Flavour First Innovation
Live - Open for Investment Sauce Brewing Co (Sauceco Pty Ltd)
Sauce Brewing Co (Sauceco Pty Ltd) | Equity Crowdfunding
Minimum Target $200,000
$176,487
Raised124
InvestorsOffer closing in
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FLAVOUR FIRST, with an eye on the future
Sauce Brewing Co was founded in 2016 with a clear vision: to create bold, flavourful beers and become a beacon for craft enthusiasts.
Sauce Brewing Co stands as a pioneer on the Inner West Ale Trail, with our flagship Marrickville taproom, award-winning beers, and community-centric beer garden.
More recently, our innovative new line of ready-to-serve craft cocktails, Twizzle, are redefining the premium drinks space and achieving rapid growth.
We’re raising capital to scale up our cocktail production, enhance and expand our taproom experience, and spread our Flavour First philosophy to new audiences.
Want to know more about Sauce Brewing Co, watch the Investor Q&A or listen to the audio podcast of the investor Q&A here.
Why invest
- 8 years in the game.
- Bold, award-winning beers with a fresh new look.
- Twizzle Cocktails – a premium beverage category forecast to outgrow all others at an incredible 12.5% annually.
- Impressive taproom and beer garden, loved by the local community and tourists alike. Strong growth (15% YoY) despite challenging times.
- Clean cap table & balance sheet, no ATO debt.
What we do
Amid a market brimming with compromises, we embarked on a mission to craft beers and ready-to-serve cocktails that delight the senses without cutting corners.
We designed our taproom in 2017 to bridge the gap from simple tasting room, to hospitality experience. Boosted by the first (and only) brewery beer garden in Sydney, we’ve built a diverse community of friends, from next door to the other side of the globe.
Our revenue is generated from two core streams, with two more adding further range to our revenue sources:
- Wholesale sales of kegs and packaged product, to bars and retailers. The volume generated is critical to absorbing our fixed production costs and achieving economies of scale.
- On-premise sales in our Marrickville taproom. 90% of on-premise sales are of beer and cocktails that we produce on-site. By selling directly to consumers at retail prices, we capture the full margin on each serve while offering a unique, immersive venue experience.
- Takeaways and online sales.
- Contract brewing – for gypsy brewers as well as established breweries needing extra capacity.
While beer has underpinned our early growth, and comprises the bulk of our sales, our new foray into RTS craft cocktails is delivering impressive new growth and puts us front and centre in one of the few beverage categories forecast to grow over the next 5 years. Our early-mover advantage puts us in prime position to establish a market-leading presence in this important new space.
Forward-looking
Sauce have identified key opportunities for growth:
- The craft beer industry has matured, with growth stabilised. Meanwhile, the premium RTS Cocktail segment is forecast to achieve a whopping 12.5% compound annual growth rate! Foreseeing this trend, Sauce invested in R&D in 2023 and created Twizzle Cocktails – a bold new line of craft cocktails in a can. Thanks to our early work, Twizzle has few direct competitors (yet). Now is the time to scale and grow with infrastructure upgrades and sales and marketing activities.
- Although the flagship Marrickville taproom is trading well and continuing to grow, we won’t rest on our laurels. With a modest investment in modernising its atmosphere, and focusing on more live events and other initiatives, we’ll widen our audience and continue to build our community.
- With some locales still under-serviced when it comes to quality craft venues, Sauce is looking to bring its hospitality experience to new audiences. With many existing venues struggling or looking to exit, we are ready to pounce on the right location, replicating our low-cost, high-margin service model (while never losing sight of customer experience).
Milestones
- Established 2016, rapid early growth.
- Over a dozen gold and silver medals for our core range, plus a coveted champion trophy.
- Key pillar of the Inner West Ale Trail – in the craft beer capital of Australia.
- 15% year-on-year growth in taproom revenue.
- Beer garden touted as one of Sydney’s best.
- 13% monthly growth for Twizzle Cocktails.
- Clear of past ATO debts.
What sets us apart
Big and Bold: Our Flavour First approach means our beers are never boring, and never made to a price. We brew bold expressions of each style – if we don’t love it, we won’t brew it.
Distinctive Taproom Experience: Our Marrickville brewpub is a unique asset that sets us apart from other craft producers. As the only brewery in Sydney with an expansive beer garden, we offer an unmatched outdoor dining and gathering space for consumers to enjoy our products in an inviting, casual setting. The venue's ample size, combined with regular live music programming and a family-friendly atmosphere, have made it a go-to destination for the surrounding community and beer tourists alike.
Cost-competitive in Craft RTS Cocktails: Our unique brewing process replicates true cocktail flavours, while avoiding the higher “alcopops tax” of spirit-based RTDs.
