Brewdog shares

N1AK

Paddypaws wrote: »

Has anyone invested in Brewdog the Scottish Craft Beer Company?
Is the a wise investment?

I gave it some serious thought. The truth is that unless you drink in their pubs or buy a lot from their website then it it probably wouldn't count as a good 'investment'.

That doesn't mean it isn't worth buying some. I decided against it because the postage for web sales means there's no point in buying even with the discount for being a shareholder; additionally the shares value the company extremely highly. The value isn't unreasonable because they are expanding very rapidly in sales, bars, shops but as a company based on an 'outsiders', 'little guys' and 'non-corporate' image I wonder how big they can get before the customers who are drawn to that image stop seeing them that way.

pat_cashmoney

Their success is entirely due to hipster popularity. Once all the "cool dudes" stop being interested in beer, Brewdog will slip back into obscurity.

pd53

Assuming these 'cool dudes' are men, when do men stop being interested in beer. Surely as men get older they'd prefer a craft / IPA rather than the bland lagers brewdog rally against.
Though I'm aware this may start taking this thread off topic - sorry!

cos_2

cos wrote: »

My car also needs new wheel bearings, so the head has ruled the heart. However, I will definitely buy their beer!

Car repaired today - cost £336. I'd thought about buying four BrewDog shares, which would have cost £380, so I think I was right in getting the car fixed.

I like the company, but don't feel 'driven' to invest at the moment.

bowlhead99

pd53 wrote: »

Assuming these 'cool dudes' are men, when do men stop being interested in beer. Surely as men get older they'd prefer a craft / IPA rather than the bland lagers brewdog rally against.
Though I'm aware this may start taking this thread off topic - sorry!

Investing in a fashion brand is always tricky. As random examples from the world of clothing, within the last 3 years Supergroup (makers of Super Dry) might have been bought for 760p, later 1860p, later 270p and now 790p. Muberry: 270p, later 2500p and now 900p.

It doesn't mean that people have started or stopped being interested in clothes generally: ASOS who sell everybody else's clothes through the internet have happilly gone from <1000p to >4000p in the same time (I'm still regretting not buying about 5 years ago as I remember thinking the rise from 120p to 320p was a little too rapid...).

Essentially you are right, beer has been popular for hundreds of years. But microbreweries and 'craft' beers have gone in and out of fashion, so while the idea of selling real beer rather than the mass-produced lagers has always been popular with a certain set (certainly in an "old man pub" rather than a trendy wine bar), the buyers in the "old man pub" are not typically going to be buying branded niche drinks like Punk IPA, Mashtag or Electric India (nice though they are) over their entire lifetime.

Someone in their twenties or thirties might currently love the vibe of punky grungy craft beer at an "iPhone" price point. But ten years ago people suddenly rediscovered the idea of drinking cider with ice in. In the 90s it was alcopops, from studenty ones like Two Dogs and Hooper's Hooch to the 'sophistication' of Smirnoff Ice. In the 80s you had your Babycham and your Cinzano Bianco. All marketed aspirationally, some sticking around longer than others.

If you're a Diageo, you can keep adding the high fashion stuff to your portfolio and sell millions of drinks year in year out. If you're an 'alternative' non-mass-market brewer and all you do is craft beer and have some urban bars, you might get a cult following but will that cult go 'mainstream' enough for proper market penetration while keeping its USP of being a cool alternative to the mass market stuff?

I'm sure when Apple brought out the iPod there would have been some people saying "this will be mainstream popular, people have always liked music" and others saying "why is it twice the price of an equivalent just because it looks pretty when it doesn't do a better job, this is simply going to be a fashion fad". They ended up with the best of both worlds, selling a pretty product at a premium price point AND going mainstream - the share price liked that very much indeed. Now after taking over the world, Apple's users are still viewed snarkily as hipsters by those outside the cult while the products are worshipped by those within it.

Of course Brewdog could be the 'next big thing' while maintaining cult status and making millions, so today's price might be a bargain. But ultimately, this fundraising is for fans - as mentioned, the serious VC investors bought in at a sixth of the price in the last year or two. You might want to buy the shares in the same way fans want to buy shares in Arsenal, Spurs or Man U. Mostly with their hearts rather than their heads. Sometimes it works out financially and sometimes it doesn't.

pat_cashmoney

pd53 wrote: »

Assuming these 'cool dudes' are men, when do men stop being interested in beer. Surely as men get older they'd prefer a craft / IPA rather than the bland lagers brewdog rally against.
Though I'm aware this may start taking this thread off topic - sorry!

haha! By which time they will be old dudes rather than cool dudes, and Brewdog loses it's cred with the yoof and thus the decline kicks in :beer:

astraiton

Ive just returned from living in New York for 2.5 years and i can tell you that craft beer is not going to go away anytime soon. The craft beer 'revolution' started in the 90's in the USA and there are now about 2500 craft beer breweries, and another 1500 are in the works. Some restaurants in NYC have beer sommeliers (called a cicerone) to help you match your beer to your different courses. craft beer accounts for 6% of beer sales in the USA, however, if you go to any bar in any major cities you'll probably find at least 5 craft beers on tap for every bud or miller...i hope brewdog paves the way for craft beer here in the UK as ive been back for a week and find the beers scene in London very boring unless you make an effort to goto a select number of bars.

sabretoothtigger

USA does have some awful beers though so salvation was overdue for them

However, I will definitely buy their beer!

That could be the best indicator. I dont see that as ruling with your heart, believing in a product does count for something.
Quite a few stateside backed Apple on that basis and they were right

I was looking at CREE who make LED and they are amazing advancers in that sector and well justified however they are 100x PE so is the growth that likely right now. I think no is too possible, I have held them before though and maintain an interest so maybe people should wait even if they dont commit now.

Biggles

astraiton wrote: »

The craft beer 'revolution' started in the 90's in the USA

No, only the name 'craft beer' started in the US. Micro-breweries and brewpubs had already been big business here for maybe 20 or more years but it's good that the US is finally making some decent stuff.

But it's not just bars in major cities, we were over there nearly ten years ago and I don't think we ever encountered a bar in even a small town that didn't have a few micro-brewery taps as well as the 'usual suspects'.

Obviously, it isn't real beer, as we think of it in this country, but as long as you don't mind the gas, some of it can be quite passable.

pazza2000

JoeCrystal wrote: »

EDIT: Although it seems that you could trade/sell shares through some website anyway.

What other websites? I purchased a couple of these, and to be honest if there is a route to offload these, even at some cost, I would be happy to go forward.

Thanks