Carlow Craft Brewery to entice investors through tax scheme

Carlow Craft Brewery, the company behind the O'Hara's range of craft beers, is looking to tap wealthy clients of Dublin stockbroking firms to raise up to €2.5 million for a new brewhouse under a tax-efficient business expansion scheme.

The firm, which was founded almost two decades ago and also trades as the Carlow Brewing Company, is looking to raise funds under the State’s employment and investment incentive scheme.

The cash raised will be used to "add capacity and operating efficiencies", according to a note sent recently to clients of Cantor Fitzgerald. "The funds raised will be used to expand the company's brewing and packaging facilities which are located in Bagenalstown, Co Carlow," the note said.

Fundraising drive

Séamus O’Hara, the managing director, is expected to meet clients of Cantor Fitzgerald later this month as part of the fundraising drive. He could not be reached at the company’s office immediately prior to publication.

The Irish indigenous brewing sector is booming as consumers drink more craft beers and companies make inroads into export markets. Carlow Brewing Company, which employs about 30 staff, sells its range of beers in about 25 countries.

The company made profits of about €600,000 in the year to the end of March 2014, according to its most recently filed set of abridged accounts.

The employment and investment incentive scheme allows investors to get tax relief on investments, although there is no tax advantage for the company raising the cash. The scheme targets SMEs, although hotels and property developers are among those excluded. The scheme was expanded for three years by the Government in the budget.