Brewdog Business Model: Decoding Successful Alcohol Delivery

Have you ever wondered how a small craft beer brand, BrewDog, became internationally known? 

Or, How did it raise over £5 million in just 20 days with crowdfunding? 

Or, How does it market its business? Or, How does it deliver craft beer to the doorsteps?

That’s a lot of “How”, isn’t it? Don’t worry, we’ll answer each one of them in BrewDog's success story blog.  

Everything from their creative approaches and sustainability values to how their choices impacted their market position. And, of course, how they grew by 13% when the whole beer market in the UK was down by 12%.

This story is for everyone: BrewDog fans, beer enthusiasts, or entrepreneurs seeking inspiration. 

From examining BrewDog's ethos to their plans for the future, we'll share the lessons and wisdom gathered from this impressive journey. 

And, We’ll tell you how you can get an alcohol delivery app solution just like BrewDog— Your own BrewDog clone app. 

So, let's uncover the secrets behind BrewDog's rise in the world of craft beers. Starting with a brief background, of course…

How BrewDog Was Born?- A Quick History

Picture two beer lovers, James Watt and Martin Dickie, in the small town of Ellon, Scotland. It's 2007, and they're tired of the usual beers on the market. They decide to mix things up — to shake the beer world. So, they invested in some second-hand equipment, and BrewDog was born.

James and Martin had big dreams. They wanted their brew to reach far beyond the boundaries of their hometown. To do this, they knew they needed a different approach. Instead of borrowing from banks or courting venture capitalists, they turned to the people who loved beer as much as they did. Through their innovative crowdfunding model, "Equity for Punks," they broke down the barriers. Funding came from those who wanted a beer and a stake in it.

The beers they brewed weren't run-of-the-mill. Each one boasted its unique personality — bold, disruptive, and, above all, flavorsome. Not shy about their creations, they branded their beers with attention-grabbing antics, getting their name on everyone's lips. And people started noticing.

From the foundation in Ellon, they've spread their wings across the globe. First, it was their bar in their hometown, Aberdeen - a local base for their newfound shareholders. Next, it was across the UK, then Europe, and before long, across the Atlantic. BrewDog bars, each pouring that same bold beer, sprung up in cities across the globe.

Today, BrewDog stands as a beacon in the beer world. It's a testament to what you can achieve with passion, innovation, and a darn good brew. It isn't just a brewery anymore; it's a global craft beer movement that shows no signs of slowing down. Remember, this all started with two guys and a dog, a brewdog.

Let’s Decode BrewDog’s Business Model

After journeying through BrewDog's history, we've seen how two Scottish beer enthusiasts built a global craft beer movement. Their bold dreams went far beyond brewing unique beers. They aimed to create a fantastic business that differed from traditional models.

That's where we're headed next—to decode BrewDog's innovative business model. In this section, we'll learn how BrewDog raised its funding, marketing strategies, sales channels, production operations, and app functionalities.

The goal? To gain clear insights into how to turn your brew into a worldwide phenomenon like BrewDog.

How did BrewDog raise its funding?

Beer may be BrewDog's game-changer, but they did more than brew exceptional ales. They reinvented the way a company could raise funds.

The duo opted for crowdfunding—a fairly uncharted territory back then—through the "Equity for Punks" campaign.

They invited fans, beer lovers, and the public to buy a stake in the business, becoming shareholders in the company.

Through multiple rounds of crowdfunding, BrewDog raised £5 million in just 20 days, bypassing traditional banking routes.

“It’s an amazing business model because we don’t see them as investors. They’re advocates, they’re ambassadors, they're on this journey with us. They’re the heart and soul of our business.” James Watt, Co-Founder.

It's not just about finance; this approach birthed a community of loyal shareholders who became ardent brand advocates. You, too, could use a similar approach, giving your customers a stake in your business and turning them into loyal promoters.

How does BrewDog market its business?

BrewDog's marketing is as unconventional as its business model. They've successfully used shock tactics, humor, and creativity to make a big splash with a relatively small budget.

For instance, they've wrapped beers in taxidermied animals, dropped ‘fat cat’ bankers from helicopters, and crafted beer at the bottom of the sea. These outrageous stunts grabbed headlines around the world.

The takeaway? A unique, outspoken brand profile can help create buzz, even with a limited marketing budget. You don't have to drop any bankers, but identifying and staying true to your unique brand voice can make your alcohol delivery business stand out.

Which sales channels BrewDog uses?

BrewDog built its business across multiple sales channels. They started with a focus on exports but soon established BrewDog bars globally.

However, they recognized that the craft beer movement needed to infiltrate the digital world. So, they started an online shop for beer deliveries at customers' doors.

No geographic restrictions, just globally accessible brews. When venturing into your own alcohol delivery business, think of it this way: meeting customers wherever they are, not just in a physical location but also in digital spaces.

How does BrewDog manage its production operations?

BrewDog plays a powerful card: vertical integration. It means they control every step of their production and sales processes.

