Inner-west Sydney brewery Sauce have announced an equity crowdfunding campaign with OnMarket. They're currently seeking expressions of interest before the campaign goes live on
Sauce launched in late 2016 before opening their Marrickville brewpub, complete with one of inner Sydney's best beer gardens, the following year. They recently added the Twizzle range of canned cocktails to their offering.
For more on the upcoming crowdfunding campaign, see below.
Media Release: Sauce Brewing Co launch expression of interest campaign for equity crowd fund
At Sauce Brewing Co, our "Flavour First" philosophy isn't just a motto - it's the foundation of our journey from a humble microbrewery to a pioneer of the Inner West Ale Trail, and our recent diversification into craft cocktails. Driven by our founder, Mike, and our team's boundless creativity, we are dedicated to innovation and community at every step.
- Uncompromising Flavour & Innovation. Each beer in our lineup is crafted under our relentless commitment to perfection. Our diverse range caters to every palate, with bold flavours that spark delight.
- Leading Innovation. Our exciting new range of craft cocktails – Twizzle – are at the forefront of an emerging subcategory in premium RTD’s: Ready-to-Serve (RTS) cocktails. This category is forecast to grow at an incredible 12.5% annually over the next 5 years. By brewing our alcohol inhouse rather than buying in distilled spirit, we’re remaining true to our roots while avoiding the higher alcopops excise tax. Twizzle turns any spot into a cocktail hotspot – just pop, pour and enjoy.
- Community and Taproom: The Heart of Our Growth. Our local community and the vibrant atmosphere of our Marrickville taproom are central to our success. Despite economic challenges, we've seen an impressive 15% increase in taproom revenue year on year. Our commitment to 'Flavour First', expansive beer garden, and local engagement has not only strengthened our roots but also sets us apart. As we continue to innovate, our taproom remains a key element of success, reflecting the loyalty and enthusiasm of our supporters.
THE ELEPHANT IN THE ROOM?
“Breweries seem to be dropping like flies - why would anyone invest in a craft brewery right now?”
For sure, there are industry-wide, and economy-wide, challenges, from which we have not been immune.
However, our experience has taught us a lot, and we saw current industry trends well before they got to where they are today. And so last year, we made the hard decisions and put in the hard work, to put our business on a more solid footing, and to set ourselves up for sustainable growth.
Here’s why we’re confident:
- We diversified and invested in R&D into future growth categories. The launch of Twizzle Cocktails puts us firmly in the sights of newer generations of drinkers, who are looking beyond beer. We’ve seen encouraging early growth – 13% per month on average in just the first few months. And the number of stockists is on the rise, including Dan Murphys in NSW and ACT.
- Community and Taproom. Our local community and the vibrant atmosphere of our Marrickville taproom are central to our growth, and anyone who knows the inner workings of a craft brewery knows that to survive, you need a thriving taproom. Despite economic challenges, we've seen an impressive 15% increase in taproom revenue year on year.
- The hard decisions have been made and we’re through the pain. We’ve restructured our business, reducing costs, reinvesting in the business and focusing on what works best. That meant closing our underperforming FNQ taproom, exiting a non-strategic shareholder, an injection of funds from our founder, and settling our ATO debt. This has de-risked the business when compared to many of our peers, who name unsustainable ATO debt as their biggest challenge.
- We’ve never taken our eye off the ball. Despite our new focus on cocktails, craft beer remains at the heart of Sauce Brewing Co, and our team can “walk and chew gum at the same time”. For example, we recently landed a deal to launch our Hazy Pale Ale into 100+ Bottlemart stores across NSW. For a little brewery like Sauce, that’s a big win and an encouraging turn-around from the doom and gloom of 2023.
Join us as we shape the future of craft brewing, creating experiences that are shared joyfully from the Inner West to the rest of Australia. Your investment will help us to leverage our strengths; to scale and grow:
- Sales & marketing activities
- Equipment upgrades to scale our cocktail production
- Taproom enhancements and a focus on more events and activities, to widen our audience and grow our community
- Additional taproom. Learning the lessons from FNQ, we’ll find a smaller space requiring minimal upfront capital, to convert into a new Sauce venue. We’ll bring the Sauce experience to new locales, while utilising existing brewing capacity at Marrickville.
Own Shares in Sauce Brewing Co: https://www.onmarket.com.au/offers/sauce-brewing-eoi/
Always consider the general CSF risk warning and offer document before investing
