E-Malt.com News article: USA, WI: A successful crowdfunding campaign sets MobCraft at top

MobCraft Beer, the Wisconsin startup that brews a different beer each month based on online voting, moved closer this week to opening its own production facility, Xconomy reported on April 7th.

Fresh off completing one of the state’s first equity crowdfunding campaigns, the Madison-based brewer has proposed leasing a 13,000-square-foot building in Milwaukee’s Walker’s Point neighborhood that would significantly increase its brewing capabilities, co-founder Henry Schwartz says.

If MobCraft secures the Milwaukee space, its brewing capacity will immediately jump to 3,600 barrels annually, a number that could eventually reach 25,000 barrels, Schwartz says.

First, the city of Milwaukee must approve a zoning change to allow for heavy manufacturing in the building at 505 S. Fifth St, Schwartz says.

More importantly, MobCraft must pull together $2.06 million in financing to launch the brewery. The company was one of the first to take advantage of Wisconsin’s new law permitting equity crowdfunding—selling company shares online to state residents who normally wouldn’t have the means to invest in startups. A few months ago, MobCraft raised north of $68,000 from about 50 individuals through the campaign on Milwaukee-based CraftFund’s website.

MobCraft has also applied for a loan from the Wisconsin Economic Development Corp. that would cover a “significant part” of the $2 million needed for the brewery, Schwartz says. Other funding options include the Milwaukee Economic Development Corp., the U.S. Small Business Administration, and additional private investments.

If all goes according to plan, MobCraft will be brewing in the Milwaukee facility by the end of the year, Schwartz says.

MobCraft also scouted Madison for its first brewery, but given the timeline it set, the Milwaukee location “was just the best fit,” Schwartz says.

If MobCraft opens a brewery in Walker’s Point, it would join a budding craft beer and spirits scene, with Milwaukee Brewing Co., Brenner Brewing Co., Great Lakes Distillery, and Central Standard Craft Distillery already operating within a half-mile of MobCraft’s proposed location. Like those businesses, MobCraft intends to open up the brewery for tours and tastings, Schwartz says.

One of its next projects is a trial run of selling two of its most popular beers, Batshit Crazy and Hop Gose The Grapefruit, in 16-ounce cans, Schwartz says.


10 April, 2015