Companies Office, please wait.

      Company Documents

      Documents no longer available to download, as this campaign has closed

      Director Details

      Name Role Profile URL Invested?
      Andrew Childs Managing Director https://app.companiesoffice.govt.nz/companies/app/ui/pages/companies/4358759/directors

      Ask a Question (You must login to ask a question)


      Questions sorry...Will you brew only at the new site or continue to partner with and/or contract other breweries to produce? In terms of the volume growth 2016 - 2017 - 2018 is this Jan - Dec calendar year? What forecasts do you have for 2019 and 2020 and on and what do you think the split will be between the new brewery and existing partners? In terms of the brewery what if any interest (I'm sure people in the know are aware) have you had in the Head Brewer and Deputy positions - appreciate this may be way too early in the piece -the only reason I ask is that this role will have a lot to play in the continued success of the brand and what it stands for.

      Posted on 04-06-2019 by David Coyle

      Hi David,
      Thank you for your questions. I will break these down:
      1. Volume growth runs on our FY which is March end.
      2. We plan to continue to work with a number of the contract partners we are currently using, as well as brew our own beers. This year (2019) we will not have an operational brewery and we envisage being fully commissioned and in production by April 2020. By 2021 we have forecasted that our own brewery will account for 30% of our production requirements.
      3. Yes we have started the process for some of the higher level staffing requirements, but are unable to progress our plans any further until we have secured the funding required to build the brewery. We are very aware that whomever we employ in these key positions have a large responsibility given how good our contract brewing partners are in brewing our beers to the recipes and specifications we develop.

      Best, Andrew

      Answered on 04-06-2019 by Behemoth Brewing


      Thank you the update Andrew and we were very keen to invest however as per previous pledge me floats we were prepared to invest $500. We did this twice for parrot dog with their first share float then the second. I just wanted to let you know why we won’t be investing. The minimum pledge of $1000 has put us off so despite wanting to invest in Behemoth we won’t be doing so. We have been regular investors via pledgeme- parrot dog, Ocho chocolate, Denheath’s, nikau trust, hikurangi enterprises and pledgeme NZ shares as well so I feel the minimum is too much. I also have a Sharesies account as well as an ASB share trading account so I’m not a newbie to crowd funding or otherwise

      If you decide to offer a $500 minimum pledge we’d be happy to invest.

      Good luck with your venture 😊

      Kind regards

      Diana

      Diana Ward-Pickering
      33 Puru Crescent
      Lyall Bay
      Wellington 6022

      Posted on 04-06-2019 by Diana Ward-Pickering & Geoff Pickering

      Hi Diana
      Thanks for the question. We have decided to put the minimum investment at $1000 as we feel that is the amount where we can put some really fun rewards in without being financially burdensome. Awesome that you have invested all those great companies (including Parrotdog who are good mates of ours). Sorry that the $1000 is too much for you but we do appreciate you getting in touch.

      Cheers,
      Andrew

      Answered on 05-06-2019 by Behemoth Brewing


      Hi Andrew,
      Good luck with the campaign! I just wanted to second Diana's post - I would be very interested in investing but unfortunately 500 $ is the maximum I could contribute with right now. If there were any changes in your policy, I would be happy to be informed.
      Thank you and all the best! You guys rock!

      Best regards,

      Sofia Rodriguez Rytkonen

      Posted on 05-06-2019 by Sofia Rodriguez Rytkonen

      Hi Sofia

      Appreciate your feedback. Just responded to Diana's post. We really just want to provide some really fun rewards and $500 was not enough to provide those unfortunately. Appreciate the support and sorry it was a bit much for you. But appreciate your comment.

      Cheers,
      Andrew

      Answered on 05-06-2019 by Behemoth Brewing


      Hi, My understanding is that the in-house production facility will have a capacity of 250,000L per year - this is less than half of the 530,000L produced last year. Will there be any room to expand the in-house brewing capacity, or will any additional growth rely on contract brewing partners?

      Posted on 05-06-2019 by Kelvin King

      Hi Kelvin,
      At present there is no strategy to expand the brewing volume as part of our current 3 year plan and we will continue to utilise our contract brewing partners for a large proportion of our brewing needs. Expansion at 1a Charles St will be something we will potentially look at post this 3 year plan.
      Best, Andrew

      Answered on 05-06-2019 by Behemoth Brewing


      Silly question and it might have been mentioned in the IM, but would we be able to sell the shares in the future?

