INVESTMENT HIGHLIGHTS

• Leading independent NZ craft brewery, with a nationally recognised brand and producing more than 740,000 litres of beer in the last 12 months.
• State-of-the-art brewing facilities, capable of brewing 4,200 litres a day and providing economies of scale for profitable growth.
• Diverse distribution and sale channels, with beer sold in more than 650 retail, off- licence and hospitality outlets throughout NZ, as well as exported to 9 countries.
• Strong projected revenue growth from $8.7m in FY21 to $17.7m in FY23, a compound annual growth rate of 43%.
• A profitable business, forecast to grow EBITDA from $1.1m in FY21 to $3.9m in FY23.
• A strong management team, with significant industry expertise and experience.

EXECUTIVE SUMMARY

Behemoth Brewing Company Limited (Behemoth) was founded in 2013 by Andrew Childs and has grown to become a leading craft brewery with a nationally recognised brand.

We produced more than 740,000 litres of beer in the 12 months ended 31 October 2020, with our beer sold in more than 650 retail, off-licence and hospitality outlets throughout NZ, as well as sold in 9 countries. Over the last 7 years we have created more than 250 beers, many of which have been small batch, one-off brews. We love experimenting with ingredients and creating beer big on flavour and fun, as illustrated through our branding and mascot’s, Churly, varied attire.

We have generated $4.9m of revenue in the 7 months ended 31 October 2020 and, with the busy summer months ahead, are well on track to deliver total revenues of $8.7m and an EBITDA of $1.1m for the FY21.

The key to our success has been developing a strong national brand, aligning product development with an understanding of consumer trends, building strong and diversified sales channels, creating economies of scale and building a highly skilled team.

Since closing our last capital raise, we have completed construction of Churly’s, our brewpub bar and eatery. Churly’s offers 24 rotating taps, hosting the full range of Behemoth’s beer blends, coupled with a full ‘nose-to-tail’ dining experience led by our in-house butcher Hannah Childs.

Churly’s overlooks our state-of-the-art brewery that is capable of producing up to 80% of our beer production requirements, with current plans to increase capacity to 95%. We are now in the process of moving production in-house which will reduce reliance on contract manufacturing.

We recently signed an agreement with Saigon craft brewery, Heart of Darkness, to manufacture and distribute their beers in NZ. We also continue to develop strategic partnerships with other key international brewers in order to develop new production and distribution agreements for the NZ market, we are confident of adding more overseas agreements shortly.

Craft beer continues to be one of the fastest growing alcoholic drinks categories in NZ, and much like the trend from mainstream to craft beer over the last ten years, consumers are now also seeking a more premium, handcrafted beer. With nationwide distribution and strong brand positioning, we are set to continue as a leader in the craft beer category.

Although the pandemic interrupted the launch of Churly’s, we remain confident that our expansion into hospitality will benefit the business as a whole. We expect the pandemic will continue to create headwinds for the industry and we have put in place strategies to mitigate its future impact on our business. Our pivot into e-commerce during the lockdown has created a valuable sales channel, with monthly online sales peaking at $200k in April 2020 and monthly online sales now averaging more than 3 times the online sales derived before the lockdown.

We have refined our rolling 3-year strategic plan and defined our growth vision, which is centered around expanding our hospitality business, leveraging our production capability, developing new export markets and sales channels. We believe with our focussed strategy we can sustainably grow our revenue to $17.7m and EBITDA to $3.9m in FY23.

We are now raising between $1m and $1.8m of new growth capital, including loan conversions of $444k, at a pre-money equity valuation of $34m.

We love creating high quality craft beer and are well positioned to capitalise on the strength of our market position. We invite you to join us on the next stage of our journey.