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Sullivan's Brewing Co

Profile
Our mission is to resurrect the lost art of world-class Irish brewing in Kilkenny.

Location
IE Kilkenny, Ireland

Categories: Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C

Social Media
Website
www.sullivansbrewingcompany.com/
Company number
541748
Incorporation date
31 Mar 2014
Investment sought:
€700,050
Equity offered:
9.44%
Funded 16 Dec 2019
Investment
amount:
€1,578,454
Valuation
(pre-money):
€6,712,485

Idea

Introduction

Our mission is to resurrect the lost art of world class Irish brewing, leveraging our Kilkenny brewing heritage, the rightful home of craft brewing in Ireland.

With your investment, we will drive continued momentum of our brand around the globe, through Distinct and Authentic Irish Craft Ales, Lagers, and Stouts.

Sullivan’s Brewing Company 1702 Ltd was relaunched in June 2016 by Chairman Paul Smithwick (of the globally branded Irish Beer Smithwick’s, which was built by his forefathers in 1710 and ultimately sold in 1965 to Guinness, who then sold to Diageo in 1997).

Sullivan’s is headquartered in Kilkenny, in the heart of the city, where true Irish craft brewing first began hundreds of years ago.

This is also home to our Tap Room, Brewhouse, Visiting Center, and retail Outlet.

Led by a Team with Global Premium Branding and Market Experience as well as World Class Brewing Experience (from Diageo and Heineken), we bring a premium craft experience with laser focus.

Pint on wooden table

Intended impact

Problem
Traditional beer sales declining, while premium craft and imports expanding (segment grew 5% in 2017) largely tracking the same in 2018.

Opportunity
Premium craft Irish brew to consumers seeking taste, character, authenticity and distinctiveness in their beer willing to pay a premium for beers that they believe are made with more care, attention and quality.

Market
The global beer market was estimated at $593 billion in 2017 and projected to reach $685 billion by 2025.

Target
Consumer Premium and Craft Beer Adventurers (Global Irish Diaspora Est 80M+).

Our Fast To Market Strategy business has developed quickly through great routes to market. We’ve partnered with established distribution partners in US regional markets and by notable distribution firms in UK/Ireland, giving us distinct access into the Irish Dense Premium and Craft markets.

Gold ale caption

Substantial accomplishments to date

Aug 16: Re-launch of our Taproom & Draft beer business in Kilkenny after a 100 year absence.

Nov 16: Launch of our Draft business in Dublin with LT Distribution Partner C&C Gleesons Ltd.

Dec 17: Launch of Draft business in Buffalo, NY with LT Distributor Partner Try It Co.

Apr 17: Awarded Champion Ale Trophy (Best Ale in the World) at the Burton on Trent International Beer Awards (1,100+ beers tasted by 45 master brewers
from around the world).

May 17: Re launch of Draft business in Belfast, N. Ireland and LT Distributor Partner Tennents N. Ireland.

June 17: Taproom in Kilkenny turns profit after just 9 months.

Apr 18: Launch of Draft business in the Capital Region of NY and LT Distributor Partner Saratoga Eagle Co.

June 18: Launch of new Irish Gold Draft into the Buffalo market.

Sept 18: Irish Tourist Dept. Grant for Visitor Centre works at Taproom in Kilkenny (€190k).

Nov 18: Launch of new packaged beer range (Red & Gold ale) into the Buffalo market / Added Wegmans Supermarket.

Dec 18: Irish Enterprise Board Grant (to €250k) to support business growth.

Feb 19: Launch of new packaged Can beer in Buffalo & Capital Region (NY).

Mar 19: Launch of Draft beer business into Syracuse NY & Cleveland OH and establish LT distributor partnerships.

May 19: Launch of Draft beer business into Rochester, NY & Erie, PA and establish LT distributor partnerships.

Sept 19: Launch of Sullivans Stout into Buffalo & Saratoga, NY.