      Posted on 06-06-2019 by Jay Gong

      Hi Jay. Thanks for the question. We do mention it in the IM, but obviously a big document. We are going to be working with Syndex that will be opening up trading windows a few times a year to sell your shares. You can also do sell them privately if you know someone who would like to buy them. Looking forward to hopefully having you be part of our adventures.

      Chur,
      Andrew

      Answered on 06-06-2019 by Behemoth Brewing


      HI guys, is the AGM invitation a yearly occurrence for as long as you hold the shares, or a one off? and does the "free shipping for rewards" mean that you'd get free shipping on the reward "first rights to purchase annual & limited release beer" as I would most likely be buying every new release. Thanks in advance.

      Posted on 06-06-2019 by Russell Black

      Hi Russell
      Good Question there. The AGM is a yearly invite for as long as you own shares. The free shipping is for beers that we ship out as part of the main reward (ie a can of Visit our brew pub IPA and shareholder only beers will be free shipping. Unfortunately we can't do free shipping on everything as sometime shipping costs more than the beer (freight is pretty pricey in NZ) but we do have free shipping on 12 cans or bottles or more. Hope that answers your question. We look forward to hopefully having you on board!

      Chur,
      Andrew

      Answered on 06-06-2019 by Behemoth Brewing


      Hi Andrew, really keen to invest and be a part of the journey. Just a couple of questions, and again, apologies if these are covered in the IM already.
      1) Are you able to divulge the directors remunerations?
      2) Can you elaborate on your plans post 3 years - as a crafty craft beer brewer are you vehemently opposed to a buy out a la Panhead/Tuatara, or do you lean towards a float (Moa)? Or more private equity?
      3) The multiples - it would have been good to see the revenue multiples of Panhead and Tuatara in the table (or alternatively, the revenues of Panhead and Tuatara pre-buyout). Can you share this information? Also, other recent crowd funding by Renaissance and Zeffer were at 3.3x multiples - can you outline why Behemoth is above these?
      4) Do you anticipate improved economies of sale by having your own premises to brew, thus improving your gross profit margin above 35%?
      5) I recently spent months in the states, touring round in an RV basically going to brew pubs - what are you going to do at Churly's to create a unique vibe and stand out as somewhere cool to hang out (in an increasingly competitive market)? And also, what community involvement initiatives do you have in mind?

      thanks,
      matt

      Posted on 06-06-2019 by Matt Lloyd

      Hi Matt
      Thanks for the questions mate. I will answer them as best I can below:
      1) We currently do not pay any Directors Fees. The Directors are all also operational management in the business deriving market salaries for their roles as part of their employment agreements. By they I mean me. We have budgeted a small amount for directors fees for directors coming on later in the year.
      2) It is probably quite difficult for us to elaborate post 3 years in terms of strategy as our plans 3 years ago would be vastly different to what they are today, this is how fast the industry evolves. We will focus on delivering our forecasts in the next 3 years and if we achieve those, it will put us in a situation to potentially have one or all of the options above on the table.
      3) The revenue multiples weren't published by the purchasers of Tuatara and Panhead, so we are unable to include them. In terms of the valuation for Behemoth the multiple is also less than a number of successful crowdfunding raises recently, so we think it sits somewhere in the middle what the market is willing to pay to invest in craft breweries.
      4) We do anticipate economies of scale come the 2021 financial year from our own production, our budgeted gross margin is to remain at consistent with past periods.
      5) Great question! We have thought long and hard on this and think that our food focus of nose-to-tail butchery will really offer us a unique offering. We'll not only change the menu daily, based on what part of the carcass we are up to, but will have the butchery process on display along with our 1,000kg meat drying room. Churly's will be focused on making our operations transparent so the customer can always see what is going on; butchery, brewing, & cooking. They can also be part of the processes with butchery classes and specific beer and meat events. As far as our community involvement goes, the sky is the limit! We are excited to support local social sport teams, home-brew clubs, dog groups, local performers, etc.

