In tight times, Colorado breweries ask their fans for cash
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Illustration: Sarah Grillo/Axios
If you've ever wanted to own a brewery, now's your chance — no experience required.
State of beer: In a tough market, Colorado breweries are increasingly turning loyal fans into part owners through crowdfunding campaigns that raise millions in capital.
- Westbound & Down is asking supporters to contribute $1.25 million to help open a Denver location and add brewing capacity at its Lafayette facility to expand distribution nationally.
- Lefthand Brewing recently secured more than $800,000 from the community. The fundraising will build on its recent acquisition of Dry Dock Brewing and help add more independent craft beer brands to its portfolio.
- Holidaily Brewing raised more than $916,000 in three months through a crowdfunding campaign that will help expand its distribution footprint beyond Colorado's borders.
What they're saying: "The amount of people reaching out saying we've loved this brand for a long time and how excited they are to invest in it — it speaks to the community we've been hoping to build," says Westbound CEO and director of brewing operations Jake Gardner.
The big picture: Outreach to nontraditional investors comes as the craft beer industry feels an economic pinch with an eroding customer base that is leading to fewer openings and more closings.
- The landscape is making traditional high-dollar investors skeptical, Left Hand's founder, Eric Wallace, tells us, but the crowdfunding campaigns are seeing huge success.
Zoom in: Westbound — which is leveraging its recent acquisition of two Western Slope breweries and recent high-profile awards — expected the crowdfunding campaign to run through September, but now they anticipate maxing out in June.
- The company is offering shares at $2.25 with a minimum investment of $735.75.
Longmont's Left Hand and Golden's Holidaily also entered the market from a position of strength, touting their respective national distribution contracts and unique gluten-free beer options.
- Left Hand added about 800 new investors during its recent WeFunder campaign.
The intrigue: "When the stock market is down, it doesn't mean there's not investment opportunities," Wallace says.