Investor Webinar
Snowball Effect recently hosted an investor webinar with Parrotdog.
The format of the webinar consisted of a short presentation on the business followed by a live Q&A session. You can rewatch the webinar below.
If you have any further questions, feel free to submit them via the offer page or send them to Sophie Mclernon.
Investor Notice
This offer is being undertaken in conjunction with a preferential offer to existing shareholders and is conditional upon the company raising at least $2m in aggregate from existing shareholders and new investors. By applying for an investment in the Offer, you are committing to subscribing for the amount in your application. The company will endeavour to allocate to you your full application amount, however this may need to be scaled back if the Offer is oversubscribed or the retail investment limit is exceeded, or as a result of allocations under the preferential offer.
A maximum of $2m can be raised from retail investors in reliance on Snowball Effect’s equity crowdfunding licence, with the balance available only to wholesale investors. If you are a wholesale investor, please ensure you select the 'wholesale' option when investing to allow a greater opportunity for those who are not wholesale investors to be able to participate, and for the company to maximise the capital raised in this round.
The company will confirm your final allocation and investment amount at the end of the Offer. Payment for your investment will only need to be settled once your investment allocation has been confirmed by the company.
Executive Summary
Parrotdog is a leading craft beer company with a flagship brewery and bar in Lyall Bay, Wellington.
We were founded in 2011 by a group of mates (all called Matt) with an idea to brew nice beer. We quickly became a serious business and are now one of New Zealand’s largest independent craft breweries, producing up to 3 million litres per annum.
We have a focus on producing high-quality, unique beers using carefully selected ingredients and have established a loyal following. Our products have wide consumer appeal with our Birdseye Hazy IPA 6-pack the #1 selling (by value) craft beer SKU (Stock Keeping Unit) within the New Zealand grocery market and another three SKUs in the top 50 selling craft beers.
Although demand has often outstripped supply, we have achieved consistent revenue growth since FY16 at a compound average growth rate (CAGR) of 45%, generating $17.3m of gross revenue in FY22. We are on track to achieve $20.1m for FY23 and forecast to continue growing at a CAGR of 18% to achieve revenue of $33.5m in FY26.
Capital raises fuelling rapid expansion and growth
We have successfully raised capital twice, which allowed us to build an entire new brewery, commission a new canning line, bring our sales team in-house and build our Wellington bar in Lyall Bay. We are proud to have delivered on the plans outlined each time. In our last capital raise in 2017 we forecasted the opportunity to grow annual revenue to $10m, and are now on target to achieve double that for FY23.
We are one of the only craft breweries in New Zealand with significant scale, a vertically integrated operating model and our own in-house sales team. We have implemented SAP Business One as our Enterprise Resource Planning (ERP) system, providing the necessary foundation for future growth and scale.
The next stage of growth
We now want to commit to the next stage of growth. Having previously prioritised revenue growth and consistently exceeding forecasts, we have built a large and diverse customer base with product ranging in thousands of outlets across New Zealand. We have a strong brand presence and the highest independently owned share of the craft beer market. We are now shifting our focus to achieving more sustainable long-term success, with profitability a key performance indicator in the future as we continue to aim to grow revenue and expand the business.
To achieve this we intend to expand the capacity of our brewery and increase inventory levels to satisfy the growing demand. We want to become more self-sufficient and produce increased volumes with greater efficiencies. We plan to do this by investing in new cellar process equipment, packaging automation and CO2 recapture and nitrogen generation, which we consider will resolve immediate CO2 shortages and create a more sustainable business with improved gross margins.
With increased capacity we plan to leverage Birdseye’s success to increase sales and distribution across our core range and aim to introduce new products to achieve our targeted revenue growth. To do this we will increase our sales resources, expand ranging with retailers and invest in our on-premise and hospitality partnerships. We intend to continue to invest into the Auckland market which we believe offers the greatest domestic growth opportunity.
We want to ‘localise’ our brand to major city centres and shift the perception that Parrotdog is a Wellington-based brand, to a brand for all New Zealanders, creating local brand associations through strategic partnerships, targeted marketing, brand activations and increased trade promotional activity.
Continuing to innovate
We intend to continue to innovate with new product releases and analyse trends and data before launching them as we want to be confident they will resonate with our customers and have the growth potential as a result. We are looking to grow our 12-pack and lifestyle category offerings with the launch of a Low Carb Hazy (Greyhound) and a Zero Alc Ale (Watchdog) in the first half of 2023. We are developing a new limited-release series to target craft beer drinkers which we plan to be more frequently released and explorative in style. We are confident it will also increase our margins and provide further opportunities to engage our customer base with exciting beer styles. This New Product Development (NPD) programme will be driven by our e-commerce website to grow this segment during FY24 with pre-purchase and subscription opportunities to build excitement, customer loyalty and repeat purchases.
Join us on this new phase of growth
We are now raising up to $4m of capital to support our growth strategy and invite you to join us in this next stage of our exciting growth story as we continue to deliver high-quality results for all stakeholders.