      Cheers,
      Andrew

      Answered on 06-06-2019 by Behemoth Brewing


      Hi Team Behemoth,
      Firstly - well done on getting the business to where it is and secondly on a compelling investment pitch - no mean feat. I have a couple of questions:
      1. I have friends all around the world who have visited NZ and love craft beer, can they invest?
      2. I appreciate the way valuation works in growing companies - EBIT multiples don't work and some times the multiple of revenue look a bit high - it will be what the market is willing to pay after all and 1/3 of the way there already who am I to question - I think more importantly on the valuation when do you think the business will stop doing a cash burn and start delivering profit in line with growth?
      Thx. Rich

      Posted on 06-06-2019 by Mr Kay-Ne

      Hi Rich,

      Thanks for the kind words. Yes it hasn't all been beer and skittles to get things to where they are today.

      Lots of hard work, support and some really great staff. To answer your question:

      1. Yes your friends may be able to invest. International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a “wholesale investor” within the meaning of the Financial Markets Conduct Act 2013, which is further explained through our wholesale offer: https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale.

      2. A lot of this raise is allocated to capital build for the brewpub, so we will continue to be cashflow negative for at least the next 12 months. After that we are budgeting for positive cashflow on a month by month basis - apart maybe from August because of July when it seems like the entire does not seem quite so thirsty. We are focused on ensuring that the business continues to stand on it own two feet as it has the last year.

      Cheers,
      Andrew

      Answered on 10-06-2019 by Behemoth Brewing


      Hi,

      I didn't see anything in the IM relating to exit (aside from the secondary trading events). What is the ambition of the founders? In regards to the secondary market events, what guidance will be provided by directors regarding company performance and value of shares vis a vie valuation in this round?

      Posted on 06-06-2019 by Rupert Jones

      Hi Rupert
      Please see below

      Answered on 07-06-2019 by Behemoth Brewing


      Also in relation to exit, what would you anticipate a likely exit multiple to be especially given you will effectively have a hospitality business (which typically trade at a low EBITDA multiple) and a craft beer brand? Given that the starting point is a multiple of more than 5x revenue it's not clear to me where the opportunity is for investor capital gain.

      Given craft beer in NZ seems to be heavily saturated (we have more craft brewers in NZ per capital than the USA), what gives you confidence you can grow at the rate and scale as forecast in your financials? My sense is that more than doubling your current beer sales in 3 years will be challenging and cost more than forecast. I think it will become increasingly tough for craft beer brands to get cut through given a punter can go to a Lion owned bar & restaurant and pick up a SuperCharger (nectar of the gods), and the supermarket shelves are littered with craft brews from all over the place.

      Also, will you be updating this offer with any Q&A that is taking place on the wholesale offer?

      Posted on 06-06-2019 by Rupert Jones

      Hi Rupert,

      Thank you for your questions, you seem to have good knowledge of the challenges we face as an independent craft brewer and also the investment process.

      Let me answer your questions one by one:

      Exit?

      In terms of exit we have not specifically outlined this in our strategy, as we think it would erroneous to make promises that we may be unable to deliver to shareholders in the next 3 years. A strategy purely related to buyout would be very different to what we are currently planning for the next 3 years. If we were looking purely a getting bought out we would be chasing market share at the expense of our gross margin and making beers that perhaps aren't the type that Behemoth is known for, even then there is no as of right guarantee that a big multi-national will buy you. Bluntly, that is not our strategy. As I mention in an above answer I believe that if we focus on delivering the 3 year forecast we will put ourselves in a situation where perhaps we will be a brand and a company that has interest in investment from more private equity, a liquidity event or perhaps merger and acquisition.

      Secondary Market?

      I think what you are asking is what will provide in terms of secondary market sales data. As such we will not control the sale of secondary market shares, but we believe that Syndex will publish a sell and buy price like a normal exchange and also last sale. We would encourage people to use Syndex in trading windows, but they can also sell shares privately and this data would not necessarily be captured.

      Saturation?

      We have discussed in our IM the competitive market of craft beer in New Zealand and the challenges this presents. We have also outlined why we believe we are able to continue growing the business in a market that has become more and more saturated. See specifically page 6 onwards. We also think it's great that the beer drinker can access decent macro-owned "craft" beer in tied pubs and bars. Craft beer is about variety and that will drive drinkers to try more and more craft beers, including independently owned ones like ourselves.

      Wholesale Offer?

