2. Overview
Goals:
Revitalize historic Dick Brothers Brewery with
microbrewery
Create a cooperative brewing environment for
homebrewers to test recipes
Partner with an upcoming restaurant to pair craft beer
with menu items
Partner with a larger contract brewer to proliferate the
Dick Brother brand into the retail market
Introduce German / International Public Market to
promote Farm to Table and Farm to Restaurant programs
Market “Throwback Beer” service, recreating historic labels
and recipes
Become a “test bed” for new brewing technologies,
innovations, and alternate brewing processes
3. Problem Description
Small brewers are unique in the more personal nature of the business and the
unique history behind their brews. It is a sense of community that compels small
brewers to higher standards, as even small changes in the clientele can have
massive impacts on their ability to survive collectively as an industry, and
individually as businesses.
The microbrewer is faced with the problem of distributing the final product,
unlike the brewpub operator who has a captive market.
Illinois allows self distribution. Regulations vary from state to state. Some states
allow you to sell your brews directly to retailers, while others require you to go
through a distributor. Obviously, if you need to use a distributor, you'd better
establish that relationship early on
The three-tiered system favors larger established breweries. The three-tier
system of alcohol distribution is the system for distributing alcoholic beverages
set up in the United States after the repeal of Prohibition. The three tiers are
producers, distributors, and retailers. The basic structure of the system is that
producers can sell their products only to wholesale distributors who then sell to
retailers, and only retailers may sell to consumers. Producers include brewers,
wine makers, distillers and importers. Entrance and success for small brewers is
hard for the small brewer.
No single American company is focused on exporting / expanding the market for
craft beer in foreign markets.
4. Venture History
1995 - First homebrew batch conducted in Quincy, IL basement using a sock filter
1996 - Entered first homebrew competition at Germanfest in South Park
1998 – Attended homebrew classes at the Copper Dragon in Carbondale, IL and
equipment procurement at Southern Illinois University
1998 - First all grain batch
1999 - “Beertron” term first coined with vision of automated RIMS
2002 - Design and assembly starts on “Beertron”, an automated 3 keg home
brewery
January 2, 2005 “Beertron” comes to life and produces first autonomous batch of
homebrew
2007 - Genesis of the “Brewtronix System” and business plan at venture capital
classes at Kansas University and the University of Maryland’s Technology
Enterprise Institute and Entrepreneurial office, SCORE and Southern Maryland
Small Business Development Center
2010 - Joined the Hollywood Hop Heads
2012 – Started reinvigoration of Dick Brothers Brewing
2012/2013 - Craft Beer Cuisine Adventure Charters conducts research in Lesser
Antilles
2013 - Filed LLC paperwork with state of Illinois
5. Recent Illinois Legislation
Illinois Craft Brewers Guild recently won a hard-fought battle to restore the
right of small craft brewers to self-distribute their beer under Illinois law
A proposed change to the Craft Brewer’s License would allow small breweries
to produce up to 200,000 barrels, increased from 15,000. A compromise was
made to increase the production cap to 30,000 barrels.
Governor Quinn signed HB630 into law July 5, 2013
Illinois can LEGALLY have Homebrew at private Club meetings
LEGALLY take our homebrew to private picnics
Homebrew is BACK in the Festivals!
6. Dick Brothers Brewing Business Plan
Company Seeded Ready for Startup
Business Planning complete
Logo / Label design complete
Initial marketing started
Initial merchandizing started
Investors being secured
12 recipes brewed, evaluated, and revised over 5 year period
“Dick Brothers Brewing” LLC documentation in place
Procurement
1 to 5 BBL Brewing System
Brewing Supplies
Licenses, permits, and insurance
Facility Construction / Retrofitting
Drainage trench installation
Installation of Brewing Vessels
Ventilation of Mash Tun and Boiler
Connect to Fridge or Glycol Cooling system
7. Dick Brothers Brewing Management Team
David Jones - Director, Brewmaster, Manager – 11 years program Analyst/Manager and
technical lead. B.S. Mechanical Engineering, Southern Illinois University, Masters in
Engineering, Energy and the Environment, University of Maryland. 17 years experience in
homebrewing and 7 years experience in Entrepreneurship and company development.
