This week, Newcastle-based Tyne Bank Brewery took to equity crowdfunding platform Crowdcube to raise £150,000 as it seeks to continue growth and build a second brewery.
Since its launch in 2011, the Tyne Bank Brewery has continued to growth thanks to its craft beer’s popularity. The company’s “Core Brews” includes Single Blonde (3.5% blonde ale), Monment (4.1% copper colored bitter), Dark Brown Ale (4.2% Newcastle brewed, rich/malty ale), Pacifica (4% pale ale), and Silver Dollar (4.9% American pale ale).
Tyne Bank Brewery has also won several awards such as, seasonal Summer Breeze which recently won gold in class and silver overall in the 2016 National SIBA keg awards and Silver Dollar, won gold in class in 2014. Monument was awarded the top 3 Gold Stars in the Good Food Guide’s Great Taste Awards and furthermore it was rated in the Top 50 of 10,000 food & drink submissions across all categories last year.
The company revealed:
“At Tyne Bank we are independent and proud of it, having been self-financed and still solely owned. Our aim is to build the profitability of the business and share the benefits with our shareholders through both a progressive dividend policy and by shareholders being truly engaged with us and enjoying the ride, dividends are not guaranteed and are subject to the profitability of the company. An early exit is not part of our plan, but ultimately if it does happen we feel that we will have created a business of real value from which the shareholders will benefit.”
Sharing details about the new location, the Tyne Bank team explained:
“Instead of just moving to another slightly bigger unit we want to be ambitious and significantly scale up production. We have identified a new building, which we feel is perfect for a visitor attraction brewery with the addition of a craft beer tap room and event space. It also has space to house a kegging, bottling and canning line.”
The brewery’s crew also noted that the business plan assumes continued growth that’s generated by onsite sales. They are foresting turnover to increase from £342,000 to £1.3 million in 2020 with a NP of 18%:
“The packaging line would increase that turnover even further to £1.7M with a NP of 19%.”
Funds from the campaign will be used for the cost to refit the new building, relocate equipment, upgrade and expand the existing brewery. The campaign is set to close at the beginning of May.
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