AMDP: Brewgooder

 🗓️ Date: March 5, 2024

To: CEO of Anima Mundi Development Partners (AMDP)
👤 From: Tina Nguyen, Research and Development Department
📧 Subject: Investment Proposal: Consideration of Brewgooder

After careful consideration and thorough market analysis, AMDP should invest in Brewgooder, a craft beer company that invests its profits from beer sales into clean water projects around the world. While it was challenging finding tangible data for Brewgooder from external outlets, the brewery has high potential and has persistently maintained its profit, growth, and social impact through innovative means. 

This memo contains:

  • Summary of AMDP’s investment criterias 

  • Overview of Brewgooder’s background, company claims, and financial data

  • Expert opinions on Brewgooder’s social impact

  • Investment proposal

I. Goals 

In alignment with AMDP's mission, it's crucial to grasp key concepts shaping our investment criteria:



Triple Bottom Line

  • Definition: A company’s ability to balance its successes in profit, people, and the planet. (Harvard Business School). 

  • Importance: A firm solely focusing on the standard “bottom line” of profit is not enough. Prioritizing the triple bottom line to positively impact people and the planet drives long-term business success, resilience, and stakeholder trust (Harvard Business School).


Corporate Social Responsibility (CSR)

  • Definition: The commitment of businesses to operate ethically and responsibly, taking into account  their environmental, ethical, philanthropic, and economic impacts (Chicago Booth School of Business). 

  • Importance: CSR enhances reputation, builds stakeholder relationships, and gains competitive advantage. It reflects a commitment to sustainable development and responsible stewardship of resources for current and future generations (Austin Publishing Group). 

Social Enterprise

  • Definition: Companies whose founding objective is to address social or environmental issues (Harvard Business Review).

  • Importance: Most social enterprises operate at the intersection of social or environmental challenges and market opportunities, so they are able to offer innovative solutions to pressing issues while still prioritizing revenue (ImpactGarden). 


Carbon Footprint

  • Definition: Total amount of carbon dioxide emitted by human activities that can have severe climate change impacts (Environmental Protection Agency).

  • Importance: A large carbon footprint can result in severe environmental impacts (including air pollution and compromised water sources) which lead to adverse health effects for humans. Reducing carbon footprint in businesses is crucial for environmental responsibility, regulatory compliance, and even market differentiation (Columbia Business School).

  • Measure: Carbon footprint is measured through assessing total greenhouse gas emissions from direct and indirect sources in activities. Collecting data on fuel consumption, energy usage, and production activities can be used to estimate total emissions produced (PwC).

II. Brewgooder As A Company:

Background and Company Claims

Brewgooder, co-founded in 2016 by Alan Mahon and James Hughes, is a social enterprise beer company committed to providing clean water access to communities in need worldwide. Inspired by Mahon's experience in Nepal, where he contracted a parasite from drinking contaminated water, the company introduced the "clean water lager" model, promising a donation of clean water for every can sold. Brewgooder funds these projects with 100% of their proceeds, providing 200M+ liters of water to 15 developing countries and more than 170,000 lives. This follows AMDP’s social enterprise standards. Regularly collaborating with other brands, they have garnered support from consumers and the craft beer industry alike with their quality brews and tangible support towards combating global water poverty (Brewgooder). In a 2022 collaboration with Passenger, a sustainable outdoor clothing brand, the two committed to planting one tree for every can of beer sold, coinciding with AMDP’s standards for corporate social responsibility and reducing carbon emissions (Brewgooder). Along with providing clean water and regrowing trees, a few of Brewgooder’s other goals include:

  • Water sanitation

  • Zero hunger

  • Reduced inequalities

  • Climate action 

While ambitious, impact data on these collaborations and third party sources would be more convincing. 


Financial Data 

Financial information regarding Brewgooder’s financial state is inconclusive. Financial metrics were not public, so a more creative approach was taken to analyze its performance. This section will primarily focus on the beer industry as a whole and Brewgooder’s collaborations. 


  • Brewgooder has raised over $662M in investor funding to date (Tracxn). 

    • This indicates investor’s continued confidence in Brewgooder’s potential.

    • However, this is not sufficient in detailing their performance without information on how these funds have been used. 


