Thoughts on Local Brewing Fundrasier

This echoes the backlash over the Stone IndieGogo campaign a few weeks back. I think a lot of people (myself included) are uncomfortable with private corporations "crowdfunding" what are essentially capital investments into their businesses.

Get a loan or offer some actual equity, like traditional business investments.

 

I'd rather a brewery have my money than a bank though.

EDIT: Actually I'm not sure how I feel about this after thinking about it.

 

I love the "$1,000 investment for a lifetime worth of beer" story from a few months back.

 

Yeah I think it's getting into murky waters when breweries start this kind of stuff. But, on the other hand, if you are well off and want to invest some money to get the perks then more power to ya.

 

All depends on the brewery. Modern Times launched a very succesful Kickstarter- great thing was they were very clear about where the $40k was going, and where any extended $ earned would go. The rewards were plentiful and fun, too. It was very clear that this was part of their initial fundraising, but probably less than 5% of what they raised privately.

 

It seems like these are pretty standard restaurant expansion things that have gone on forever... names on bricks, naming menu items, private barrels, private parties, etc.. They're just using a website to manage the transactions.

People got on Stone's case because of the amount they wanted to raise, the out-of-proportion rewards, and the fact that Stone is, well, Stone and shouldn't be asking fans to take on risk while they reap rewards.

 

So, for a new brewery what other incentives or rewards would make you contribute to a crowdfunding campaign?
Myself I vote for: brewing your very own beer with the master brewer, help design the recipe with his guidance, work through the entire brewing process, have fun , learn a lot in the process then enjoy it

 

I won't bite for any crowd-funding effort unless stock ownership is involved and I have a good feeling that the majority owner knows good business practices, and maybe more importantly, knows good beer from bad beer.

 

I have commented on these threads in the past, but I am still blown away by the concept.

Give a guy $25.00 to further enrich himself, and he'll give you a sticker, a button and a coaster.

ABC will get my financial support in in March when I buy a 6 pack of Michael Faricy's Irish Stout for St Patrick's day

 

I wouldn't ever support a kickstarter campaign but would consider investing if I gained actual equity, as mentioned above.

Yet with how popular beer is and how foolish / loose people are with their wallets I don't blame breweries at all.
Free "investment" money you have no obligation to produce any return upon must be a god send.

 

There's a new brewery opening up in SE Mich that started a crowdfunding campaign in early August....they currently have $550 of a $75,000 goal met, with 25 days remaining. Construction and work on the building is still being done, but it makes you wonder what the $75K was going to be for and what will they not do in the brewery or with the beer without the $75K

 

I don't think Kickstarter is inherently bad. It can be a useful platform for artisitic and non-profit initiatives, areas in which there's no expectation of a financial return on investments. It's when for-profit companies use it as a way to price-discriminate more money out of their loyal fans that I find it distasteful.

 

The perks on this crowd funding seemed to be relatively close in vaue to the dollar asks so they're just trading goods for cash which I'm guessing they need immediately. Also, nobody seems to have a problem with a mug club membership or secret reserve society stuff. It's the same kind of thing.

 

a while ago, i think jolly pumpkin did a kickstarter equivalent to fund some kind of taproom somewhere. they had one 'reward' which was basically $500 up front for 100 growler fills. five dollars a growler fill. that is how you do an established-business kickstarter.

 

A new brewery is opening down the street from me and a few months back - while still in the infancy of their construction - they solicited/promoted a "growler club" for $70 (theoretically to raise some additional upfront cash, as they were nowhere ready to open). I know it's not Kickstarter, but the end result seems the same: money now for something later.

Seemed like a no-brainer. I joined (as did about 175 others) and for $70 upfront "investment" I get a 32 oz. growler a month, a shirt and a few other freebies. Seemed like a bargain to help out a small business that I will likely be frequenting.

In fact there's a "growler club member" private opening tonight (09/09), and the brewery opens to public on 09/10.

 

You get nothing of value for the $5-$10 level. For $25.00 you get a coaster and a bumper sticker. I don't know what the price is on bumper stickers by you is but they go for about a buck by me.

As the donation goes up, the value is there, but if you donate the lesser amounts that are listed you are just donating your hard earned cash to allow others to enrich themselves.

 

I see value in my name on a brick. Value is relative. Use your imagination there champ - you ask out the chick of your dreams and take her to the ABC pub for drinks and dinner (at the newly installed kitchen of course). Towards the end of the date you casually point to your brick telling her you helped fund this brewery to which she immediately asks you back to her place.

 

Totally valid point.

 

I don't think the wife would like that very much champ!