Mike Shull – Historian. 10 years experience history teaching and community relations
Josh Klitz – Marketing and distribution. Hot Sauce king of Tri-state area. 5 years experience
with marketing and proliferating Crawdad’s Classic Hot Sauce and 314 Hot Sauce in St. Louis
Vacant: Financial Manager and fund raising –
Todd Buckley: Executive Chef. 10 years culinary experience
Paul Nelson – Graphic Artist and Marketing. 5 years experience as creative director with
http://studiouprising.com/
Beth Jones and Jason Snell – Training Program, 5 years experience Municipal Training
Systems
Jim Aubuchon – Product Representative, Product Specialist
10. Layout 1 BBL Brewing System
12’
3’
FV1
FV2
FV3
FV = Fermentation Vessel
MT = Mash Tun
Blue = Cooled or Refrigerated
Red = Heated and Hooded or Ventilated
Grain milling done in kitchen during off hours
Storage for brewing supplies and equipment
within existing spaces
Affixed and
close to
Fridge
FV4
Boiler
9’
MT
4’
Potentially
Removable
11. Dick Brothers Building
German/International “Public Market”:
•Delicatessen and bakeries
•Specialty meats and cheeses
•Fresh fruit and vegetables
•Multiple food vendors and retail food
distributors
Layout cohesive for:
•3 business units
•Enter at tasting room/bar, walk through
art gallery to dinner
•Food truck bays
•Art gallery and art studio space
•Brewery tours and tourism
•Overflow and large event seating
•Utilization of existing spring water
•Expansion once capital is flowing
12. German/International Public Market
Promotes the growing enclaves of ethnic communities and their cultures: Asian,
Latin American, Thai, Vietnamese, Pilipino, etc.
Hy-Vee, County Market, Butcher Block, Kohl Foods delicatessen: specialty sausages
and meats...sauerbraten, schnitzel, schwarzwurst, specialty cheeses
Underbrink’s , Krazy Cakes, bakeries: Biertreberbrot (spent grain bread), soft
pretzels, German deserts
Consolidate/relocate farmers market from Washington Square and Quincy Mall
Multiple vendors under a shared leased space… equates to multiple investors
Promotes Illinois Stewardship Alliance’s Farm To Table and Farm to Restaurant
programs
Check out what Engrained Brewing, in Springfield is doing with Farm to Table:
http://www.engrainedbrewing.com/engrained-brewpub-blog/the-farm-to-table-challenge
13. Advantages and Benefits
Reduced time to market with structured business in
place
Increase food sales and total sales from appeal of
craft beer
Potential for more outward catering opportunities
and sales at craft beer festivals with a food / beer
truck
More merchandizing opportunities and synergy
between Dick Brothers Brewing and local
restaurants
Unique restaurant specific craft beer brand creation
with transferable rights to restaurant owners
Food and Craft Beer pairing events and beer paired
menu items
Beer festivals and tourism
14. Why Our Beer is Better
Recreation of German brewing styles and techniques now extinct
Autonomous temperature controls and triple decoction mash method allow us to
precisely and repeatably brew all types and styles of beer
We can recreate any style of beer... with consistency.
Our mash temperature control technology allows us to make precision mash
conversions... i.e. a dry German Pilsner vs. a sweet Munich Helles
We operate a self sufficient green brew house and are actually able to pump
electricity back into the grid
By utilizing solar water heaters we are able to reduce electrical/gas water heating
demands and increase the efficiency of our Hybrid Brewing Energy System
By burning a portion of our spent grain biofuel we are able to power our entire brewing
operations thus decreasing green house gases and our electrical needs
When steam demands are idle we are able to divert energy to powering a microturbine
and pump energy back into the grid
By utilizing solar photovoltaic arrays and battery technology we are able to pump energy
back into the grid while the brewing operation is offline
By filtering aqueous brewery waste with our organic pressed spent grain filters we
can reduce pollution into the water table
We use the freshest of local ingredients
15. Other Production Lines and Profit Centers
Contracted “throwback brews” recipe research, design,
and development for pre-prohibition historic breweries
Photomosaic bottle cap art (marketed to World of Beer
franchises)
Stressed bottle cap prints
Craft Beer Cuisine tailgators and brewery tours from RV
or food/beer party truck
Food and Beer Truck party catering service
Merchandizing: T-shirts, can cozies, wooden nickels,
glassware, barware, etc.
