Company Description
We Disrupt. You Can Join us.\nThis is our 10th year farming, brewing, and building community on the unceded territory of the Skwxwú7mesh Úxwumixw (Squamish Nation). Our ‘farmhouse’ approach integrates onsite farming in support of local food security, regenerative agriculture, and brewing high-quality beer. Solid growth reinforces our company - and we’re just getting going. Take the next steps with us as we scale up - our network of shareholder-ambassadors, our sales, our venues, our carbon-sequestering farming practices, and our positive impact on the community.Our success over the last decade has established our beer, cider, and food products as best-in-class. Our business is seen as a leader in Canada, moreover, we’ve been an activist company instigating innovation and uplifting consumer expectations of business. We’ve inspired dozens of businesses to follow in our stead. We’ve grown strong in our operations, cash flow, and profitability, it is time for us to grow again. We'd love you to join us. \nOur JourneyTogether We Will Go FartherEstablished in 2012, Persephone Brewing Co. was created to prove a theory - that beer could fuel positive impact including economic development, food security, and community resilience. Together with our friends, partners, shareholders and team members, WE have done that and more. In 2013, we purchased our farm, planted thousands of hops, installed the brewhouse, and hired our first team members. The early years of Persephone saw fast growth averaging upwards of 30% per year catalyzed by a plethora of earned media, dozens of beer awards, and an extraordinary brand narrative. In 2015 we became the first (and, to date, the ONLY) brewery in Western Canada to be certified as a B-Corp. This Certification ensures that our business meets the highest standards of verified social and environmental performance, public transparency, and accountability to balance profit and purpose. We have since been recognized as being amongst the top 5% best performing B Corps globally - Best For the World, as it were. We raised capital in 2016, employing the FrontFundr platform, and looking back, we learned one powerful lesson: the craft-beer drinking, local food-advocating, social-hiring, and impact-investing crowd… are our people. The 140+ shareholders that subscribed through the crowdfunding platform have been among our greatest champions in times of need, our greatest supporters, ambassadors, allies, influencers, partners, and friends through thick and thin. 2016 also brought our first major adversity in the form of the Agricultural Land Reserve (ALR) not being equipped to accommodate a beer farm within the Regulations. Persephone was told, ‘... adhere to the Regulations or leave…’ This existential threat birthed our SAVE THE BEER FARM campaign, igniting thousands of supporters across the Province. We spent two years working with the Province of BC to recognize the value in the craft beer industry, aligning small business values with farming legislation. We (i.e. PBC shored up by our crowd of supporters from across the Province) succeeded in changing Regulations that had been in place for more than 40 years! 2020 brought COVID into our homes and businesses alike and, here again, was an opportunity for our crowd to come together. PBC collaborated with hundreds of volunteers, dozens of local businesses, financial and government partners to ensure that no one isolated would be hungry. We overcame and came out on the other side of this global pandemic stronger than ever. We have been fortunate to receive credit and praise beyond our years and yet, we are humbled by the constant and unyielding reminder that WE, we the community, we the crowd, WE did this together. WE are why it is time to grow. We need more of you and we need more of this.\nOur FarmFarm to Table and Farm to BarrelWe are located within the Agricultural Land Reserve (ALR) and operate a real, small, farm and craft brewery in the community of Gibsons on BC’s Sunshine Coast. Our property consists of three large fields, two apple orchards, two market gardens, two greenhouses, and a chicken coop that houses a flock of laying hens. Our farmhouse approach integrates onsite growing of hops, barley, and other food crops to support our products and local food security. All hops, apples, and veggies on our farm are grown using only organic, regenerative practices to minimize the impact on our land, soils, and water, while sequestering carbon in the fight against climate change.Community is at the centre of what we do, and it is reflected in our farm, brand, growth and our customers’ experience. We have a tasting room and several picnic areas that are extraordinary spaces for friends and family to come together to connect and grow. Our self-guided tour will take you for a serene walk amongst the birds, bees, and all while you sip your beers. We have event facilities that hold many community events, fundraisers, harvest festivals, and live music, all of which have entrenched Persephone in the hearts of locals and visitors alike. \nProductCold Beer, Warm HeartsOver the last decade we’ve produced about 4000 batches and 4 million liters of beer and cider