Following the name change, the company will open a new brewery, taproom and will begin to package its beers in a 330ml format.
Mad Squirrel spokesman Tim Hickford said: “Mad Squirrel has been a sub-brand of ours since 2014.
"Although we are proud of everything we have achieved as Red Squirrel, over the past couple of years our brewing style, company vision and aspirations have organically developed to the point where we feel our previous name is not truly representative of our company."
Hickford continued: “We have therefore retired the Red Squirrel name, alongside all other sub-brands, and streamlined our image.”
Up until now, the business had operated under two brands – of the same name – comprising the brewery, and its bottle shops and tap rooms.
There are already four bars and bottle shops in operation in Chesham, Amersham, High Wycombe, all in Buckinghamshire; and Berkhamsted, Hertfordshire; with plans in place to expand the concept.
The new brewery will be upgraded to a 9,000sq ft site and will be able to produce 1.2m pints a year, which equates to 700 more barrels than the existing brewery.
A fifth tap room will open in the new brewery, while plans to open a sixth tap room and bottle shop have already been given the go ahead.
The business, which was founded in 2010, grew sales by 26% last year and is on target to grow revenue to £2m, according to Hickford.
The company will launch a round of equity crowdfunding later this week (22 February) to accelerate its growth.
Last year, the company overreached its £500,000 crowdfunding target by more than £150,000.