Green roof hop farm
Brewery hostel accommodations and tour excursions
Small Hybrid Brewery Energy System
Brewing Equipment Test and Evaluation service
16. Beer-Powered Brewery Saves $450,000 A Year, Feb 4th 2013 press release
• Alaska Brewing Company purchased a $1.8 million furnace that burns the company's spent grain — the
waste accumulated from the brewing process — into steam which powers the majority of the brewery's
operations. Designers estimates that the spent grain steam boiler will offset the company's yearly energy
costs by 70 percent. Awarded nearly $500,000 in a grant from the federal Rural Energy for America
Program. Alaskan Brewing Co. makes about 150,000 barrels of beer a year
• Dick Brothers Brewing plans to build a smaller, less expensive, high tech version marketable to
the 2,386 smaller brewpub and microbreweries
US Breweries Operating as of June 2013
Brewpubs = 1,165
Microbreweries = 1,221
Regional Craft Breweries = 97
Total US Craft Breweries = 2,483
17. Patentable and Licensable Technology: Hybrid Brewing Energy
Advantages:
•Green Energy and Energy Efficient
•Energy Management and Thermal Management
•Scalable to brewing system
•Utilizes existing hybrid technology in new applications
•Cost efficient for high load brewing days
•Less development time with existing technologies
•Venture capitalist express interest
Prius
•Quincy Manufacturable
Drive train
•Spent grain into energy
$1.4M raised to start this contract brewing company in DC area
Control System used on 100
BBL system. Proven Technology.
Same technology as original
“Brewtronix”
Prius Energy
management
system
Micro
Steam
Turbine
PLC
Logic
Control
HP
Steam
To
Boiler
Double
55 gal
wood
stove
w/
copper
tubing
jackets
LP
Steam
Radiant
Heat
To
Mash
Tun
Hot
Water
Tank
Cold
Spring
Water
Original
“Brewtronix”
System
Prototype
Design
18. Patentable and Licensable Technology: Mash Filter Press
Alaska Brewing Company was the first craft brewery in the United States to employ this
Belgian-based brewing technology, which allows them to reduce the amount of water, malt
and hops needed to make beer, while maintaining high quality and consistency. In one year,
the mash filter pressed nearly 2 million fewer gallons of water and 6 percent less malt to
make the same amount of beer as our traditional brewing process. The unique design of the
mash filter press also reduces the moisture content in the spent grains, which further
reduces the energy required to dry the grain before it is transported to farms.
Today about 25% of the world’s beer volume is produced with a Mash Filter Press. More than 20 years ago
when the industrial introduction of the Mash Filter Press took place, only one filter size, was available, mainly
sized for large lager brewers. In 2012 at the Craft Brewing Convention in San Diego, supported by an
increasing demand from the U.S. Craft Brewing market, Meura decided to introduce a smaller Mash Filter
Press suitable for microbreweries.
As a matter of interest, nearly 90% of the beer volume produced in Belgium is produced with the Mash Filter
Press technology.
Utilize Engineering Change Proposal (ECP) process and engineering knowledge base to give Original
Equipment Manufacturers (OEMs) product improvement suggestions based on test and evaluations and
plant/energy efficiency improvements. Improve design by allowing pressed mash to also filter aqueous
sediment from boilers and fermenting vessels to create zero organic aqueous discharge for brew house.
Dick Brother’s brewing processes have been hand pressing mashes and utilizing a mash filter method for
over 4 years.
No American company manufactures a comparable product and the craft brewing industry is just now
catching on… 1 brewery out of 2,483 utilize a Mash Filter Press.
19. Funding Programs
• We are approaching venture capitalists, angels, and IL state grant programs:
• Startups.co, Angels List, Angel Soft, National Venture Capital Association, Funding Post, Et al…
• Illinois Clean Energy Community Foundation
• Solar and Wind Grant Program (minimum $100,000, max $250,000)
• Biogas and Biomass to Energy Grant Program (Up to 50% of project cost, max $500,000)
• Renewable Energy Business Development Program ($250,000 to $500,000)
• Invest Illinois Venture Fund (IIVF)
• Venture capital program seeking to support young, innovative companies, and start-ups that show a high potential for future
growth resulting in the creation of high-paying professional Illinois jobs
• Microloan Program
• Provides very small loans to start-up, newly established, or growing small business concerns.