including more than 60 different brands. Our core line-up includes six beers and a dry-hopped cider. We take great pride in choosing the best quality ingredients and, as a result, we’ve won many awards at local, regional, provincial and national competitions. One particularly innovative and exciting product is our Pollinator Pilsner. Persephone and TELUS Agriculture wanted British Columbians to toast with Canada’s most sustainable and traceable beer last summer. With an expressed commitment to sustainable brewing and supporting the agriculture industry, we wanted customers to be able to follow every stage of the Canadian-grown malt barley from the time seeds are sown in the field to the moment the ice-cold pilsner is poured into their glass. In addition to offering beer drinkers verified traceability, Pollinator Pilsner includes certified organic hops and honey sourced right from our certified bee-friendly farm. Seeing success with the Pollinator, we decided to raise the barley bar even further. As of September 2021 all of our pilsner malt comes from our farm partner in Peace River, Alberta and is fully traceable, from farm to glass.\n\nHow it WorksNot Your Average BreweryOur integrated agricultural activities extend beyond the realm of production. We are a multi-functional farm that blends a number of environmental, community-building, and educational activities. These activities have a direct and indirect contribution to food security, business development, and community economic development of the region. \n\nTractionAwards, Certifications and GrowthWe’ve earned many awards for our products, our activism, and our commitment to using business as a force for good. We’ve also grown tremendously through adversity, dedication, and determination. Along with the recognition for our beers, we have also received accolades and certificates for our business. Our awards and certifications help us articulate our impact and motivate us to do better every single day. We have received multiple awards including a REFBC Land Award and the CLBC Widening Our World (WOW) award for creating employment and inclusion for individuals with developmental disabilities and many more. \nBusiness ModelFrom Our Farm to Our GlassWith a list of more than 1000 listed distribution accounts, our primary sales channels to get our beer to our customers include: on-farm sales; on-premise accounts and off-premise accounts. Over the last year, here is how those combine to our total sales:On-farm sales: 37% of total incomeOn-premise accounts (sold by the keg): 13% of total incomeOff-premise accounts (sold by the can or bottle): 52% of total incomeOn-farm refers to our over the counter sales at our Beer Farm, in Gibsons, BC. The profit margins on beer from our own taps are by far the most lucrative so we nurture this sales channel carefully. We hold many community events, fundraisers, harvest festivals, and long table dinners, and feature live music every Saturday and Sunday afternoon, all of which have entrenched Persephone in the hearts of locals and visitors as a highly-desirable destination.On-premise sales refer to our accounts that sell beer for consumption at their restaurant, bar or pub. Since January 2021 alone, we’ve sold 243 on-premise accounts. Sales at on-premise accounts are critical as many customers try new products from the tap before they buy products in a packaged, retail format. Off-premise sales refers to accounts that sell our beer in a packaged format, for customers to consume with their friends and family, at home, on the beach, or the cabin, etc. These amount to 238 private liquor stores plus 113 BC Liquor stores. Jan 2021 to the present, 27% of our total revenue is beer/cider by the keg, and 65% of our total revenue is beer/cider in cans/bottles.\nMarketing & SalesMother Nature’s Favourite Beer Without a doubt, our most effective and valuable forms of marketing are the imagery and experience of our farm, earned media and word of mouth. These organic forms of marketing have come relatively easily with the idyllic setting, visuals and engagement with our farm. Our story has consistently attracted traditional media outlets, with earned stories in local, provincial, national and international publications. Our marketing and sales strategies run broad and deep as all mature consumer-facing companies must. Marketing campaigns have included billboards, bus shelters, newspapers, industry publications, and of course Social Media. Below are still examples of animated ads for our IPA and Goddess Golden Ale. Watch the ads hereand here.MarketFollowers, Fans & Fanatics There are several trends that have spurred a massive shift from macro-breweries to craft breweries. Here are key trends in our industry:Being social is back - Coming out of COVID everyone wants to come out from drinking alone or in small groups and want back to a social experience while they craft.Eco-conscious consumerism - Within the beer industry we’re seeing more thoughtfulness and more questions from consumers about where their products are coming from and what impact they’re having.Emphasis on Food – Deepening food culture has led to increased popularity of pairing beer with food, which