Equity for Punks in 2017

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Brewdog’s Equity for Punks scheme allows craft beer drinkers an opportunity to be a part of the UK’s fastest growing food & drinks company and own a share or two in the process.
By joining the 50,000-strong community of beer lovers, you also bag yourself a bunch of beery related perks.

Whilst it’s not investing in the traditional sense, what you get in the return for the minimum level of investment (In our case 2 shares for £95) is pretty cool.

For a mere £95, back in 2015, we were able to buy two shares which enabled us to receive all these perks and more:-

  • 5% Discount at all Brewdog Bars in the UK
  • 10% Discount in the Brewdog online shop
  • £10 Beer Bucks voucher for Brewdog bars
  • A free beer every year for my birthday
  • Access to exclusive Brewdog #bottlebox subscriptions and online shop items
  • A ticket to the Brewdog AGM every year
  • Lots of other little perks and freebies throughout the year.

We have already seen enough free beer, promotions and perks to get the £95 back in full.

Fast forward to 8th April 2017. Along with all the usual release news and special offers as part of the Equity for Punks AGM, It was announced that TSG Consumer Partners based in San Francisco would be buying a hefty 22% worth of shares. Netting Brewdog around £100 million for continued expansion and to create early shareholder liquidation.
TSG Consumer Partners also own shares on brands such as Vitamin Water, Popchips and Pabst.

Whilst it’s great that Brewdog are now in a position to move their 5 year plan for world domination forward, it has come at a bit of a cost to their reputation according to a number of current Equity for Punk investors.
Many claiming that they have forgotten what it means to be “Punk” and that they have sold out, like many craft breweries before them.

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As a direct result of these shares being bought up by TSG Consumer Partners, my shares have increased to from 2 to 20 and each share is worth the equivalent of £13.18. This means that my total holding is currently at around £263.60.

Two options were imposed by Brewdog with the release of this news at the AGM.

  1. We can sell 15% of our shares at the deal valuation, equal to £13.18 per share, capped at a maximum of 40 shares per Equity Punk
  2. We can retain 100% of your shareholding, and redeem your 6 pack of our brand new Vermont IPA at any UK BrewDog bar.

If we were to sell 15% of our holding, we could sell 3 whole shares at a total value of £39.54 which felt a daft amount to release, considering all of the above perks and the opportunity for additional perks down the line.

As a result, we stuck with option 2 to retain the full holding and claim a 6 pack of the Vermont IPA.

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Through our purchase of shares, we have already seen some amazing returns including a free Brewdog beer on my birthday every year, three 650ml bottles of Born to Die, £10 in Beer Bucks to spend at Brewdog and 5% off all beers at Brewdog.
Just this afternoon I have received confirmation that I’ll be receiving the six 330ml cans of Vermont IPA in June, for holding onto all of my shares too.

Even if anything happened to the shares invested that resulted in a loss, I would still be happy that I get plenty from Brewdog as an Equity for Punks investor, though it would be a shame to miss out on some of that cheeky £263.60 sat there for the taking.

I only wish I had invested in previous Equity for Punks schemes to get my hands on something substantially larger.
Either way, I’m perfectly happy providing the perks keep on coming and the beer keeps on pouring.

Time will tell.

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