      A good point and for retail investors they can view the wholesale offering here and any questions raised. We will put similar on the wholesale page. https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale

      Answered on 07-06-2019 by Behemoth Brewing


      Hi there,
      I just wanted to check that there was no requirement to hold a Syndex account outside of trading shares through them. They look to charge a $60 per annum fee on their accounts, which would eat away substantially on a minimum investment amount of $1000 if this had to be paid annually.
      Thanks,
      Andrew

      Posted on 07-06-2019 by Andrew Pope

      Hi Andrew,
      We have asked Syndex and their reply is:

      "It’s best if shareholders do hold an account, then Behemoth will be able to communicate with them easier through the portal and they can trade if they wish.
      Second part to the answer - shareholders won’t be charged $60, they only incur a brokerage cost when they sell their shares or buy more - which will be 0.1% of the trade value or a minimum charge of $125 to ensure all the admin is convered."

      If you have an further questions about this Ross Verry will be able to answer any questions: [email protected]
      Cheers,
      Andrew

      Answered on 07-06-2019 by Behemoth Brewing


      Hi Guys, any thoughts of providing something for home brewing pledgeors? Perhaps an evening with the brewers, on-sale of bulk grain or hops, or access to yeast slurry?

      Posted on 11-06-2019 by James Dare

      Hey James

      Great question. We do plan to do evenings with the brewers, brew days and educational stuff for homebrewers (like fault training etc), we have always been open with our recipes (we publish a recipe in every beer and brewer magazine) and help for the home brew community. Bulk grain, hops and slurry we will have to look into logistically with our inventory systems but it is something I'm keen to do if we are able to. Freaking good question. Happy Brewing!

      Chur,
      Andrew

      Answered on 11-06-2019 by Behemoth Brewing


      Hi Andrew,
      Firstly, congrats on the success of Behemoth so far, great brews and I'm sure many, many more on the ways!! Given the large chunk of capital that is proposed to be allocated towards Churly's fit-out (not directly related to the sites future brewing operations) and the significant forecast revenue from 'Hospo and retail trading Revenue' on Pg25, my questions below are on aspects of the restaurant and retail trading assumptions in your forecasts. In no particular order:
      i) Seating numbers planned in the Churly's restaurant fit-out design?
      ii) Floor size of the designated retail space at Churly's?
      iii) Max numbers of retail visitors forecast to the site at any one time? (perhaps limited by HSE etc)
      iv) What assumptions in the financials have been used to forecast the retail trading revenue each FY out to 2022. I'm particularly interested in assumptions surrounding daily/weekly/monthly eating restaurant customers numbers (which ever has been used), daily/weekly/monthly drinking only customer numbers, average bill spend/visitor, split between 'on' and 'off' license retail beer sales going forward, any seasonal effects considered critical in the forecasting proposed?

      Changing tack - regarding the 'beer trading' revenue - (v) can you supply the forecast revenue split between domestic and int'l sales each year out to FY2022 used. Also what 'beer trading' price inflation (if any) is built into the 'beer trading' revenue forecasts (interested to see that verse beer volume forecast increases).
      vi) Can you add a bit more flavour on what differences (visible or otherwise) can be expected in the case of NZD1.5m raise verse the full NZD3.5m raise (bit of an open ended Q for u!). One that jumps out from my side is the lack of 'export staff mid 2020' in the event NZD1.5m raised and how this scenario impacts the topline revenue forecasts touched on above.

      Congrats again, look forward to hearing more on the above.
      Cheers
      Dave

      Posted on 11-06-2019 by David Witkowski

      Hi David

      Sorry for the delayed response to this, snuck past us. Appreciate you like the beers... yes many, many more on the way :) I will answer in turn. Hope to have you aboard soon.

      Answers below:

      1) Seating numbers planned - 140 seat capacity

      2) Floor size of Churly's is 280m2 (incl 100m2 courtyard)

      3) Max retail visitors 238

      4) We undertook a very indepth budgeting process for Churly's and the average spend and seatings varies depending on the day of the week and the time of the day, as well as time of year. From $30 a head per lunch during the week to $50 per head on a sunday lunchtime. We are budgeting when up and running fully a 75% capacity. 16% of our restaurant turnover will be retail (off premise sales).

      5) Split between domestic & export:
      FY 2020 FY 2021 FY 2022
      Domestic 4,950k 6,354k 7,378k
      Export 660k 750k 1,200k

      We have assumed no increase in beer pricing over this period.

