4 by 4 Brewing scraps crowdfunding effort

After announcing in July it was testing the waters for a crowdfunding effort as it sought expansion opportunities, Springfield-based 4 by 4 Brewing Co. LLC has chosen to scrap the plan.

The company announced the decision in an Aug. 28 Facebook post. 

“After careful consideration, we’ve decided not to move forward with our crowdfunding campaign on StartEngine,” 4 by 4 officials said in the post. “We’re so grateful for the excitement and support you showed during the early phases of this idea. Your encouragement means the world to us, and it reminds us how strong and special our community really is.”

The decision follows the company pointing potential investors to a StartEngine page, noting as 4 by 4 “has scalable production capacity and a proven taproom model, we aim to grow into new markets while deepening our existing local roots.”

Co-owner and Chief Financial Officer Derek Shimeall told Springfield Business Journal in July that reservations for potential investors were being accepted on the StartEngine page in order to determine interest and if there’s enough demand to be a viable option for the company’s future expansion. He said July 14 that the company was halfway to its $124,000 reservation goal – a total established by the U.S. Securities and Exchange Commission. 

“If we do hit that $124,000 reservation amount within 30 days, then the SEC and StartEngine platform will allow us to move forward with going into the actual sale of shares and investment opportunities,” he previously told SBJ.

According to the StartEngine page, the reservation total was $133,639. Shimeall and other company officials didn’t return messages seeking additional comment about the crowdfunding decision by deadline. 

“While the engagement and amount of interest we received was encouraging, it wasn’t quite at the level we had hoped for,” 4 by 4 officials said in the Facebook post, adding the path currently isn’t the right fit for the brewery. “Because of that, we believe it’s in the best interest of everyone – our community, our supporters and our team – to pause this effort and refocus our energy on continuing to grow 4 By 4 Brewing the best way we know how: together, right here at home.”

Brewery officials said in July that 4 by 4 was looking to expand its brand as a craft beverage company instead of just a craft brewery. Shimeall said the company has changed its taproom model “pretty significantly already over the last six to nine months, which led to adding slushies, adding batched cocktails, adding an extreme amount of NA offerings, adding pump flavors with water and/or seltzers and pump flavors into beers.”

He added, “What we found was people want beverage options. They don’t just want beer. So, we’ve acknowledged this, and we’ve really been transforming into a beverage company model that is still making beer.”

The brewing company is still largely driven by beer, Shimeall said, estimating it comprises about 75% of drink sales. However, the brewery’s drink menu also features numerous other options, including wine, canned alcoholic seltzer, slushies – both alcoholic and nonalcoholic – and craft cocktails, such as blueberry lavender spritz and watermelon mojito.

The company operates locations in Springfield and Nixa. Its first location opened in Galloway Village in 2017, followed by its Nixa brewery in 2023 at 9903 Sawgrass Ave., adjacent to Fremont Hills Country Club.

According to the StartEngine website, 4 by 4 increased distribution 17% year over year in 2024 and only has 20% of brewing capacity utilized.

Declining to disclose 2024 revenue, Shimeall said in July that 4 by 4 produced around 2,200 barrels last year, essentially the same as 2023 production.

He said the company is trending toward 2,400 barrels this year.