Since 2019, distribution channels for breweries have become more accessible and diverse. Since then, we’ve seen significant growth in 3 key brewery areas:
- Direct-to-consumer subscription services
- Increased demand from supermarkets due to product diversification
- The growth of tap rooms
With cash flow at the heart of all these projects survival, we have seen more businesses seeking alternative funding options to thrive.
Our aim is to work with breweries to understand their unique needs and present them with options to support their business growth, whatever that means to them.
Some of the more typical activities we see are breweries wanting to grow their brewhouse, purchase canning lines and upgrade equipment.
Two of our existing customers provide perfect examples of how Moorgate have helped breweries to not only maintain their existing activities but grow too.
Brewery 1
This brewery was looking to upgrade their brewhouse with new tanks and centrifuge due to increased demand.
They also needed funds to expand their premises to accommodate the new equipment and increase space for their taproom.
After scoping the requirements, we:
- Arranged a loan so they could pay for the equipment to be built and shipped in advance of delivery. We were also able to split the draw down, so they didn’t pay interest until the money was in use, as part of the funds was due on delivery.
- Help with the application for a local council grant – this helped the business grow without the need to take on unnecessary debt.
- Offered lower rate than a competitor, with a dedicated account manager who visited the business and took the time to understand their ambitions.
- Gave options around commercial mortgages to facilitate further growth and aid the longer-term goals of the business.
Brewery 2
This customer has driven their business growth by selling direct to consumers for the last five years, and due to customer lead demand were approached by pubs, restaurants and national supermarkets to stock their beers. The businesses they were looking to work with offered payment terms of over 30 days, putting their own cash flow under increased pressure. We were able to provide the following support:
- Provided a large invoice discounting facility, which allowed the customer to release up to 90% of the invoice value the day its raised.
- In turn, this allowed the business a flexible credit facility which allowed them to take on larger contracts with national suppliers who require payment terms.
- This allowed us to release funds immediately to them, meaning they could agree additional supply which wasn’t possible before due to cashflow.
- This long-term solution means that the business can be confident they have support growing their business.
By having a close relationship with brewers and their businesses, our brewery specialists are able to offer their bespoke expertise to create innovative funding solutions that drive businesses forward. We’ve also found that growth and finance doesn’t just extend to lending – we’ve extended both the availability and knowledge of Personal Guarantee insurance for both new and existing contracts, as well as foreign currency exchange facilities for purchases from abroad.
Regardless of where you are in the business cycle, from start-up to PLC, there are options available to suit every need for your business. We’d encourage you to have a chat with a specialise, even if it’s just to discuss your longer-term ambitions.