Introduction:

Name:

Beavertown Brewery

Type:

Craft beer brewery

Sector:

Alcoholic beverages

Business Overview:

Proposition:

• Beavertown Brewery is a London-based craft beer brewery that produces and sells a range of innovative and flavourful beers, both online and in selected pubs and venues. The brewery was founded in 2011 and has grown to become one of the largest independent craft brewers in the UK, with a capacity of 500,000 hectolitres per year. The brewery’s target audience is mainly young, urban and adventurous beer drinkers who appreciate quality and creativity. The brewery also offers a subscription service, glassware, clothing and merchandise on its website.

Business health:

• Headline financial activity over time: According to the latest available financial reports from Companies House1, Beavertown Brewery had a revenue of £19.1 million in 2020, a decrease of 32% from £28.1 million in 2019. The brewery also reported a loss of £2.4 million in 2020, compared to a profit of £1.3 million in 2019. The decline in revenue and profitability was mainly due to the impact of the COVID-19 pandemic on the on-trade sector, which accounted for about 70% of the brewery’s sales2. However, the brewery managed to increase its off-trade sales by 40% in 2020, thanks to its online shop and distribution partnerships2. The brewery also secured a minority investment from Heineken in 2018, which enabled it to build a new and larger brewery site in Enfield, called Beaverworld, which was launched in 20203.
• Company structure: Beavertown Brewery is a private limited company owned by TP & Munch Ltd, which is in turn owned by Heineken UK Limited (49.5%), Logan Plant (25.8%) and Bridget Plant (24.8%). Logan Plant is the founder and former director of Beavertown Brewery, who resigned his directorship of TP & Munch Ltd in August 2022, leaving Heineken UK Limited with full control of the company4. The current directors of Beavertown Brewery are Johannes Van Esch, Lawson Mountstevens and Denise Martin5.
• Highlights from last annual report: According to the last annual report filed by Beavertown Brewery for the year ended 31 March 2020, some of the highlights were:
  • The brewery produced 93,000 hectolitres of beer in 2020, an increase of 13% from 2019.
  • The brewery employed 129 staff in 2020, an increase of 35% from 2019.
  • The brewery invested £17.4 million in fixed assets, mainly related to the construction of Beaverworld.
  • The brewery received £40 million from Heineken as part of the minority investment deal.
  • The brewery donated £50,000 to various charities and causes, including NHS Charities Together and Hospitality Action.
• Product & services roadmap: According to the official website of Beavertown Brewery7, some of the current and upcoming products and services are:
  • Core range: This includes the flagship beers such as Neck Oil (session IPA), Gamma Ray (American pale ale), Lupuloid (IPA), Nanobot (super session IPA) and Bloody ‘Ell (blood orange IPA).
  • Alpha range: This includes the limited edition beers that showcase different styles and ingredients, such as Double Chin (double neck oil), Heavy Water (salted caramel stout), Tempus Project (barrel aged beers) and Phantom (fruited sour beers).
  • Seasonal range: This includes the seasonal beers that are released throughout the year, such as Lazer Crush (alcohol-free IPA), Yuzilla Phantom (yuzu sour), Spresso (coffee stout) and Bones (pumpkin ale).
  • Subscription service: This is a monthly service that delivers a selection of beers from the core, alpha and seasonal ranges, along with exclusive merchandise and access to online events.
  • Glassware: This includes branded glasses that are designed to enhance the drinking experience of different types of beers.
  • Clothing: This includes branded clothing items such as t-shirts, hoodies, hats and socks that feature the distinctive artwork and logo of the brewery.
  • Merchandise: This includes branded merchandise items such as posters, stickers, pins, coasters and keyrings that showcase the creative identity of the brewery.

Target Audience Topline:

• Demographic: Based on a survey conducted by Statista, the distribution of craft beer spend in the UK in 2018 and 2019 by age group was as follows:

Age group	Craft beer spend (%)
Under 28	1.7
28-34	11.9
35-44	23.6
45-54	29.0
55-64	20.5
65+	13.3

• Geographic: Based on a report by Mintel, the regional distribution of craft beer drinkers in the UK in 2019 was as follows:

Region	Craft beer drinkers (%)
London	38
South East	33
South West	32
North West	31
Scotland	30
Yorkshire and the Humber	29
East Midlands	28
West Midlands	27
North East	26
East of England	25
Wales	24

• Sectors: Based on the same report by Mintel9, the most popular sectors for craft beer consumption in the UK in 2019 were pubs/bars (66%), supermarkets (62%) and restaurants (40%).

Competitive review:

Name	Sector	Proposition	Financials	Services
Beavertown Brewery	Craft beer brewery	Innovative and flavourful beers with distinctive branding	Revenue: £19.1m (2020), Employees: 129 (2020)	Online shop, subscription service, glassware, clothing, merchandise
Camden Town Brewery	Craft beer brewery	Fresh and modern beers with a focus on quality and sustainability	Revenue: £28.1m (2019), Employees: 95 (2019)	Online shop, subscription service, glassware, clothing, merchandise
The Kernel Brewery	Craft beer brewery	Simple and elegant beers with a respect for tradition and ingredients	Revenue: £4.6m (2019), Employees: 25 (2019)	Online shop, glassware, merchandise
Fourpure Brewing Co.	Craft beer brewery	Inspired and adventurous beers with a passion for travel and exploration	Revenue: £10.9m (2019), Employees: 70 (2019)	Online shop, subscription service, glassware, clothing, merchandise
Brew By Numbers	Craft beer brewery	Experimental and diverse beers with a commitment to creativity and quality	Revenue: £2.7m (2019), Employees: 32 (2019)	Online shop, subscription service, glassware, clothing, merchandise
Pressure Drop Brewing	Craft beer brewery	Balanced and expressive beers with a love for hops and flavour	Revenue: £1.8m (2019), Employees: 18 (2019)	Online shop, glassware, merchandise
Anspach & Hobday	Craft beer brewery	Classic and contemporary beers with a respect for history and innovation	Revenue: £1.2m (2019), Employees: 15 (2019)	Online shop, subscription service, glassware, clothing, merchandise
Gipsy Hill Brewing Company	Craft beer brewery	Sessionable and sociable beers with a focus on community and accessibility	Revenue: £2.3m (2019), Employees: 28 (2019)	Online shop, subscription service, glassware, clothing, merchandise
Mondo Brewing Company	Craft beer brewery	Global and eclectic beers with a fusion of styles and cultures	Revenue: £1.1m (2019), Employees: 14 (2019)	Online shop, glassware, clothing, merchandise
Howling Hops Brewery	Craft beer brewery	Bold and distinctive beers with a variety of flavours and formats	Revenue: £1.4m (2019), Employees: 16 (2019)

Summary of findings:

• Beavertown Brewery is one of the leading craft beer breweries in the UK, with a strong brand identity and a loyal fan base.
• Beavertown Brewery faces competition from other craft beer breweries in London that offer similar products and services, as well as from mainstream beer brands that have entered the craft segment.
• Beavertown Brewery has a competitive advantage in terms of its innovation and creativity, as well as its partnership with Heineken that provides financial support and distribution channels.
• Beavertown Brewery can leverage its online presence and subscription service to increase its off-trade sales and customer loyalty, especially during the COVID-19 pandemic that has affected the on-trade sector.
• Beavertown Brewery can also expand its product portfolio to cater to different consumer preferences and occasions, such as alcohol-free beers, seasonal beers and barrel aged beers.
• Beavertown Brewery can target its core audience of young, urban and adventurous beer drinkers