      6) The breakdown of spending is detailed on page 18 of the IM which details what will be spent if we raise $1.5m vs $3.5m

      Answered on 18-06-2019 by Behemoth Brewing


      This pledge me thing is all new to me, being an American, but my question is, AS an American, can I participate? You guys are truly talented and one of my favorite NZ beers. I'd love to be a part of this!

      Posted on 14-06-2019 by Audry Henniger

      Hi Audrey unfortunately it is only open to New Zealand Residents (unless you are a wholesale investor) it is a real shame as we have had some good interest from overseas but unfortunately those are the rules at the moment. So glad you like our beers and if you have any other questions please feel free to email me on [email protected]
      Cheers,
      Andrew

      Answered on 15-06-2019 by Behemoth Brewing


      Hi Andrew,

      Thanks for the opportunity to invest in this legendary operation! Couple of questions from the IM:
      1) What info can we expect to get as shareholders, other than the annual report? Will there be quarterly financials, monthly volumes, or anything like that?
      2) I note that you're forecasting the same $ per liter of beer for both cost and sales value in your FYE2022 forecast as you have reported for the current FY. Couple of questions fall out of this:
      i) How will you respond to price pressure with the increasing number of craft brewers? I'd expect that between this and pressure from foodstuffs to have your products on deeper cuts for sales will drive your sales value per liter down. If the cost to produce stays the same, this will dig into your GP quite hard. Any thoughts around this?
      ii) I'd imagine that $ per litre would be a bit more stable for your sales to pubs etc. What percentage of your local beer sales are in grocery vs in pubs vs in liquor stores?
      iii) I see that you'll only be brewing around 30% from your brew bar location. Will the brewery portion of the rent be covered entirely by the beer cost of sales, or will that be coming out of the beer operating expenses?
      3) I see you have around $1.3m in current and non-current liabilities. The IM mentions a $400k loan from Reg Field, are you able to detail the other $0.9m and what it's been used for?

      Posted on 18-06-2019 by Reuben Posthuma

      Hi Reuben
      Thanks for the questions. Glad you love what we do! I will answer in turn.
      1) What info can we expect to get as shareholders, other than the annual report? Will there be quarterly financials, monthly volumes, or anything like that?

      We will be providing periodic updates to all shareholders (chur-holders), along with financial information before Syndex trading windows open up so people full informed decisions if they are to trade their shares.

      2) I note that you're forecasting the same $ per liter of beer for both cost and sales value in your FYE2022 forecast as you have reported for the current FY. Couple of questions fall out of this:
      i) How will you respond to price pressure with the increasing number of craft brewers? I'd expect that between this and pressure from foodstuffs to have your products on deeper cuts for sales will drive your sales value per liter down. If the cost to produce stays the same, this will dig into your GP quite hard. Any thoughts around this?

      So far it would seem that the independent small and medium craft brewers in New Zealand have, on the most part, resisted the urge to race to the bottom in terms pricing.
      We expect that this will be the status quo, as outlined in a previous question we are not planning to sacrifice profit margin for out and out market share.
      In terms of grocery price pressures; we have a great relationship with Foodstuffs, and they are 100% supportive that craft beer is not a segment where they can be super aggressive with driving supplier pricing downwards.

      Without New World’s support for craft beer over the last 15 years, there would be no craft industry in New Zealand, and Foodstuffs are very aware that the category delivers their stores' good margins while allowing craft breweries to make some return themselves. It would require a shift in a paradigm that has been in place for the last 15 years for us to get caught in a deep cut discounting war.

      ii) I'd imagine that $ per litre would be a bit more stable for your sales to pubs etc. What percentage of your local beer sales are in grocery vs in pubs vs in liquor stores?
      Our experience is that neither on or off premise are unstable in terms of pricing. We have a good mix between these sales channels, with grocery a slightly higher percentage.

      iii) I see that you'll only be brewing around 30% from your brew bar location. Will the brewery portion of the rent be covered entirely by the beer cost of sales, or will that be coming out of the beer operating expenses?
      Rent is below the line in the operating expenses.

      3) I see you have around $1.3m in current and non-current liabilities. The IM mentions a $400k loan from Reg Field, are you able to detail the other $0.9m and what it's been used for?
      This is a mixture of accounts payable, tax liabilities, vehicle loans and leave accrual.

      Answered on 18-06-2019 by Behemoth Brewing


      What's the difference between this pledge and https://www.pledgeme.co.nz/investments/362-behemoth-brewing-wholesale ?

