1. What will we do with the money?


All of the money raised will be used to further develop our business. This will include:

Opening an Iconic city centre Brewpub in the heart of Bristol. We have the Compressor Building secured in the Finzels Reach Development and will turn this 7500 sq ft space into a world class destination venue. It will house a 2500L brewhouse with serving tanks and canning line, a bar area with a capacity of 220 people, a restaurant on the first floor (more on that later) and an event space on the top floor.

We will further develop our existing 2500L brewhouse in St Philips, Bristol turning it into the cities first dedicated sour beer facility with extensive barrel store. Here we will house Foudres, hundreds of barrels and Bristol' first Coolship, along with a tap room to drink these beers from source.


2. What will the food concept be?


We have an agreement with one of Bristol’s most prominent chefs (Michelin Star, Multiple national awards) to lead the food offering in our brewpub. They will lease the first floor in its entirety where they will house a development kitchen for their Michelin Star venue. We hope to see a Michelin star awarded to the venue in a short time. They will also house a street food kitchen, serving a relaxed yet high quality menu to our downstairs. You will be accessing world class food, created by Michelin Star level chefs at a bar price point.

We will be making a major press announcement early next week as to the identity of the chef.  


3. What is the timeline for investment?


We go publicly live on Crowdcube Friday 2nd March with a private launch on the night of Thursday 1st March. Invites to the private launch will be sent out via our Investors  Mailing List (if you are not signed up to this please do so via the link below!!). At this time no money changes hands, you are simply pledging to transfer the money once the pitch completes. We expect to be live for a month, and money will be required around 4 weeks from completion. You can expect to be asked by Crowdcube (who deal with the money and share transfer) to transfer funds around late April.

Investments of this nature carry risks to your capital as well as potential rewards


4. What is the timeline for the Brewpub?


We hope to be open by November.


5. Are we taking a lease or buying the Brewpub premises?


We are purchasing the 250 year Long Leasehold of the Compressor Building at the Finzels Reach Development for a sum of £1.4m. We are taking a commercial mortgage of this entire value to fund this and have built the repayments of this into our projections. We are more than confident that the profits yielded from the business will allow us to service this debt and own the Brewpub in entirety with no debt within 15 years. With a 250 year LLH  we will see appreciation in the value of the property way beyond the expected lifespan of our business. We expect the building to have appreciated after our fit out alone to around £2.5m.


6. What can you expect to receive for your investment?


We hope to bring people into our business who are looking for more than just an increase on share value and an exit plan for recouping their investment. We do recognise however that despite your motivations for investing into our business there has to be some financial reward. We will of course have some epic perks (more on that later), but we also expect that during the time you own shares in our business we will see serious appreciation in the value of our business. With the appreciation in value of the brewpub premises and the profits we project through year 1 and 2 of the premises being live we expect to see an increase in value to around £15m to £20m by that time. By year 5 of the brewpub being live we would expect to have seen an increase of somewhere between 5 and 10 times value.  


7. How did you come to your valuation


The valuation of our company and the shares we would release during our campaign was one of the most discussed topics during our preparation. Ultimately small breweries have recently been traded and sold for extremely high values that stand outside any traditional model for how you may value a business. Camden, Meantime, Brixton and London Field all selling for significant values well beyond multiples of EBITDA  have helped set a high bar that others have been able to follow. Wild Beer, Hop Stuff, Redchurch, Tyne Bank, Seven Bro's, Red Squirrel and Camden Town (before they sold entirely)  have all sold equity via Crowdcube and done so again at values that defy traditional valuation models. That left us with a question of how we go about setting a value that adequately rewards the investor, leaving significant room for appreciation in value and ultimate return on investment. We've analysed all previous brewery Crowdcube raises, both in their turnover and profit margins, and had long conversations with our accountant trying to balance a traditional valuation with a realistic expectation of what our value. We based those conversations on our position in the market, projections and current turnover and profit. We also based it on our successful raise last year at a valuation of 2.5m (for further info on this see question 12 below). We feel strongly that the valuation is a fair reflection of our current business, with a slight nod to the work we've put in securing the premises at Finzels Reach and our partnership with renowned chef Peter Sanchez-Iglesias and the increase in value that those plans will bring to the business. We also firmly believe that we have left significant room for appreciation in value, and that anyone that investing in LHG at this stage will see a 5 to 10 times appreciation in value over the next 5 years. How you'll realise that value? See the next question!


