Behemoth Brewing Company Investment offer preview

Behemoth creates high-quality craft beers, driven by unique flavour creations, and distributed across New Zealand, Australia, and Asia. Behemoth has grown into a nationally recognised brand and a leader in the industry, generating half-year revenues of $4.06m, up more than 100% on the same period last year.

Behemoth Brewing Company

Founded in 2013 by Andrew Childs, Behemoth has grown to become a leading and nationally recognised independent craft beer brand.

Behemoth creates high-quality craft beers, driven by unique flavour creations, and distributed across New Zealand, Australia, and Asia. This combined with its unique, tongue-in-cheek approach to marketing and focused distribution strategy, has built Behemoth into a nationally recognised brand and a leader in the industry.

Behemoth has generated total revenues of $4.9m (EBITDA of $516k) in the 7 month period ending 31 October 2020, with revenues up more than 100% on the same period last year, notwithstanding the impact of COVID-19.

The key to our success has been:

  • Strong brand: We have built a strong national brand that is recognised for its high quality and innovative award winning beers. We apply an authentic marketing approach, with Churly as our mascot and an enthusiastic and creative founder regularly attending events throughout the country.
  • Understanding consumer trends: We recognise that consumer tastes are constantly changing and becoming more experimental. We align all our product development with changing consumer tastes and trends to ensure we resonate and capture the imagination of our target consumers.
  • Strong and Diversified Sales Channels: We have developed a business with multiple sales channels across retail, online and now through our brewpub. Our retail distribution is supported by strong relationships with distribution partners in key markets, both domestically and internationally, ensuring we secure prominent tap and shelf space. Examples of this include our exclusive, nationwide distribution agreement with Foodstuffs. Both our retail and online sales channels have served the business well during the COVID-19 pandemic, with online sales growing from 3% to 10% during the lockdowns.
  • Economies of scale: Our beer has been brewed in 10 different contract breweries since inception. While this model enabled us to grow our product and sales base at reduced cost, the business has now matured and scaled to a position where it can benefit from the economies of scale from in-house production. With the expansion of our new facilities into space previously occupied by a neighboring business, the enlarged production facilities are able to handle upwards of 80% of our production requirements, with plans to increase capacity to 95% with further investment in additional brewing equipment from this capital raise. We still intend to use contract breweries for our largest batch orders from grocery partners, such as Foodstuffs, where it is ineffective to tie up a large portion of our production.
  • Experienced team: We have built a highly skilled and internationally experienced team that ensures we can execute on our growth strategy, both domestically and internationally.

Capital Raise

In early 2019, we raised $2m from new investors to establish our first 'home' for the Behemoth brand, "Churly's". The completion of our new facilities marked a significant milestone in Behemoth’s journey, distinguishing ourselves from the many smaller players in the NZ craft beer industry, and establishing ourselves as one of the leading craft beer brands in NZ.

Behemoth is focused on growth and has a clear 3-year strategic plan to drive revenue growth by leveraging its new production facilities and increasing its domestic footprint through its hospitality business.  Through the execution of this strategic plan, Behemoth is forecasting to grow revenues to $17.7m in FY23 at an EBITDA of $3.9m.

We are now raising up to $1.8m to fund this growth strategy.

Following an upcoming pre-emptive offer to existing shareholders, new investors will have the opportunity to invest into Behemoth. We are now accepting expressions of interest in the offer, which can be entered below.

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About Snowball Effect

Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$75 million has been raised on the platform.