  • The global beer market is valued at $800B in 2023 and is expected to grow to $1000B by 2030 (Fortune Business Insights).

    •  Beer has gained immense popularity amongst millennials and Gen Z due to innovative drink flavors. Both of these generations place the most value on sustainability, ethics, and social responsibility (Forbes).

    • This is excellent news for Brewgooder, a social enterprise prioritizing these values. As these generations lead the demand for socially responsible products, Brewgooder is well-positioned to thrive in the market. 


  • Brewgooder is projected to increase sales by 200% in 2024 through its partnership with two prominent Scottish craft brewers—Fierce Brewing and Williams Brothers (Scottsman). 

    • This collaboration will put Brewgooder’s beers in stores UK-wide, further growing their customer base and reach. 

    • Fierce Brewing and Williams Brothers both invested in Brewgooder to enhance their brewing facilities, indicating a significant commitment to the partnership. 


Despite not having Brewgooder’s financial data, beer market growth and the support from industry leaders suggest that the company is strategically positioned for success. As the global beer market continues to expand and consumers increasingly prioritize sustainability, ethics, and social responsibility, Brewgooder’s focus aligns perfectly with market trends, positioning the company for continued growth and impact.

III. Critical Appraisal from Industry Sources:

Brewgooder is a small company with less than 50 employees, making it challenging to find outside sources that address Brewgooder’s claims and practices. However, the following expert opinions provide general critical appraisal that can be applied to the company as a whole.


Opinion 1 

In an interview with The Drinks Business, Matt Howard, the head of insolvency and recovery at Price Bailey—an accountancy and business advisory firm—expressed concern over the “significant number of business failures” in the industry, noting that “growth in brewery startups has slowed in recent years”. Given Brewgooder's status as a small company, it is vulnerable to the challenges faced by small breweries, which often "struggle to turn a profit for a few years," especially amid "higher borrowing and raw ingredient costs, coupled with weakening consumer demand". As a social enterprise, Brewgooder must balance its commitment to positive impact with the need for profitability. Without sustainable profits, the company's practice of using proceeds to fund clean water projects could be jeopardized.


Opinion 2

In alignment with their sustainable water goals, Brewgooder pledges to “maintain a sustainable model” when it comes to water usage in their breweries. However, this is difficult without the use of expensive machinery, which may be unaffordable to the small company. Currently, the breweries leverage Scotland’s abundant local water supply, but this practice may not be replicable as the company expands into new regions (Ruzicka). Viravix, a leading food engineering consultant group, states that breweries “cannot afford to be dependent on local natural conditions” and most breweries implement a costly, wasteful water conditioning process. If Brewgooder ever hopes to scale to other regions, the large cost from conditioning, cooling, washing, transporting, and brewing the beer might act as a strong financial barrier (Viravix).

IV. Investment Proposal:

Considering Brewgooder's commitment to social impact and its innovative approach within the brewing industry, it is worth considering investment. However, caution is advised, as critiques regarding market competitiveness and scalability should be thoroughly evaluated.

In conclusion, I propose that AMDP carefully considers the potential investment in Brewgooder, weighing both its claimed commitments to social responsibility and environmental sustainability against the critiques offered by industry sources. While Brewgooder is a small company now, its work and collaboration with industry leaders highlights its potential for growth and impact in the market. 

Thank you for considering this proposal. Should you require further information or clarification, please do not hesitate to contact me.

Warm regards,

Tina Nguyen
Research and Development Department

Works Cited

“Climate Change Terms.” United States Environmental Protection Agency, sor.epa.gov/sor_internet/registry/termreg/searchandretrieve/glossariesandkeywordlists/search.do?details=&vocabName=Glossary%20Climate%20Change%20Terms&filterTerm=carbon%20footprint&checkedAcronym=false&checkedTerm=false&hasDefinitions=false&filterTerm=carbon%20footprint&filterMatchCriteria=Contains#:~:text=Definition%3A%20The%20total%20amount%20of,building%2C%20organization%2C%20or%20company. 

“How Businesses Can Lead the Charge against Climate Change.” Columbia Business School | Executive Education, execed.business.columbia.edu/how-businesses-can-lead-charge-against-climate-change. Accessed 8 Mar. 2024. 