8. What’s the exit?


We have absolutely no intention to sell our business to anyone else. We’ve seen too often small breweries build a business around community and trust, transparency and honesty with their customers and then utterly undermine that trust by selling to big business and not only damaging their own beer and brand but also damaging the craft beer scene and culture as a whole. That’s not us. But we do recognise that we can’t work forever, and that you will want some assurance that you’ll actually see the appreciation in value of your shares turn into cash at some time in the future. Which is why around year 5 we hope that we can offer to buy your shares back from you at 5 to 10 times the value you buy them from us now. There will be no obligation to sell, but we hope that will be in a financial position to make the offer. Why would we do this? Check out the next question!


9. How will you ensure that the culture you have now remains as you grow and expand to operating 2 sites.


During this share offer we are gifting shares to every one of the people who work in our brewery and bars. It is utterly critical to us that as we grow our business we not only grow the turnover and profit, but that we also grow the sense of community within the team. We want to build and nurture a group of people that feel a true sense of ownership of the project they work within, and create an environment where they feel valued and have the ability to truly express themselves. To feel that they have a voice, a place and that their impact into the business and the beer is real. To do this we feel that they need to have a true and impactful ownership of the business. In year 5 we intend to offer to purchase back initial investors shares and offer in our own shares to create an employee share ownership plan which will allow every employee in our business the ability to increase their ownership year by year and them to have a voice in the future of our business.  

Check out Modern Times for a great example of this:

10. is there tax relief on my investment


We have a pre-authorisation application in with HMRC for the EIS tax scheme which we expect to have approved by mid March. This will give eligible investors up to 30% tax relief on their investment.
The availability of any tax relief, including SEIS and EIS, depends on the individual circumstances of each investor and the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of tax reliefs, or the tax treatment of your investment, you should seek independent tax advice before proceeding with your investment.
Further information can be found via the link below.




11. our projected profits are ambitious. Can you achieve them?


Within the team we have huge experience running businesses within the craft beer sector with bars, craft beer wholesale companies and breweries within our CV’s. We have a solid understanding of the costs involved at each point from production to logistics to operating retail venue’s. Our projections have been built directly from real world experience, and based around gross and net profits that we personally have achieved. The brewpub throws out some really great numbers as we lose a huge amount of the costs normally associated with a brewery. We lower packaging costs, pretty much write off transportations cost and lower our carbon footprint as an added bonus. We’ve built in turnover figures in the brewpub at figures significantly less than Small Bar on King St and many other craft beer venues in the city centre. We believe that the projections we have built in are not only achievable, but that we can exceed them.


12. You sold shares last year at a business valuation of £2.5m. Why has the business tripled in value in under a year?


We sold shares last year when we were still Cuckoo brewers to fund the build of our brewery in St Phillips, Bristol. We launched our new brewery in Oct 2017 and more than tripled our sales in the first 2 months of brewing. We have maintained that sales rate and are seeing X3 increase on sales in comparison to last year. With bringing our brewing onto our own brewery and the introduction of cans (that yield a larger margin than keg and significantly larger than cask) we have seen our profit margins rocket. Since that share sale in 2017 we have bought our own brewery and significantly increased the assets owned by the business. We believe that all this more than justifies the increase in value we have placed on the business.


13. Who were the shares sold to in 2017?


The shares were sold to family and friends all of whom had been keen to invest in our business for some time. Two of whom supported our business at its inception and reinvested at that time. A large number of the people who invested last year are reinvesting again at this share offer.  


14. What perks can I expect to see for investing?


We will release these as a full blog later this week.


15. What are Foudres and Coolships??


Our Foudres are essentially large barrels for aging beer in. We buy them second hand from a company in Italy and they usually have housed red wine before we turn them to holding our beer.

A Coolship (traditionally spelled koelschip) is a broad, open topped vessel that is used in the production of spontaneously fermented beer. The practise has been maintained in the Seine Valley of Belgium by the local lambic producers throughout the years with the practice becoming more popular around the world recently. The wort (beer in it’s unfermented state) is left in the open topped Coolship overnight to cool and become inoculated by the airborne bacteria of the area. It is then transferred to barrels where it ferments out solely via the yeast picked up naturally from the air.

There is only one brewery in the area using a Coolship currently (the small but utterly awesome Mills Brewing) and only a handful in the UK. There are currently none in Bristol. Our Coolship will allow us to create beers that are truly intrinsically linked to the city of Bristol and its environment.

Investments of this nature carry risks to your capital as well as potential rewards