Optimised Balance Sheet: Following the successful completion of our business restructuring in late 2023 and early 2024, Sauce Brewing is stable and ready for the next stage of growth. Notably, we have no past-due liabilities with the ATO, a rarity among small brewers still recovering from the impact of COVID-19 and subsequent inflation pressures.
Investor Rewards
When investing in Sauce Brewing, not only will you help with the growth of the business but you will also receive the below shareholder benefits.
* Bids submitted and funded within 72 hours of the offer opening
The Admin Team
Mike Clarke
Founder & CEO, Director
Christina Manfre
Non-executive Director
Daniel Cox
Finance Manager
The Coalface
Sam Clayman
Head Brewer
Craig Nicolson
National Sales Manager
Martyn Morrice
Venue Manager
Terms of the Offer
Issued Capital
For more detailed information, please read the Capital Structure section of the offer document.
Use of Funds
For more information, please read the Use of Funds section of the offer document.
Company Risks
Sauceco Pty Ltd isa pioneering Australian craft brewery founded in 2016 with a mission of delivering bold, flavour-forward beers that never compromise on quality. As with any growth business, an investment in the Company should be seen as high-risk and speculative. A description of the main risks that may impact their business are listed in the offer document. Investors should read this section carefully before deciding to apply for shares under the Offer. There are also other, more general, risks associated with the Company (for example, cashflow risk, funding risk, competition, key personnel, brand risk or the inability to sell their shares). See the Risk section in the Offer Document for further information.
The Offer is subject to a Maximum Subscription amount of $800,000. If the Maximum Subscription is reached, the Offer will close early. Applications will be treated on a time priority basis and may be subject to scale back, so please fund your application as soon as possible.
RISK WARNING: Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks. You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you.
Even though you have remedies for misleading statements in the replacement offer document or misconduct by the company, you may have difficulty recovering your money. There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
5 DAY COOLING OFF PERIOD: There is a 5 business day cooling off period for retail investors. During this period, you may withdraw your application and receive a full refund into your nominated refund account. Please note: After the 5 day cooling off period has expired, you will be unable to withdraw your application. More information here.
ONMARKET FEES: Upon successful completion of the Offer, a maximum fee of 6.0% of the funds raised will be paid to OnMarket by the Company.
ONMARKET INTERESTS: OnMarket and its associates may be participating in this offer.
ONMARKET INTERESTS AND AMOUNTS SUBJECT TO COOLING OFF: The funding bar displayed under each crowd funding offer may include applications where payments are yet to be made and amounts that are subject to the cooling off period.
Section 734(6) disclosure: The issuer of the securities is Sauceco Pty Ltd 609 051 952. The securities to be issued are fully-paid ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above)
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Question time
We'd love to answer your questions, we'll have one of the OnMarket team or the company representative of the offer get back to you asap. So ask away ...
Really struggling to see the value in this. It seems to say that potential shareholders can't actually attend the AGM/party at the end of the year unless they buy at least four parcels? Surely not?
Daniel C (OnMarket member) on 24/06/2024I'm also struggling to see the value of a 10% discount from a $2500 investment when there are competing breweries in the inner west that offer the same at 10% of the investment?
Thanks Daniel.
Mike C (Sauce Brewing Co (Sauceco Pty Ltd) representative) replied to Daniel C on 24/06/2024I guess it is up to individual investors to decide if the benefits are worthwhile for them.
The annual shareholder party is something we came up with because we received feedback from potential investors that they had invested in other CSF offers, and never heard anything from the company after the first year. So the get together would be an opportunity to meet our team, get an update on the business, and mingle with other shareholders. We'd be offering an all inclusive drinks package for a nominal ticket price. Those who have invested more in the business would receive a number of free tickets, as per the rewards table.
So I see that the company had a restructure of its accounts, why was this? Also you list what the money will be spent on, to me your asking for money to upgrade your beer garden. What is in it for me, besides your rewards. What returns will I see in my bank account and how long will this take. Or are you asking for funds to fix up your business with nothing to come back. The Craft Beer industry is on its knees at the moment with very few micro breweries surviving the crippling taxes that are imposed on you.
Jason W (OnMarket member) on 05/07/2024Hi Jason, a fair chunk of the money raised is going towards growth activities (sales, marketing, equipment upgrades, additional location), so no it's not just an upgrade of the beer garden. The short term benefits are of course the discounts and rewards, which can add up to quite a bit depending on your patronage. The medium to long term prospects for a larger return or exit are, like all businesses large and small, potentially greater, but of course not guaran teed.
Mike C (Sauce Brewing Co (Sauceco Pty Ltd) representative) replied to Jason W on 05/07/2024You are somewhat correct re the industry at large experiencing "challenging times", but we have gone to great lengths to de-risk the business and set it up for success. i.e. we're not just sitting around hoping for the best! I've put a significant amount of blood, sweat and personal funds into the business of late in order to safeguard its future.
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