      Posted on 19-06-2019 by HappyEvilSlosh

      Hey HappyEvil Slosh

      Have also answered you on the wholesale page but will cut and paste here so everyone can see the samething:

      There is no difference in rewards or class of shares. It is simply that we can only raise $2m from retail investors and the maximum total we are after is $3.5m.
      Whole sale investors allow us to go over $2m, but they also are included in the total wholesale for our minimum raise amount of $1.5m. Hope that answers your questions. Anything else you can email me [email protected]

      Cheers,
      Andrew

      Answered on 19-06-2019 by Behemoth Brewing


      Morning, I am asking on behalf of a 5 man social group who are very interested in pledging. If we were to pledge as a bronze membership would we all receive the birthday gift pack , the hat, t-shirts , chalice and pin?. Cheers Ash

      Posted on 03-07-2019 by Ash Flitten

      Hi Ash

      Thanks for the question. We can't really do that as we have budgeted it for 1 person for $2500, it would have to be split between you. But flick an email to [email protected] and we can figure out a way to make it work for you.

      Cheers,
      Andrew

      Answered on 03-07-2019 by Behemoth Brewing


      Hi - a couple of quick ones. 1) I don't see a separate capital contingency for the 1.5M budget, if your capex budgets are exceeded in certain areas, what is the plan to manage (eg reduce scope/ quality, take from other planned capex, etc)? 2) I don't know Auckland too well but curious about the plan for parking to accommodate the many full houses you'll get for Churly's. Thanks.

      Posted on 03-07-2019 by Don Bartkowiak

      Hi Don
      Thanks for the questions will answer in turn.
      1) Page 18 we go over our $1.5m and $3.5m budgets. We do have buffers in there for each rate of investment.
      2) We are planning on paying for some car parks from local nearby businesses and there is some street parking in the area.

      Cheers,
      Andrew

      Answered on 03-07-2019 by Behemoth Brewing


      Maybe a silly question but I am fairly new to this. In two days once the time frame to obtain the targeted pledge value is up what happens? Will you set this up again as I see there are a lot of followers. The reason I ask is that I have just reviewed this but need more time to review. Also, if it hits the target in a late flurry does it close off once the two days is up or can you still pledge after this time?

      Posted on 03-07-2019 by Jonathan Percy

      Hi Jonathan
      Not a silly question at all. In 2 days once the time frame closes that will be it. We don't have any plans again to set this up (I cannot even tell you how much work this is). We hope to hit our minimum target tonight or tomorrow (about $26k to go when writing this). You won't be able to pledge after then I don't think. If you have any questions to get you over the line before Friday night, give me an email [email protected]

      Cheers,
      Andrew

      Answered on 03-07-2019 by Behemoth Brewing

      Andrew
      2019-07-04 19:46:51 +1200
      Jessica
      2019-07-04 19:20:03 +1200
      Cameron D
      2019-07-04 19:07:11 +1200
      guillaume clin
      2019-07-04 19:06:37 +1200

      "all the best and I hops to drink a lot of new amazing beers"

      Anthony Strevens
      2019-07-04 18:43:09 +1200
      Bill Rattenbury
      2019-07-04 18:41:33 +1200
      Paul Siratovich
      2019-07-04 18:14:25 +1200
      Dan Emsley
      2019-07-04 18:00:15 +1200

      "Good luck Andrew! Stoked to be an investor!"

      Matt Hope
      2019-07-04 17:53:21 +1200
      Russell Campbell
      2019-07-04 17:36:45 +1200
      SAMUEL FRAME
      2019-07-04 16:33:20 +1200
      Justin Wilson
      2019-07-04 16:21:10 +1200
      Adam Johnston
      2019-07-04 16:07:26 +1200
      Alan Owen
      2019-07-04 15:26:51 +1200
      SAMUEL FRAME
      2019-07-04 15:16:56 +1200
      Hemi James Paurini
      2019-07-04 15:15:42 +1200
      Jade Brandon
      2019-07-04 14:40:45 +1200
      Patrick
      2019-07-04 14:37:39 +1200
      James Miller
      2019-07-04 14:34:26 +1200
      Joanna Wang
      2019-07-04 14:15:37 +1200
      Jared Percival
      2019-07-04 12:59:38 +1200

      "DAHEMOTH is ONFORMOTH!"

