Employee Owned Modern Times Now Opening Ownership to Fans
Modern Times has taken to crowdfunding platform Wefunder to invite fans to join them as owners of the company.
The San Diego-based brewery, as you may recall, is already employee-owned, having announced back in the summer of 2017 that 30% of Modern Times would be held in an employee-stock ownership program.
Now they’re inviting more to the party.
Founder and CEO Jacob McKean laid it all out in a video posted to the site.
The company is selling shares based on a company valuation of $264 million, and fans can buy a common share for $253.
“Part of the reason we’re doing this is, Modern Times has vastly exceeded the expectations I had for it going in. … Today we have around 250 employees, we’re distributed in seven states, we’re going to do over $30 million a year in revenue, and all of this in a much shorter timeline then I ever dreamed possible.”
Add all this up, and it’s “created a company that really would benefit from a change in ownership structure that gives it some additional support,” Jacob said.
“What a lot of companies would do in our situation,” Jacob said, is bring in money, from a strategic partner, private equity, or something like that.
“We have tried really hard to stay independent during a very competitive time in the industry…. So we’re trying this because we really want to stay independent, we want to stay accountable to our fans and our employees, the people who make our success possible. And we want to do that on our own terms.”
So here’s the deal: Modern Times will open ownership up to the public on April 21. Essentially, “if you invest, you’re betting Modern Times will be worth more than $264M in the future.” In order to get funded, Modern Times must raise $50,187.
“This is a really rare chance to get in on a company that is doing really well and has a very bright future ahead of it,” Jacob concludes to viewers at the end of the video.
For good measure, they tallied up a handful of factoids to show off the company’s standing, such as:
They did $30.5 million in revenue in 2018, up 59% from 2017.
They’re the top-performing beer brand in Stone Distributing’s portfolio, in both dollars and volume. They saw a 30% increase in 2018 wholesale distribution in their home market of Southern California.
They don’t spend any money on advertising, yet they garnered the “sixth-largest social media following in independent craft beer through organic growth.”
Plus, they currently operate five tasting rooms, three breweries, two kitchens, and one coffee roastery. And planning to open three new locations this year.
NEWPORT CRAFT BREWING AGREES TO PURCHASE DEFUNCT BRAVEN BREWING’S INTELLECTUAL PROPERTY
A little over a month ago, news came in that Brooklyn’s Braven Company would close its doors and sell off the five-year-old concept. They’ve got a taker.
Rhode Island’s Newport Craft Brewing & Distilling announced yesterday that it has agreed to purchase the intellectual property of Braven, including beer recipes, customer lists, and other assets, per Newport RI.
“Acquiring the Braven intellectual property assets gives us the opportunity to continue Braven’s well-established brand and community connection while creating a new outlet for Newport Craft in New York City,” Newport Craft’s CEO and owner, Brendan O’Donnell, said in the announcement.
While Newport will indeed snatch up Braven’s IP, it clarified in the release that it will not continue Braven’s operations or assume any of Braven’s responsibilities. Terms of the deal were not disclosed. More as it rolls in.
Jenn, Jordan, and Harry
“If you are a dog and your owner suggests that you wear a sweater, suggest that he wear a tail.” – Fran Lebowitz
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