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Crumbs Brewing

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Our mission is to make waste wonderful. We turn unsold artisan bread into a range of delicious beers.

103%
 - 
Funded 17 Jan 2023
£150,013 target
£154,761 from 196 investors
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Business overview

Location Reigate, United Kingdom
Social media
Website www.crumbsbrewing.co.uk
Sectors Food & Beverage Non-Digital Mixed B2B/B2C
Company number 11900889
Incorporation date 23 Mar 2019
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Investment summary

Type Equity
Valuation (pre-money) £2M
Equity offered 7.17%
Share price £18.19
Tax relief

EIS

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Business highlights

  • Sold nationally via Waitrose and John Lewis since 2020
  • Revenue almost doubled in the last three years*
  • Saved over 35,000 loaves from being wasted, B corp pending
  • Planted a tree and fed those in need with every online sale
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Key features

  • Secondary Market
  • Nominee investment min. £18.19 +
  • Direct investment min. £20,000.00 +
  • Idea
  • Key Information
  • Investor Perks
  • Team
  • Updates
  • Investors 196
  • Discussion
  • Documents

Idea

Introduction

Bread is the second most wasted food of UK households. Food production is a significant contributor to climate change. So, food waste isn't just wasteful, it is also harming our planet.

That stat shocked my wife and I so much we decided to do something about it. We created Crumbs Brewing, a brand that turns unsold loaves from our local artisan bakery into a range of delicious beers.

We built the business from scratch starting locally, selling our beers alongside our baker at markets. Since then, we've grown to supply Waitrose and John Lewis nationally, as well as Southern Co-op, the National Trust and a wide range of pubs, restaurants, hotels and farm shops.

We are passionate that the bread we use in our brews should mean something to the beer quality and flavour. Each beer is made with a single type of loaf, that way the beer reflects the bread that makes it.

We believe it is the sweet spot of a great purpose and a great product story. It's delicious beer, bread differently.

*based on unaudited management accounts.

Substantial accomplishments to date

Crumbs was born out of a desire to do something in our local foodie community with a positive, sustainable purpose at its heart. The strength of our brand has already meant we have made great progress in taking the brand to national prominence:
· Gained listing in 175 Waitrose stores in 2020
· “Best Seller” beer gift pack online and in 35 John Lewis stores
· Supply the Exclusive and the Hand Picked hotel groups
· Supply Southern Coop, the National Trust and Fuller’s pubs across the southeast
· Supply over 50 independent pubs, restaurants, delis and farm shops

We've piqued the interest of many media outlets and reviewers:
· Tasted on Channel 4’s Sunday Brunch. “This beer is so delicious I could drink it for breakfast” Vick Hope, Radio 1 DJ
· Featured on ITV ‘Love Your Weekend’. “This is like Guinness on steroids” Alan Titchmarsh
· “Immaculately balanced, this is malty magic” Olly Smith – TV Drinks Specialist
· “It’s the kind of beer that reminds me how diverse and delicious beer can be” The Drinks Maven, Beer Writer

We've been recognised with awards for our products and for our sustainable business purpose
· Winners of two great taste awards
· Twice winners of the RBBC business awards. Start-up of the year and sustainable business of the year
· Winners of the CREST sustainability awards for ‘transforming food’
· Finalists in the Great British Entrepreneur Awards 2022

We estimate we've saved over 35,000 loaves from waste, planted a tree and donated to the Food Cycle charity with every online sale

Monetisation strategy

We have developed a range of 4 core beers available in bottle, can and keg. We sell to the on trade and off trade direct and via a number of distribution partners (e.g. Great British Exchange and the Social Supermarket). We sell direct to consumers via our web shop and at festivals.

Each beer is brewed using one type of left-over loaf, each has its own distinct character.

Our success to date has been driven by our 3P’s
· Our Purpose: fighting the growing problem of food waste and appealing to consumers and businesses that share our desire to do something good for the planet
· Our Product: our innovative approach to brewing, using single varieties of artisan bread to make great tasting, quality beer. Our innovative ‘wasted’ ingredient will always mean something to the beer it makes.
· Our Place: Having started as a ‘local’ brand, our local partnerships and presence in the communities in which we operate is key. Even as we embark on national/ global growth we will not lose sight of that.

Use of proceeds

With your support, we intend to drive our growth in line with our 3P strategy.
Driving our PLACE (50% of investment)
Cementing our home ‘place’ with the creation of a Crumbs Hub to sell direct to consumers. Expanding our ‘place’ nationally through local partnerships with more bakeries across the country.
Driving our PRODUCT (25% of investment)
Creation of new product partnerships with brands that share our mission to fight food waste. These partnerships will also open new routes to market. For example, creation of the world’s first Naan Laager.

Driving our PURPOSE (25% of investment)
Greater investment in the marketing and communication of our unique purpose – via our physical assets and our media channels. Better leveraging accreditations such as BCorp and the communication opportunities our national customer partnerships give us.

Key Information

Material Debt

The company has the following outstanding loan:

£25,000 BounceBack loan from NatWest at an interest rate of 2.5% per annum. The loan is to be repaid by May 2026.

The funds raised from this investment round will not be used to repay this loan.

Share Classes

All investors in this round, including Seedrs investors, will be receiving E Ordinary shares. E Ordinary shares shall rank equally with A, B, C and D shares in terms of voting, capital on winding up and dividends, the only difference being that A, B, C and D shares entitle the holders to receive preferential dividends in lieu of salary (the amount of which is capped at market salary rates).

Investor Perks

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Crumbs Brewing has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 11 November 2022 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £2,000,900

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

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Direct investment

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

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Security Token

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