• Small Business Innovation Research (SBIR) Program
• SBIR programs encourage small firms to undertake scientific research that helps meet Federal R&D objectives, and have high
potential for commercialization if successful
• CAPLines
• CAPLines is the umbrella program under which the SBA helps small businesses meet their short-term and cyclical workingcapital needs
• Small Business Participation Loan Program
• Funds must be used primarily for the purchase of land or buildings, construction or renovation of buildings, and acquisition of
machinery and equipment
• Capital Access Program
• Loan program for for-profit, Illinois businesses that employ 500 employees or less.
• Revolving Line of Credit Program
• This loan permits a company to borrow, repay and re-borrow in accordance with business needs, without applying for a new
loan.
• Participation Loan Program
• The PLP program is designed to work through banks and other conventional lending institutions, to provide subordinate
financial assistance to Illinois small businesses
• Enterprise Zone Participation Loan Program
• Loans for small businesses with fewer than 500 full-time employees, and located within an Illinois designated enterprise zone.
• Employ Illinois Loan
• Loans of up to $1 million may be used to acquire land, purchase equipment, provide working capital, buy inventory or make
capital improvements
• Bootstrapping…
20. Potential Tristate Area Partnerships
Knapheide’s = Food and Beer Truck design
McClean’s = Quincy food
Manchester Tank = CO2 Tanks and Beer Kegs
Midwest Controlled Storage = Beer storage and lagering
US Cooler = Beer coolers for tasting room and beer/food truck
Gully / McNay Transportation = Transport and Export services
Quincy Metal Fabricators = Bottling and canning line machines
Midwest Pattern = Bottle cap jigs
Awerkamp/Quincy Machine & Welding = Brewery Equipment
Maintenance
The Shirt Shack = Merchandizing
Tristate Food Equipment / Kohl’s = Food service equipment
Shortridge Construction = heavy equipment loans and general
contracting
Fierge Auto parts = Hybrid Brewing Energy
Gardner Denver = Hybrid Brewing Energy, Bottling lines
Quincy Compressor = Pressure control systems
Local donors = brewery memorabilia
21. Potential SOMD Prototyping and R&D Partnerships
CTSI = Prototyping and Fabrication
Amelex = Hardware and Software Engineering
Integrated Program Solutions = Program Management and cost analysis
AR Systems, Inc. = Electronics Manufacturing, circuit boards, and wiring diagrams
ARINC Engineering Services = Systems engineering, system design, prototyping, modeling
and simulation
Heron Systems Inc. = Software development and electrical engineering, programming
Triton Metals, Inc. = Precision machine, sheet metal, and job shop
AMEWAS = Systems Engineering, modeling and simulation
Specialty Systems, Inc. = Hardware/Software Engineering, system prototype development
Spiral Technology, Inc. = Modeling and Simulation
DRW Technologies = Automation, electronics, and system design
Pioneering Decisive Solutions, Inc. = Automation, system design, software
DCS Corporation = systems engineering, modeling and simulation
J.F. Taylor = electronic engineering, software systems design, system fabrication
Platform Systems = mechanical design and engineering
Vulcan Engineering and Manufacturing = Precision metal prototypes, fabrication
Westwind Technologies = engineering, prototyping, and fabrication
Compliance Corporation = prototype design and development
28. Adam’s County Craft Beer Market Potential
Adams County
Total Population (2012)
Users % Index
Total Market Potential
67,197
13.19%
8,863
13.19%
4,457
Population age 21 to 50
34,286
Adams County Full Market Potential
$60 per person per year x 5,849 people = $267,420
Growth of the craft brewing industry in 2012 was 15% by volume and 17% by
dollars compared to growth in 2011 of 13% by volume and 15% by dollars
29. Community Impact
Increased jobs (distribution, drivers, marketing, advertising, building maintenance
and preservation, food prep, tourism, brewery tours, etc.
