LOCAL INVESTORS BELLY UP TO BREWERIES TO BUILD COMMUNITY
“Craft breweries, moreso than any other industry, should be fundamentally community-centric and focused on local relationships in both customer base and purveyors,” according to Kyle DeWitt.
He should know. DeWitt is the co-founder of Tecumseh Brewing Co. which, in 2014, was the first Michigan business to take advantage of the MILE Act.
DeWitt used $175,000 in gap funding from 21 community investors to open the doors and turn on the kegs at his brewery.
“As we close out our fundraising process, we have been able to tap into the same resources to pursue a potential expansion in town,” he said. “So far, we have almost enough funds pledged to cover the proposed expansion, and the bulk of these relationships either stem from our fundraiser, or as a result of people hearing about the success of it.”
Similarly, investment crowdfunding enabled Earthen Ales to diversify its funding sources. The Traverse City craft brewery celebrated its two-year anniversary in December 2018.
“This diversity provides a flexibility that can be helpful in the first few years of a new business,” said Jamie Kidwell-Brix, Earthen Ales co-founder. “Crowdfunding was also a tool to build our brand and community before opening the doors.”
In an era where the collapse of big industry has left many municipalities in tough situations, the return to local investments can be empowering. Directing investment to projects that are local or that people have a personal connection to is valuable to the economy and the self-esteem of a community.
And it’s pretty clear that people are connected with beer.