From brewing to the bar, everything is in-house. Thus, They can ensure high quality and consistency in their products and brand experience.

Moreover, whilst expanding globally, BrewDog built breweries on other continents to cater to local demands, bypass import fees, and reduce shipping impacts. When building your business, consider BrewDog's hands-on, end-to-end approach to maintaining quality control.

How do Their Apps Operate?

BrewDog's power move into the digital realm included more than an online shop. They developed a well-rounded, user-friendly delivery app that connects brew-lovers to their favorite drafts.

The BrewDog app has a rich, flavorsome experience. Customers can browse the full range of beers, place orders, and track deliveries in real time. Delivery agents receive order notifications, identify the fastest route, and offer real-time updates.

The app features exclusive discounts, loyalty rewards, and the unique feature of rating and reviewing beers.

The admin panel oversees and manages orders, deliveries, and customer interactions. By incorporating all these apps' functionalities, you can provide your customers with a seamless and engaging beer delivery experience.

As we put down our glasses of BrewDog ale, we'll look ahead to how they've adapted their business model for alcohol delivery. We'll trace their path, navigating the complexities of packaging to legalities, ensuring quality and customer satisfaction. Grab your notes, and let's hop forward.

Overcoming the Challenges of Alcohol Delivery 

We've uncapped BrewDog's core business model. Now it's time to take a wider sip and understand how they managed something complex for any beverage company: Alcohol Delivery. 

From contending with the pandemic and regional rules right down to the quality and satisfaction of customers, this section will give you a clear view of how BrewDog overcame the challenges of alcohol delivery.

Tackling the Pandemic 

BrewDog didn't let the situation flatten their spirits when faced with the shutdown of bars and restaurants due to COVID-19. They swiftly leaned into their already-established online sales and delivery channel. 

They adapted business operations to meet the increased digital demand, expanding delivery areas and ensuring smooth operation despite the logistical issues caused by the pandemic. 

This rapid adaptation amplifies the importance of having multiple sales channels and being agile in response to changing market dynamics.

Tackling the legal requirements

Operation in the alcohol industry, particularly when it comes to delivery, is entwined with regulations that vary significantly across regions. BrewDog navigated this warren by thoroughly understanding local laws before breaking into a new market. 

They made sure to tick the regulatory boxes, applying for necessary licenses and making provisions for age verification upon delivery. When starting an alcohol delivery business, this approach is something to keenly follow: be aware of every aspect of your operating environment to avoid legal complications.

Tackling the Logistics

Once the legalities are out of the way, the next challenge is to pack and transport the brew safely to the customer. BrewDog gave attention to every detail, ensuring that their unique brews reached customers in prime condition. 

They invested in robust, eco-friendly packaging to prevent breakage and maintain ideal temperatures. By adopting a similar approach, you can ensure that your customers receive their orders as intended, thereby improving their overall experience.

Tackling Quality & Satisfaction Challenges

The quality of the brew in your customers' glass is equivalent to the success of your alcohol delivery business. BrewDog recognized this early on, and prioritizing quality became their brand's mantra. 

They meticulously control their vertically integrated process, ensuring that customers always get the top-notch product they expect. But the path doesn't end with quality brew; the satisfaction of their customers is equally essential. 

BrewDog goes beyond getting a product to a customer's doorstep: they focus on a full, rounded customer experience. Their app’s rating and reviewing feature lets customers voice their feedback, and BrewDog listens, improving their processes based on what their customers say.

New Developments and Future Outlook

We’ve dived deep into BrewDog’s journey, it’s time to swim back to the harbor & peer ahead into the horizon. What does the future look like for BrewDog? We can light the path forward by examining their current success, growth plans, sustainability goals, and industry opportunities.

Current Success and Growth Initiatives

BrewDog currently stands as one of the forerunners in the global craft beer scene. They generated £320m in revenue in 2022, up by 13% from 2021. That too, was when the whole beer market in the UK was down by 12%. The Q1 sale in 2023 is up by 20% compared to 2022. 

Their unique brews, DIY ethos, and disruptive marketing have turned them into a well-known brand. But BrewDog thinks in leaps, not steps. So they're focusing on growth. This includes expanding their beer range, opening new bars, and boarding on collaborations with other craft breweries.

Upcoming Products, Bar Expansions, and Collaborations

BrewDog has sketched exciting plans on their draft board. They're brewing up new flavors and styles to deck their ale arsenal. Not to mention, there are plans to add more locales to their global map of BrewDog bars. The goal? To bring BrewDog experience to more corners of the world.

On top of that, BrewDog values the power of collaboration. They're teaming up with other breweries, creating unique brews that showcase the strengths of all involved. This blend of ideas and expertise fuels creativity, adding more selection to their beer catalog.

Sustainability Goals and BrewDog's Public Image

Sustainability isn't just a bookmark on BrewDog's agenda; it's etched into their mission. They've pledged to reduce their environmental impact with clear goals: sourcing green energy, minimizing water usage, and ensuring their supply chain is eco-friendly.

