Yeastie Boys looks to raise new capital

Yeastie Boys creative director Stu McKinlay, New Zealand Herald Photograph by Mark Mitchell

Craft brewer Yeastie Boys will look to raise up to £2 million in new capital to fund expansion in the UK market.

The company, founded in Wellington by beer enthusiasts Stu McKinlay and Sam Possenniskie in 2008, hit headlines when a 2015 crowdfunding campaign to raise $500,000 hit its target in just half an hour, with 212 shareholders taking a total of 12.5 per cent stake.

That money was used to establish the business in the UK.

In his report for the annual general meeting - held on Saturday - chairperson Mark Kippenberger said the UK business had grown rapidly in its first full trading year.

The challenge was to finance production to meet demand and grow sales volume to levels that would deliver healthy profits, he said.

"Accordingly it is our goal to raise up to £2 million capital to enable further resources and expansion in working capital."

The ANZ Craft Beer Industry Insights report released last week showed 194 craft breweries in New Zealand are producing more than 1600 unique beers.

Small breweries now account for 5.8 per cent of total beer consumption in New Zealand (by volume) - up from 4.9 per cent in 2015.

After a period of rapid growth the industry was consolidating a little with growth dipping - from 28 per cent down to 22 per cent by volume, and from 39 per cent by value down to 32 per cent.

But by value it accounted for 10 per cent of consumption, up from 8.5 per cent in 2015.