      Paul Trevor
      2019-07-04 12:18:47 +1200
      Wayne Strong
      2019-07-04 11:49:51 +1200

      "Excited to be involved in this project. I've always wanted to own a brewery and this is easier than convincing my wife to let me buy one."

      Alison Knight
      2019-07-04 11:40:06 +1200
      James Conroy
      2019-07-04 11:19:00 +1200

      "GL team. Not that you'll need it"

      Liz Pellow
      2019-07-04 10:47:33 +1200
      Owen Lyttelton
      2019-07-04 09:39:08 +1200
      David Lucas
      2019-07-04 09:03:01 +1200
      Ally Holden
      2019-07-04 08:51:30 +1200

      "Cheers!"

      TRACEY FISHER
      2019-07-04 08:33:30 +1200
      This campaign was successful and got its funding on 15/07/2019 at 9:00 PM.

      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 Behemoth Brewing, you can sign up to be notified when a new equity campaign from this company is published.

      Notify Me

      Investor Perks

      Opal Membership

      NZ $1,000.00+

      Ownership in Behemoth Brewing (Class A shares) * OPAL Chur-holder Pin that gives you a 5% personal discount at Churly’s in Auckland and Behemoth online for as long as you retain your shares * Exclusive Behemoth Owner’s Chalice * Limited Edition Investor’s T-shirt and Hat * A can of Behemoth’s “Visit our Brew Pub IPA” - when released * An invite to join the Chur-holder Club which offers exclusive access to the following: Membership of the Chur-holder Club. Special newsletters and invite to exclusive Facebook Group. An invitation to the AGM at the brewery with food and beverages provided after the meeting. Advance notice of new (and limited) releases. First rights to purchase annual & limited release beer * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Bronze Membership

      NZ $2,500.00+

      Ownership in Behemoth Brewing (Class A shares) * BRONZE Chur-holder Pin that gives you a 10% personal discount at Churly’s in Auckland and Behemoth Online * Everything from Opal Membership (with the variation of pin and discount) * Free “Pint and Platter” meal on your birthday (or, if not in Auckland, a voucher for the equivalent, $45, to use at Behemoth online) * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Silver Membership

      NZ $5,000.00+

      Ownership in Behemoth Brewing (Class A shares) * SILVER Chur-holder Pin * Everything from Bronze Membership (with the variation of pin) * 6 pack of Crowlers (946ml cans of keg fresh beer) every 12 months for 3 years. Note: These beers will be taken from a selection of limited release beers * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Emerald Membership

      NZ $12,500.00+

      Ownership in Behemoth Brewing (Class A shares) * EMERALD Chur-holder Pin * Everything from Silver Membership (with the variation of pin) * 6 pack of Crowlers (946ml cans of keg fresh beer) every 6 months for 3 years. (Double the allotment of Silver Membership) Note: These beers will be taken from a selection of limited release beers * An invite to the once a year Churholders Behemoth Brew Day w/ Complimentary lunch, 6-pack of the resulting beer & brew day t-shirt * An invite to join the Chur-holder Premium Club with exclusive access to the following: All Chur-holder Club Member entitlements. A vote to decide the annual exclusive “members-release” beer style and name. Exclusive members’ privileges at Churly’s. First rights to book The Monster’s Table (Private Dining Room) at Churly’s for special occasions and during the festive season * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Gold Membership

      NZ $25,000.00+

      Ownership in Behemoth Brewing (Class A shares) * GOLD Chur-holder Pin * Everything from Emerald Membership (with the variation of pin) * Two invitations to the yearly “Chur-holder Banquet”, featuring a Complete Nose to Tail Menu, matching beers, with hosts, Andrew Childs & Hannah Miller Childs (value $400) * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Sapphire Membership

      NZ $50,000.00+

      Ownership in Behemoth Brewing (Class B shares - Voting Rights) * SAPPHIRE Chur-holder Pin * Everything from Gold Membership (with the variation of pin) * A private party (complete with food and beer matching) personally hosted by Andrew & Hannah Childs in the brewery for you and your guests. To be redeemed at Churly’s in the first year of opening (value of $1500) * All rewards that require shipping will be delivered free of charge to any address in New Zealand. We unfortunately cannot ship the rewards overseas.

      Warning statement about equity crowdfunding

      Equity crowdfunding is risky.

      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

      New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

      The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

      Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.