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By The Horns Brewing Co

Food & Drink
UK - London
Date Rated:
Valuation (Pre Money):
Industry: Food & Drink
Location: UK - London
Platform: Crowdcube
£350,000 Expansion
Valuation: £2,916,667
Date Rated: 08/09/17



Tax Status: EIS

Business Summary

By The Horns Brewing Co is a microbrewery and taproom bar operator in South West London with a range of six beers. By The Horns Brewing Co has grown its brewing capacity eight-fold since inception and is now operating at full capacity brewing over 5k litres per week. This round of investment will be used to expand brewing capacity, further product development, marketing and to fill key roles.

Financial Overview

Date (y/e) Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Sales Sep-16£509,664 Sep-17£549,300 Sep-18£1,220,900 Sep-19£1,670,500 Sep-20£2,170,500
Gross Profit Sep-16£287,767 Sep-17£304,274 Sep-18£731,750 Sep-19£999,400 Sep-20£1,250,000
GP as % sales Sep-1656% Sep-1755% Sep-1860% Sep-1960% Sep-2058%
Overheads Sep-16£292,571 Sep-17£295,090 Sep-18£563,700 Sep-19£677,600 Sep-20£824,800
Operating Profit Sep-16-£4,804 Sep-17£9,184 Sep-18£168,050 Sep-19£321,800 Sep-20£425,200
OP as % sales Sep-16-1% Sep-172% Sep-1814% Sep-1919% Sep-2020%
Closing Cash Sep-16£8,548 Sep-17£424,535 Sep-18£92,239 Sep-19£252,769 £591,061

Note: This financial information has been sourced from the company on 08/09/2017. Financial data is NOT verified by Wheatfromchaff Ltd.
The Founders have acquired their relevant skills on the job at this company but they have proven their competence and they now intend to strengthen the management team further.
This is the Founders' first venture. They have accumulated significant experience getting to this stage but the planned expansion will now present a major new challenge.
Both Founders are full-time and they have invested over six years building the business that is now operating at full capacity.
The industry is steadily growing and the new canned product trend represents a good opportunity for the company. They have already shown they can access international markets.
The product is functioning well with positive testimonials, a large existing customer base and significant distribution deals in place with likes of M&S and Matthew Clarke.
The company intends to take an advantage of the trend to canned craft beer but the industry has many players in the craft segement who could easily follow the same strategy.
The sales projections are realistic and the company is close to break-even. If they can fully utilise the intended further capacity, economies of scale should improve margins.
Financial projections are based on a £450k raise. The company will have no headroom unless an extra £100k in over funding is achieved.
Given the current valuation, investors in this round should not expect more than modest returns if an exit is achieved within four years.


The team has demonstrated that they can grow their company to £500k in revenue and the new Sales Manager should also help to drive the intended growth given a new product offering and several interested parties in both domestic and international markets. Therefore, the extra capacity should allow sales to accelerate.

Many other craft brewers are however doing the same so there is quite an arms race developing which may yet put pressure on distribution and pricing. It might therefore be more prudent to add the brewing capacity first and wait until demand is proven before investing in bringing bottling and canning in-house as well.

In any case the management team will need to maintain the growth for several years and improve the profit margins if they want to provide a reasonable return to their investors as the entry valuation is relatively high.

Related Links

Crowdcube Pitch


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