Investment Highlights
- Parrotdog is one of New Zealand’s largest independent craft breweries, on target to achieve $20.1m of gross revenue in FY23
- A clear strategy focused on profitable growth, with gross revenue and EBITDA forecast to grow to $33.5m and $3.4m respectively in FY26
- A strong brand with wide consumer appeal
- Strong distribution across NZ grocery, off-premise, on-premise and ecommerce, providing a diversified revenue stream across channels (grocery ~52%), product (Birdseye ~49%), and format (6 pack cans ~66%)
- The number 1 craft beer market position (by value) for 6 pack Birdseye Hazy IPA 6x330ml SKU within New Zealand grocery
- A comprehensive and efficient vertically integrated operating model, with existing production capacity of 3 million litres p.a. and plans to expand to 5 million litres p.a
- Systems, processes and platform in place to achieve profitable growth
- A pre-money valuation of $25.4m, equal to 1.27x FY23 gross revenues
Parrotdog Growth Statistics
With an enviable market share, the #1 NZ craft beer SKU in grocery, and solid historical growth, Parrotdog is well positioned for future growth.
Team Overview
Parrotdog has assembled a strong management team. The team has significant industry experience across all business functions which has enabled it to achieve high growth and build a strong platform to execute on future growth opportunities.
Paul Watson Managing Director
Paul joined Parrotdog in 2013 as the first employee and has worked in and added value to most areas of the business. Prior to being appointed as Managing Director in 2021, Paul was Head of Sales from 2017 and responsible for mobilising Parrotdog’s internal sales force. Paul implements and executes the strategy set by the Board, leads the management team and oversees day-to-day operations.
Matt Kristofski Brand Director & Co-Founder
Matt has been with Parrotdog since its inception, being instrumental in the creation and development of the brand and marketing. Matt now leads brand direction, manages brand partnerships and plays a key role in our NPD programme. Matt has a Bachelor of Commerce (Marketing & Commercial Law).
Matt Warner Brewing Director & Co-Founder
Matt has been with Parrotdog since inception and has predominantly been in brewing focused roles, being the Head Brewer until 2021. Matt oversees beer production, quality control and raw material procurement and is fundamental to the company’s NPD programme, recipe development and refinement. Matt has a Bachelor of Laws and Bachelor of Science (Psychology and Philosophy).
Matt Stevens Commercial Director & Co-Founder
Matt has been with Parrotdog since inception and has had solely financial and commercial focused roles. Matt oversees all commercial matters including strategic finance, audit and risk, insurance, legals, property and leasing, shareholder management, systems and processes. Matt has a Bachelor of Commerce (Accounting and Commercial Law), a post Graduate Diploma in Accounting and is a Chartered Accountant with five years experience at Openside & Deloitte.
Lucy Aitchison Marketing Manager
Lucy joined Parrotdog in 2018 and has been our Marketing Manager since 2021. Lucy leads the marketing team, manages digital marketing and promotional activity and plays a key role in developing product design and NPD. Prior to joining the business, Lucy completed a Diploma in Photography and a Diploma in Graphic Design.
Lucy Armstrong Bar & Retail Manager
Lucy joined Parrotdog in 2019, stepping into the role of Nice. Takeaway Manager from 2020 and is currently the acting Bar Manager while we recruit for this role. Lucy’s key focus is on the management of our Nice. Takeaway store involving development and direction of the cellar door, online sales, merchandising and management of Brewery Tours. Prior to joining Parrotdog, Lucy received a Bachelor in Design with Honours, majoring in Photography, at Massey University.
Sarah Glasgow People & Culture Manager
Sarah joined Parrotdog as the People & Culture Manager in 2022. Sarah leads our HR functions and is responsible for overseeing recruitment, staff training and resource planning. Sarah provides HR support and direction to key managers, while also managing the company’s Health & Safety programme. Prior to joining the business, Sarah was a HR Business Partner at VTNZ for five years. Sarah has a Bachelor of Business Studies, a Postgraduate Diploma in Business Occupation Safety and Health, and an MBA from Victoria University.
Alicia Mendez Head Chef
Alicia joined Parrotdog in 2019, progressing to Head Chef by 2020. Alicia leads the kitchen operation including curation of the Parrotdog Bar menu, managing supplier relationships and leading the back of house team. As a senior member of the hospitality team Alicia plays a key role in the direction and drive of Parrotdog Hospitality. Prior to joining Parrotdog, Alicia gained a bachelor degree in Business Management Economics.
Ben Osborne Brewing Manager
Ben joined Parrotdog in 2019 as a Brewer, before becoming Brewing Manager in 2021. Ben leads the brew team and is responsible for the day-to-day scheduling, execution and quality standards of all wort making, fermentation and separation / filtration of beer. Prior to joining Parrotdog, Ben was previously Head Brewer at Zeelandt Brewery. Ben has a Diploma in Brewing from the Institute of Brewing and Distilling Diploma (IBD) and is currently completing the IBD Master Brewer qualification.
Ben Thomas Operations Manager
Ben joined Parrotdog in 2019 and has been our Operations Manager since 2021. Ben oversees all production functions including brewing, packaging and dispatch. He leads respective managers across each production team and reports on critical production output metrics for the business. Prior to joining the business, Ben worked for Garage Project as Packaging Manager, and has a General Certificate in Packaging Beer from the Institute of Brewing and Distilling.
Erin Webber Financial Controller
Erin joined Parrotdog in 2018 and has been our Financial Controller since 2021. Erin leads the finance and administration functions of the business, monitoring and reporting on key business performance metrics. Erin also manages all statutory and regulatory financial compliance. Erin previously worked for Xero as a Senior Customer Support Specialist. Erin has a Diploma in Business.Warning statement
It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.