Positive impact on neighborhood improvements. Hiring within the neighborhood
and making improvements on your property could trickle out, thereby improving a
section of town that is currently degrading with increasing crime. Liz Solaro and
Brewery Arts District started the positive push
Increased tourism: Microbreweries attract tourists, and Dick Brothers Brewing
would bring in people who would eat and stay at Quincy
Seeking letters of support from the Quincy Area Convention and Visitors Bureau,
Great River Economic Development Foundation, Chamber of Commerce, Quincy
Historical Society, Historic Quincy Business District, Illinois State Historical
Society, Gardner Museum of Architecture and Design, Quincy Museum, Historical
Society of Quincy and Adams County (their organizations can also help with
branding and providing historic photos)
Historical themed beer brands: Lincoln Douglas Debate Pale Ale, Mississippi
Steamboat Amber Ale, Quincy Select German Pilsner, Germantown Hefeweizen ,
Munich Oktoberfest, South Side Vienna Lager
Increased communication and travel to Herford Germany (Quincy’s sister city) to
research historic brewing traditions and Ruppertsberg, Thein-Pfalz, Bavaria where
the three Dick brothers originally hailed
30. Marketing Pillars
1. Green Brewing Technology
Renewable Energy
2. Autonomous Controls
3. CHP + PV Integrated within brewery applications
4. Partner with environmental and green energy organizations
1.
2. Historic Preservation
Dick Brothers Quincy Brewery Memorabilia
2. Historic events and places in tri-state region
3. Mississippi River and transportation heartland
4. Narrative “history bits” on each bottle
1.
3. Fresh and Local Beer
We buy fresh local hops, specialty grains, and adjuncts from Illinois growers
2. Our beer is made fresh and served to the customer with limited shelf time
3. Partner with agricultural sector
1.
4. Craft Beer Cuisine: Experimenting with ingredients, styles, and flavors
from around the world
31. Craft Beer Cuisine: Experimenting with ingredients,
styles, and flavors from around the world
Never dull and stagnant: Dick Brothers Brewing is constantly researching new
ingredients, worldly brewing styles, old world and new, and flavors from
around the globe to insert into our beers and generate food pairing ideas for
you…
Increased tourism: Microbreweries attract tourists, and Dick Brothers Brewing
would bring in people from the region who enjoy craft beer
Increased relationships with the sailing community in the form of Craft Beer
Cuisine Charters, sponsorships at regattas and the cruising community, sailing
clubs, reinvigoration of historic Mississippi tugs, barges, and paddlewheel
boats and how they brought different cultures thru the area, etc.
32. Financials
The business requires $300,000 for the company to start operations, $150,000 from a
business loan and $150,000 in investor equity. Following this there is no further
capital investments needed. Our pre-money valuation is $60,000 and our postmoney valuation is $360,000.
33. Financials
Dick Brothers Brewing will become profitable in year one and will achieve a break-even
event in year 2. Available cash in the year 2015, our third year of operations, will be
$474,000.
34. Risks
Ability of restaurants to incorporate Dick Brothers Brewing LLC
Construction constraints
Delay from permitting and legislation
Exit Strategy 5 to 10 years
Buyout investors
Diversify into more high end privately owned restaurants
Build larger capacity 10 bbl brewery offsite, transfer license from
brewpub to microbrewery
Sell brewing business to restaurant or larger contract brewery
35. Summary
Poised to revitalize the historic Dick Brothers microbrewery in
Quincy
Small batch brewing to generate extra restaurant sales and a
cooperative brewing environment for local homebrewers
Poised for partner opportunities
Growth relationship in place to partner with a larger contract
brewer to proliferate the Dick Brothers brand into the retail
market
Poised to expand food and beer market into sailing by
introducing Create Craft Beer Cuisine Adventure Charters
Poised to conduct T&E on brewery equipment and process
development
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Editor's Notes
Mike Crammer, Mac’s Homebrew, Brewing and Recipe Consultants – 5 plus years of monthly group home brewing discussions and the combined brewing experience of 30 plus active members.
Prototyping and design can be done by CTSI
Manufacturing can be done by multiple Quincy, IL companies