Crowdfunding Australia

Two Thumb Brewing

PrivateRetail
Offer LiveDeal ClosedCloses:
  • Type: Retail and Wholesale
  • Total Round Size (min): NZ$400,000
  • Total Round Size (max): NZ$1,500,000
  • Price per share: NZD$75

Christchurch's leading craft brewery!

Offer Live

Two Thumb Brewing Co

Two Thumb is a Christchurch based craft brewery that has seen exceptional growth, built a loyal following and is on a mission to make the rest of New Zealand fall just as in love with its exceptional beers!

  • Fees Paid by Issuer
    : 6%
  • Minimum Parcel Size
    : $300
  • FX Rate
    : 1 AUD = 1.11 NZD

Offer Overview

Company Overview

Two Thumb was taken over by Dave Dixon and Mark Limber after a night out on the beer … where all the best ideas start.  Whilst sampling the produce, they jokingly vowed to buy the brewery if it ever came up for sale.  The very next week the brewery did come up for sale and Dave and Mark made good on their promise and bought the business.  At that time, Two Thumb was very much a hobby enterprise selling a few bottles into local stores and supermarkets, and off-licence sales direct from the brewery. 

Since then the brewery has expanded and grown rapidly, from turning over $82k in the first year, to being on track to achieve $1.5million in this financial year.  During 2022, Andy Annable joined Mark and Dave as a third Director to drive operations as the business rapidly expands.

This tremendous growth has meant that the team have had to expand beyond their original brewpub in Christchurch’s Manchester St to keep up. 

At the start of 2022, Two Thumb moved into a state-of-the-art facility built in 2018 by Lion Nathan in Colombo Street Central Christchurch. The new facility not only provides a new brewpub, but increases annual production capability from 50,000 to over 1 million litres. 

This far exceeds current brewing demand for the Two Thumb bars and so provides the opportunity to grow retail sales to supermarkets, bars and restaurants across New Zealand and deliver additional revenues from opening further Two Thumb venues. 

At such a pivotal moment in the growth of the brewery, the team are looking to raise funds to bring on additional sales and marketing resources, execute the tremendous growth opportunities ahead, and bring their new shareholders along for the ride and provide them with a significant return on their investment.

Our Beer

A good beer with good friends has always been at the heart of Two Thumb, and our range of beers has developed over time with that in mind.

Our core range is designed to cover a variety of styles and preferences. We cover the full spectrum of light to dark, with our Pilsner, Hazy IPA, Red IPA and Milk Stout - something for everyone. The recent additions of Yorkshire Bitter and Cider covers just about everyone’s palate.

It’s not all about the core range - Two Thumb are well known for trying something new, and having an ever changing range of beers to choose from. We are constantly putting down new seasonal brews to tempt the taste buds of anyone who wants to try something new. Many of these have become so popular that they are brewed almost as often as the core range! Our Kolsch, Extra Special Bitter and Porter are so popular they are affectionately known as the ‘almost core’.

Investment Highlights

  1. Opportunity to get in at the ground floor

    With the investment in equipment already made and the production capacity already in place, Two Thumb is set to double its turnover in the next 12 months and expects to be cash flow positive in that time. This provides incoming investors a unique opportunity to get in at the ground floor, at a pivotal moment in the growth of this company.

  2. Consistent Growth

    Since 2017 revenue has grown over 750%. In FY23 alone Two Thumb is on target to grow more than 150%, and are planning to increase revenue to $3.5m by the end of FY24 driven by a clear and achievable growth strategy.

  3. Major distribution agreements in place ready for expansion

    Two Thumb are approved suppliers for Foodstuffs (New World, Pak n Save, Henrys, Four Square) and Countdown stores nationwide.  Whilst they have always had a presence in these stores, they have never prioritised these markets due to the previously constrained capacity. 

    The business is now ideally positioned to realise its potential in this sector. 

    Key to the distribution network is the on-tap channel (bars, pubs etc). Two Thumb beers can be found at a number of independently owned bars and restaurants around Christchurch and a growing number further afield.  The strategy is to significantly grow this number over the next 12 months through additional in house sales resources on the ground across New Zealand.

  4. A Loyal Community of Fans

    Two Thumb attracts a wide range of beer lovers from all walks of life.  Their customers appreciate quality, a well-balanced product and dedication to the craft. 

    There is an active social media following of over 5200 on Facebook and 2500 on Instagram.  Two Thumb run a Thumbs Up Club loyalty programme of fans that visit both venues regularly and receive a weekly newsletter, discounts and invites to special events.

