London-based craft brewery Hop Stuff launched their second crowdfunding campaign on Crowdcube last week, smashing through 50 percent of their £500,000 target in just five days.
The start-up brewery, currently based in Woolwich, was started by owner and founder James Yeoman in 2013. After starting a career in the city with Lloyds bank, Yeoman quit to follow his dream and open Hop Stuff. Since then, brewing capacity has grown by 400 percent over the past three years to become one of London’s biggest independent brewers.
The brewery opened its first bar, The Taproom, in 2015, and with the money raising from crowdfunding Hop Stuff plans to open two more bars in London and the South East. This is the second round of funding for Hop Stuff, who beat their initial £50,000 target to raise £58,300 back in 2013.
In its latest Crowdcube pitch, the company says: “We have a demonstrable track record of beating our own forecasts. In 2013 we forecast Hop Stuff would be turning over around £480,000 by this year; we’re currently on track to double that (based on four months of sales). Profitability is set to rise with the growth of our own outlets and cost-saving efficiency of the new brewhouse.”
The booming craft beer industry shows no sign of slowing, with the number of UK breweries rising by 8 percent to around 1,700 over the past year.
Breweries are becoming increasingly profitable and have been the subject of several high profile acquisitions of late, including last week’s sale of SAB Miller beer brands to Japan’s Asahi.
Accountancy group UHY Hacker Young has also found that drinkers in the UK are increasingly willing to pay premium prices for a luxury product. James Simmonds from UHY Hacker Young commented:
“Craft beer is leading the way in the surging popularity of artisan products and has pushed aside other brands in high street bars. Many are now firmly established household names.”
He added: “This increasing popularity has transformed many microbreweries into highly profitable businesses for entrepreneurs looking for a niche position in the food and drinks market”.
Sounds like a sound investment? Visit Hop Stuff’s campaign page here.