Pint shot

Monetisation strategy

Our strategy is to develop strategic alliances on route to market in the U.S., Ireland, the UK and mainland Europe. We achieve our stand-out presence in on-premise & off-premise outlets by thinking "globally, but acting locally”, focusing on key outlet clusters initially by contiguous market. We then use insightful market & channel understanding to build & sustain long-term relationships with our key distributors & bar management/staff to drive sales.

We have been using an organic, self-driven market entry model as we build scale & momentum. As we achieve greater unit sales & critical mass (which we expect once trajectory to 40K cases per year are established), we will increasingly be able to shift focus to a broader partnership model. This model will provide access to distributor partners for in-market entry, (thus greater & faster sales, import & marketing cost efficiencies). We expects to be fully leveraging this partnership model across additional markets by late 2020.

Red ale beer mat caption

Use of proceeds

Seedrs funding will be directly used to open new markets in USA and UK. This will translate directly into a "feet on the street" sales hires.

Black marble mat caption


Please note there is an AIB overdraft facility of €50,000.

Investor Perks

Bronze:

• Invest €100 and you receive a 10% lifetime discount on all Sullivans
Beer & Wood-Fired Pizza and Merchandise @ The Tap Room. (pssst!…the
pizza is AWESOME, see here).

Silver:

• Invest €250 and you receive a 15% lifetime discount on all Sullivans
Beer, Wood-Fired Pizza & Merchandise @ The Tap Room. Includes your
complimentary Sullivans t-shirt, to be collected on your first visit...

Gold:

• Invest €500, you receive Silver above, plus membership of the Sullivans
Mug Club (Pint Pitcher with your name engraved, to be hung especially for you
@ The Tap Room, awaiting your every return visit!)

Platinum:

• Invest €1000, you receive Gold above, and you will be immortalized
in a piece of Irish brewing history! Your name will be engraved & displayed in
the Sullivans Brewing Experience. Be it either in our Stone Paving at the foot of
the brewhouse, or on the “Sullivans Hero Wall”, you will forever be known as a
pillar of the Sullivans Beer revival….

Key Information

The company currently has 3 classes of shares, convertible preference shares, A ordinary shares and ordinary shares. All investors in this round, including Seedrs investors, will be receiving ordinary shares.

The rights attached to the share classes are as follows:

Convertible preference shares:

• Full voting rights
• Accumulating preferred dividend of 8% per annum
• 1x non-participating preference on liquidation: the preferred shareholder will first receive their initial investment amount plus the accrued dividend before the remaining proceeds are distributed between all other shareholders pro-rata.
• Redemption rights: on or after the 5th anniversary of issuance, the preferred shareholder will be able to request that the company redeem the shares for the initial investment amount plus accrued dividends.
• Share sale or asset sale: the preferred shareholder will have the right to convert the convertible preference shares into ordinary shares at a 55% discount on a share sale or asset sale. If not converted, the Company must redeem the convertible preference shares prior to any share sale or immediately after any asset sale for the initial investment paid plus any accrued dividend plus a premium equal to the lesser of (i) initial investment or (ii) an amount equal to 10% of the entire issued voting capital of the Company as at the date of such share sale or asset sale.
• IPO or qualifying investment: on an IPO or "qualifying investment" (determined solely by the shareholder), the preferred shareholder will have the right to convert the preferred shares into ordinary shares at a discount of between 15% to 55% depending on the time when the IPO or investment takes place (First Conversion Event)
• After the First Conversion Event, if the preferred shareholder holds any further shares, there is a second chance for the shareholder to convert on the next qualifying investment round (determined solely by the preferred shareholder) at no discount.
General ability to convert: on or after the date which is one month before the 5th anniversary of issuance, the preferred shareholder has the right to convert the convertible preference shares into ordinary shares at a discount of 55% of the "market value" of the company's share at that time.

A Ordinary Shares:

• Management performance shares
• No voting rights
• No preference, conversion or redemption rights
• Convertible to ordinary shares on approval of board once certain metrics are met

Ordinary Shares:

• Full voting rights
• No preference, conversion or redemption rights

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

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This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.