  5. Strong Management Team

    The core management team have a strong mix of essential qualities to ensure success.  With solid experience in business management, production, hospitality and customer service industries, the team have the collective skills and experience to make Two Thumb Brewing a market leader.

Investor Rewards

Debut Album

For investments between: $300 - $1,000

  • 10% discount off all bar drinks at any Two Thumb venue
  • A birthday gift voucher each year. We’ll shout you a beer at the bar or online every year.
  • Your own personalised owners club membership card
Chart Topper

For investments between: $1,001 - $5,000

  • 10% discount off all bar drinks at any Two Thumb venue
  • A birthday gift voucher each year. We’ll shout you a beer at the bar or online every year.
  • Your own personalised owners club membership card
  • Branded merch pack: Bottle opener, beer glass, cap, tee shirt and hoodie
Greatest Hits

For investments between: $5,001 - $10,000

  • 15% discount off all bar drinks at any Two Thumb venue
  • A birthday gift voucher each year. We’ll shout you a beer at the bar or online every year.
  • Your own personalised owners club membership card
  • Branded merch pack: Bottle opener, beer glass, cap, tee shirt and hoodie
  • Invitation to an annual ‘Significant Investor’ event. We know how to throw a party and this one will be special!
  • Your name on a significant investor board in the brewery bar
Platinum Disc

For investments between: $10,001 - $24,999

  • 15% discount off all bar drinks at any Two Thumb venue
  • A birthday gift voucher each year. We’ll shout you a beer at the bar or online every year.
  • Your own personalised owners club membership card
  • Branded merch pack: Bottle opener, beer glass, cap, tee shirt and hoodie
  • Invitation to an annual ‘Significant Investor’ event. We know how to throw a party and this one will be special!
  • Your name on a significant investor board in the brewery bar
  • Join a Brew Day and name the beer. We’ll brew a fresh batch of beer and consult you on the recipe, name and label. You can even brew it with us.
  • Personalised Two Thumb glass. Your own beer glass behind the bar.
Rock n Roll Hall of Fame

For investments above: $25,000

  • 20% discount off all bar drinks at any Two Thumb venue
  • A birthday gift voucher each year. We’ll shout you a beer at the bar or online every year.
  • Your own personalised owners club membership card
  • Branded merch pack: Bottle opener, beer glass, cap, tee shirt and hoodie
  • Invitation to an annual ‘Significant Investor’ event. We know how to throw a party and this one will be special!
  • Your name on a significant investor board in the brewery bar
  • Join a Brew Day and name the beer. We’ll brew a fresh batch of beer and consult you on the recipe, name and label. You can even brew it with us.
  • Personalised Two Thumb glass. Your own beer glass behind the bar.
  • Have one of our fermenters named after you so every beer has your name on it.

Growth Strategy

Grow sales through retail and bars

With additional sales and production resources on board, our aim is to fully utilise our distribution networks into stores, bars, and restaurants and grow our retail sales to circa $1m within the next 12 months. We will also develop international export markets for our packaged products. This channel has been underserved historically due to production constraints. In order to build one of New Zealand’s strongest performing craft beers brands, it’s imperative that our following and distribution is as strong in Auckland and Wellington as it is in Christchurch.

Increase market share in brew bar destination venues

Our brew bar model is an important pillar of our growth strategy. Brew bar venues enable us to not only sell our product at a higher margin but the sales are predictable, repeating and we get paid immediately. In addition to this we get a direct connection to our customer base which means we get buy in to our brand and we learn first hand what our customers expect from us. We can move quickly and have full control over quality and pricing. This model has proven successful globally with brands like Brewdog who have their own bars all over the world and locally in New Zealand with brands like Good George and Sprig & Fern. All of that aside, we are damn good at it!!

With the funds raised, Two Thumb aims to open our third venue with a view of quickly developing a recognised network of Two Thumb venues nationwide. We will develop a franchise model for owner operators to invest in their own share of the Two Thumb experience.

Consolidate the brand

Two Thumb will continue to be recognised as an industry leader in independent brewing. We will continue to consolidate our brand and further develop our ‘green’ credentials off the back of our eco-friendly production brewing technology

Profitability

We will become more profitable by investing in efficient packaging equipment and become less reliant on externally contracted services. An in-house canning line is a must-have item as well as improved efficiency keg washing and filling machinery.

An in house canning line is estimated to save us at least $20,000 in FYE 24 due to reduced contract canning fees, rising each year as sales in this sector grow.

Additional keg washing and filling equipment is estimated to save $10- 15,000 each year in operational costs of cleaning and filling kegs.