“The Triple Bottom Line: What It Is & Why It’s Important.” Harvard Business School, 8 Dec. 2020, online.hbs.edu/blog/post/what-is-the-triple-bottom-line. 

“Carbon Footprint Calculation.” PwC, www.pwc.com/sk/en/environmental-social-and-corporate-governance-esg/measuring-environmental-impact/carbon-footprint-calculation.html. Accessed 8 Mar. 2024. 

P, Ndemena, and Qutieshat A. “The Relationship of Corporate Social Responsibility in Gaining Competitive Advantage or Contributing to Societal Benefits.” Austin Journal of Business Administration and Management, Austin Publishing Group, 10 Oct. 2022, austinpublishinggroup.com/business-administration-and-management/fulltext/ajbam-v6-id1052.php#:~:text=In%20the%20business%20world%2C%20implementing,reputation%20at%20the%20same%20time. 

“Social Innovation & Social Entrepreneurship.” Impact Garden, 26 Nov. 2019, impactgarden.org/social-innovation/. 

“Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review.” The University of Chicago Booth School of Business, www.chicagobooth.edu/research/rustandy/social-impact-research/research-papers/2019/adoption-of-csr-and-sustainability-reporting-standards-economic-analysis-and-review. Accessed 8 Mar. 2024. 

“Two Keys to Sustainable Social Enterprise.” Harvard Business Review, 20 Apr. 2015, hbr.org/2015/05/two-keys-to-sustainable-social-enterprise. 

“Brewgooder Company Profile.” Tracxn, 4 Mar. 2024, https://tracxn.com/d/companies/brewgooder/__NSvl5UBpJHr1xwbKt6nX5MyuUAB406KOyoq3qMrGVII

Contributor, Deloitte. “For Millennials and Gen z, Social Issues Are Top of Mind-Here’s How Organizations Can Drive Meaningful Change.” Forbes, Forbes Magazine, 22 July 2021, www.forbes.com/sites/deloitte/2021/07/22/for-millennials-and-gen-zs-social-issues-are-top-of-mind-heres-how-organizations-can-drive-meaningful-change/?sh=1f6969e0450c. 

“Ethical Beer Brand Brewgooder Seals Contract Deals with Two Top Scots Craft Brewers.” The Scotsman, 8 Feb. 2022, www.scotsman.com/business/ethical-beer-brand-brewgooder-seals-deals-with-two-top-scots-craft-brewers-3559145. 

“The Brewgooder Foundation.” Brewgooder, www.brewgooder.com/pages/the-brewgooder-foundation. Accessed 8 Mar. 2024. 

Mason, Jessica. “Craft Brewery Closures Reflect Impact of Rising Cost Pressures.” The Drinks Business, 30 Nov. 2023, www.thedrinksbusiness.com/2023/11/craft-brewery-closures-reflect-impact-of-rising-cost-pressures/. 

Ruzicka Angelique. “A beer-ly good cause!” This is Money UK, 22 November 2019, https://www.thisismoney.co.uk/money/smallbusiness/article-7681713/Brewgooder-founder-aims-help-Malawi-clean-drinking-water.html.

“How to reduce water usage at the place of beer production.” Viravix Brewery Engineering, https://viravix.com/blog/how-to-reduce-water-consumption-at-the-place-of-beer-production.

Comments

Post a Comment

Popular posts from this blog

World We Dare to Imagine Part 1

Western values are inherently quite individualistic. Evident in our history and our own experiences,  capitalism—a cornerstone of our society—perpetuates continued values of individualism. However, as long as it continues to foster innovation, it’s impossible to separate these two ideals.  However, this is most definitely not true for the rest of the world. I’ve reflected on Jacqueline Novogratz’s The Blue Sweater, and it’s clear to me that strong communities with impeccable resilience still exist to support each other when no one else will. The same sense of hyper individualism does not exist all across the world. The issue is that when addressing global issues, these communities that are directly affected cannot be the only ones engaged.  In imagining making the world a better place, I see us students at the forefront. Not only educating ourselves on these issues to move towards a collective shift for community values, but taking that leap needed to make change. There's...
Read more