Craft Gin Club nears 75% of £2m fundraising target

Subscription service the Craft Gin Club has raised almost 75% of its £2 million (US$2.6m) crowdfunding target, which will enable the business to achieve its expansion plans.

The Craft Gin Club’s boxes come with a 700ml bottle of gin, mixers, snacks and a magazine

The UK-based business launched its inaugural Gin Bond fundraising platform on 31 October 2019, which will close on 13 December. To date, the investment drive has raised nearly £1.5m (US$1.97m) – 73% of its goal.

Proceeds from the Gin Bond will enable the Craft Gin Club to improve its customer offering and benefit from “some clear market opportunities”. The firm has identified three key areas for moving its business forward: marketing activity growth and optimisation, product and member rewards development, and building on distiller support activities.

The Gin Bond offers consumers the chance to invest in the firm in return for either annual interest or gin boxes.

Backers can choose between three different options for the Gin Bond, investing in either the Cash Bond, the Gin Box Bond, or a combination of the two.

The Cash Bond is a four-year initial fixed-term mini-bond offering a gross interest rate of 8% per annum for investments from £500 (US$656).

The Gin Box Bond offers a 12% gross interest rate per annum in the form of a Craft Gin Club annual membership for the lifetime of the bond. It is available at three investment levels: £5,000 (US$6,565) for a monthly membership; £2,500 (US$3,280) for a bi-monthly membership; or £1,666 (US$2,189) for a quarterly membership.

Investors will receive Gin of the Month boxes filled with a 700ml bottle of gin, tailored mixers, cocktail garnishes, snacks and a magazine.

Backers offering more than £10,000 (US$13,130) will also receive a Craft Gin Club Black Card, entitling holders to a range of exclusive benefits including a gin concierge service, limited edition bottles of gin and VIP invites to gin tastings and events.

The Craft Gin Club has seen its subscriber base grow to more than 60,000 members, with more than 800,000 gin boxes sent out since its launch in 2015.

The business has experienced “steady growth” with an average annual sales growth of 180% and a yearly turnover of £10.1m (US$13.2m) in 2018.

‘Future success’

The Craft Gin Club secured an investment of £75,000 (US$98,500) on BBC television series Dragons’ Den in 2016. Co-founders Jon Hulme and John Burke received the funding from London Cocktail Club co-founder and resident ‘dragon’ Sarah Willingham in return for a 12.5% stake in their business.

“When someone walks into the den, you have no idea what to expect, but when I met Craft Gin Club and heard their pitch, I knew that I wanted to invest,” explained Willingham.

“And wow, have they exceeded my expectations. When they walked through the door three years ago they had less than 5,000 members – today we have over 60,000 members. And I still say this today: I think that this could be one of the most successful businesses to come out of the den.”

Hulme, managing director of Craft Gin Club, said: “We’ve been overwhelmed by the response to the Gin Bond so far. Not only have our members and other gin fans been investing in their hundreds, but they’re as excited as we are by this opportunity to share in our future success.

“Our goal today remains the same as ever: to offer our members the best possible gin experiences, including some which money can’t buy. We’re so excited about the opportunities this Gin Bond opens up for us to build on this offering and spread the joy of great gin even further.”