People

Two Thumb is proud to be an accredited Living Wage employer and we will continue to ensure that our staff are well cared for. We will retain our reputation as an employer of choice. Funds raised will recruit new staff in sales, marketing and production capability to capitalise on the retail sales market and additional front of house and kitchen staff to resources to grow our brewpub model.

Key Team Members

Team Member

Mark Limber

Co- Founder, Commercial Director

Mark has run businesses all his life, across various sectors including retail, construction, healthcare and technology. He is also a sought after independent business advisor and management consultant. Marks’ responsibilities at Two Thumb are commercial and financial management, contracts and pricing, compliance and legal oversight.

Team Member

Dave Dixon

Co-Founder, Production Director

Dave oversees all brewing and production operations. A prolific home brewer for 40 years, some of his well trusted recipes now feature in the Two Thumb line up. Our flagship product Yorkshire Bitter goes back to his university days in the UK and is still his firm favourite! A teacher and education manager by trade he now oversees recipes, production scheduling, packaging and logistics.

Team Member

Andy Annable

Operations Director

Andy is the classic example of a Two Thumb customer and fan becoming part of the business. He moved first from one side of the bar to the other, then to General Manager and finally to Shareholder and Director. He has a background in tourism, hospitality and sales and as our Operations Director makes sure everything runs smoothly on the ground at all our venues as well as managing key accounts with our major customers

Team Member

Alex Grimshaw

Head Brewer

Alex initially trained as a chef but changed careers to join Two Thumb almost at the beginning. He is now responsible for all brewing operations. Having spent the first 5 years perfecting our beers with Dave on the very manual hand cranked brew kit at Manchester Street, he is now thoroughly enjoying pumping out much bigger volumes in our new production brewery at Colombo Street.

Why Equity Crowdfunding

Two Thumb has seen tremendous growth since 2017, and wouldn’t be where they are today without the loyal and dedicated support of its customers and community. The journey started as a passion project, but very quickly it became clear that there was a  great opportunity to build one of New Zealand’s great craft breweries. 

Equity Crowdfunding is a unique way to enable  customers, suppliers and staff to come along for the ride as co-owners of the business and share in its future success. 

Two Thumb Brewing Co is at a pivotal moment in its growth.  Additional investment will allow the business to capitalise on the opportunities in front of it. Growing revenue through increased sales in supermarkets bars and restaurants along with establishing further Two Thumb managed venues will deliver dividends and increase value and returns for its shareholders.

We hope that you share this vision too and come on board as an investor and co-owner of Two Thumb Brewing.

Financial Overview

For further information see section 2.3 of the Offer Document.

Use of Funds

Key Risks

For further information see section 1.10 of the Offer Document.

Competition Risk

Craft brewing continues to remain a highly competitive area both locally and internationally. The Company could lose market share if more players in the market took the approach. Large and acquisitive conglomerates present a further threat to the independent craft brewery model.

Mitigation

Our mixed model of venues and wholesale retail remains our advantage. We will continue to sell a very large proportion of our product over our own bars whilst maintaining a strong presence on supermarket shelves for consumers to enjoy at home.

Key Person Risk

Two Thumb is a founder-led company with a few key team members integral to the running and growth of the business. If one or more of these individuals were to leave the business, failure to replace them adequately may harm company objectives.

Mitigation

Shareholder agreements have restrictive covenants in place for founders to mitigate loss of experience to competitors. All founding directors have invested significantly both financially and in their time and are fully committed to the vision.

Expansion Risk

The Company is currently focused heavily on Christchurch and the South Island region. It is looking to expand its sales and brand recognition across NZ which carries inherent risks There are several variables involved each of which may slow down and impact on expansion plans.

Mitigation

Sales staff contracts are heavily commission focussed. Primary focus is on venues strategy where sales are predictable, secure and paid immediately to support cash flow. Expansion in retail sales primarily focussed on supermarkets where shelf placement once won remains secure and debtors pay on time

Construction Risk

Core to the Company's strategy is the focus on its brewpub venues. Creating additional venues is part of the current roadmap. Construction of new venues also presents a key risk to the business. Should construction costs blow out or if progress is delayed, the Company’s growth objectives may not be met.

Mitigation

The current market post covid is presenting good opportunities to step into venues with ready to trade fitouts and/or requiring minimal construction. Especially where previous merchants have not had a strong, high quality or significantly different offer to survive the economic slowdown. We will seek out these opportunities. Colombo Street is a prime example of this

Brand Risk

Two Thumb has created a strong and growing brand reputation within the NZ craft brewery scene. With expansion comes the risk that core brand values are diluted and lost with scale, which may impact the underlying value of the business.

Mitigation

Strongly maintain our core values of high quality, strong community and good value. Ensure that expansion further afield includes owner operators committed to our ethos.