has spurred flavour experimentation and creativity. Drinking Less, Paying More - People are growing increasingly more conscious about what they eat and drink, and they are more willing to spend money on a small quantity of the really good stuff.The Refined Beer Drinker - It is not uncommon for beer drinkers to have exceptionally refined tastes; they now approach choosing their beer the same way a sommelier would a bottle of wine.Organic, Regenerative and Local - As consumers grow more health conscious and more knowledgeable about food and beverages, and where they come from, they demand that brewers take just as much care when sourcing their ingredients, emphasizing local, seasonal, and organic.These factors, especially the latter, define our largest target market – people that appreciate or want to, collectively, grow with the conscious food and beverage movement. A socially and ecologically conscious beer drinker will choose our beer over a macro brewery because of the connection to growing locally, being a part of something, because our networks overlap and because we continue to be head and shoulders above the rest.Use of FundsHere We Grow Again!We are raising capital to, once again, have beer fuel the expansion of our business, sales, community, and impact. We are devoted to our vision of making world-class beer, building healthy local food systems, and strengthening the community. To achieve this, we are raising with the help of FrontFundr. In simple terms, the funds raised will be used for:Growing our network of shareholders, ambassadors, customers and allies.Improving and adding to our farm.Introducing new products. Expanding to new spaces across the region. Developing a deep regenerative agriculture backbone infrastructure.\nIndustry ComparablesShareholder Network EffectBrewdog, a Scottish Craft Beer Company, introduced the first round of Equity for Punks back in 2010, changing the world of small business at a stroke. Before then if you wanted to invest in a brewery you would have needed a huge amount of cash and a willing financial wizard at your side. They wanted to change all of that. They believe the people who drink their beer should have the opportunity to buy shares in BrewDog and become involved in everything they do. By 2019, having fully embraced crowdfunding as a growth methodology, they had 108,000 shareholders, raising ￡70M, growing revenue to ￡171M, expanding to more than 111 pubs across dozens of countries and communities. This is an incredible example of using crowdfunding to grow their consumer base, capital stack, venues and brand. To some extent they’ve also been able to utilize a Network Effect. The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service. The internet is an example of the network effect. Initially, there were few users on the internet since it was of little value to anyone outside of the military and some research scientists.However, as more users gained access to the internet, they produced more content, information, and services. The development and improvement of websites attracted more users to connect and do business with each other. As the internet experienced increases in traffic, it offered more value, leading to a network effect.Brewdog’s most recent, and last, Equity for Punks Round just ended with a $30M raise from 78,000 Punks with all of the funds earmarked for “sustainability projects.” Brewdog Certified as a B Corp in 2021.Future GoalsBees, Beers, and Bowling! We are devoted to our vision of making world-class beer, building healthy local food systems, and strengthening the community. We named this campaign for elements that represent what and who we are:Bees: Our farm is pollinated (in part) by our own farm bees and we use their honey to flavour some of our brews. Pollinators - bees, butterflies, bats, birds and other creatures are integral to life everywhere. For us, bees are a perfect example of our people - from our busy brewers, our dedicated sales team and servers, to our friends in community and of course every Shareholder. This campaign focusses on strengthening our relationships and building more connections with new networks through beer, regenerative agriculture, and through community-building. We’re a beer farm: no bees, no farm; no farm, no beer.Beers: Anthropologists theorize that when humans learned to ferment grain into beer more than 10,000 years ago, it became one of our most important sources of nutrition. Ever since, across the planet, beer has been a staple of agriculture, nutrition, and of civilization. Beer brings people together. It’s an instigator and builder of relationships and of community.Bowling: Once upon a time, bowling was an important pastime that brought together friends and family. It’s a community-building pastime! Persephone Brewing Company grows community hubs and spaces where community can engage. When beer AND bowling are included - all the better.Our Goals for this campaign are four-fold:\nJoin us in becoming an investor today.Thank You!(...if on your mobile, keep scrolling to find out about our perks below!)* Offerings on the platform contain forward-looking information. 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