This dedication has sharpened BrewDog's public image. They're not just a modern, fun brand; they're socially responsible too. Customers recognize that with every sip of BrewDog beer, they're supporting a sustainable company. This position has opened new doors for BrewDog, reaching eco-conscious customers and distinguishing them in the thriving craft beer market.

Future Opportunities for BrewDog and the Craft Beer Industry

As we look ahead, the craft beer industry is bubbling with opportunities for BrewDog. Consumers' growing preference for craft beer over large-scale, commercial brews indicates a robust market.

An interest in foreign beers also points towards room for expansion into new territories. Add to that the increasing demand for alcohol delivery, and BrewDog can stretch its digital reach. 

They can understand and tailor their offerings to suit regional preferences, expanding their customer base. Plus, adapting to newer technologies can streamline operations, improve their e-commerce infrastructure, and overall enhance the customer's shopping experience.

Can you model their success?

We’re at the final moments of this guide. Here, we will discuss whether or not you can model BrewDogs’ success. But before we go any further, we want to add that there’s no guarantee that if you do what BrewDog has done, you will be where they’re right now. It’s about having a solid plan, raving fans, funds, and a strong product.

With that being said, let’s take a look at the biggest takeaways from BrewDog success story:

First, stay true to your brand. BrewDog kept their unique voice and mission at the heart of everything they did. Embodying your brand creates a lasting impact.

Next, make your customers the priority. BrewDog treated their 'Equity Punks' with genuine appreciation and continuously focused on improving the customer experience. Satisfied customers are the lifeblood of any successful business.

Being adaptable is also crucial, as demonstrated by BrewDog's swift response to the pandemic. They capitalized on online sales and delivery, showing the importance of being agile when faced with unforeseen challenges.

Well, you can not clone the exact success of BrewDog, but with AppsRhino you can clone their mobile app and start delivering alcohol to your customer at their doorsteps.

In your BrewDog clone you will get:

A customer app with features like social media logins, in-app chat features, age & mobile number verification, order tracking, & multiple payment gateways. 

A delivery agent app with features like route optimization, SoS, availability toggle, geofencing, earning tracker, & active/in-active toggle. 

A liquor store owner app with inventory management, offers and promotions, and order management features. 

An admin panel allows you to manage customers, delivery agents, & liquor stores. You can use AI-powered analytics to track performance and make informed decisions.

Now, creating such end-to-end solutions can easily take up to three or four months, but with the base solution ready, we will deliver it to you within a month with all the customizations you want.

That too at flexible pricing plans.

Get in touch, tell us your requirements, get your BrewDog clone, & start selling! Simple!

Frequently Asked Questions (FAQs)

What is Brewdog's business model in the alcohol delivery industry?

Brewdog's business model in the alcohol delivery industry is based on a combination of factors that have contributed to their success. They focus on producing a wide range of high-quality craft beers, building a rebellious brand image, implementing innovative marketing strategies, and creating a unique customer experience. 

Their business model involves a strong emphasis on customer engagement, brand loyalty, and a customer-centric approach to alcohol delivery.

How did Brewdog establish its brand image in the alcohol delivery market?

Brewdog established its brand image in the alcohol delivery market through its rebellious and disruptive approach. They introduced unique and bold craft beers like the Punk IPA, which became a signature product and helped shape their brand identity. 

By positioning themselves as anti-establishment, Brewdog attracted a dedicated fanbase and built a strong brand with a loyal following.

What marketing strategies has Brewdog used to achieve success in alcohol delivery?

Brewdog has implemented various marketing strategies to achieve success in alcohol delivery. They have utilized unconventional marketing tactics such as provocative advertising campaigns, crowdfunding initiatives, and collaborations with other brands to generate buzz and engage their target audience. 

Their strong social media presence and active involvement in community events have also played significant roles in their marketing strategy.

How does Brewdog ensure customer engagement and brand loyalty in the alcohol delivery industry?

Brewdog focuses on customer engagement and brand loyalty by creating unique experiences for their customers. They have implemented initiatives like their "Equity for Punks" program, which allows fans to become shareholders in the company. They also organize events and offer incentives like exclusive access to limited-edition beers, brewery tours, and discounts to further engage and reward their loyal customers.

What role does technology play in Brewdog's alcohol delivery business model?

Technology plays a crucial role in BrewDog's alcohol delivery business model. They have implemented a modern and user-friendly e-commerce platform that allows customers to conveniently order their products online. 

They also leverage mobile apps and digital marketing to reach a wider audience and provide seamless customer experiences. By embracing technology and innovation, Brewdog stays ahead in the highly competitive alcohol delivery market.

What can other businesses in the alcohol delivery industry learn from Brewdog's success?

Other businesses in the alcohol delivery industry can learn several valuable lessons from Brewdog's success. Firstly, the importance of developing a strong brand image and identity that resonates with their target audience. 

Secondly, the significance of implementing innovative marketing strategies to stand out in a crowded market. Lastly, the emphasis is on prioritizing customer engagement, brand loyalty, and providing a unique customer experience to build a dedicated customer base.