2. JMB Brewcraft LLC
Business Plan
TABLE OF CONTENTS
1. Table of Contents …………………………………………. 2
2. Executive Summary ………………………………………. 3
3. Company History .…………………………………………. 4
4. Product Development ……………………………………. 7
5. Timeline For Company Start-up .………………………. 9
6. The Competition …..……..………………………………. 10
7. Product Information ..……………………………………. 13
8. Organization & Management ..…………………………. 19
9. Marketing Strategy ………………………………………. 20
10. Financial Management . …………………………………. 22
11. Business Consultants & Contacts .……………………. 29
12. Appendices .……………………………….………………. 31
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3. JMB Brewcraft LLC
Business Plan
EXECUTIVE SUMMARY
Mission Statement:
• The goal of JMB Brewcraft LLC is to provide high quality products for
the professional bartender and beer enthusiast.
Company Information:
• Founded June 15, 2009
• Founding member: James M. Beale, Ph.D. – Inventor, Owner, & CEO
• Owned and operated in Brownsville, Texas
Facilities and Operation:
• A small office space will be initially required for marketing, managing
sales, packaging and shipping of products.
• All production will be outsourced.
• All sales will be conducted on-line through our company website
(www.JMBBrewcraft.com) and by direct corporate contact.
Primary Product:
• The BrewcrafterTM beer layering spoon (US Patent 61/181,748)
Supplemental Products:
• Pint Glasses
• T-Shirts
Current Company Status:
• Establishing business presence
• Raising capital: ~$80k (minimal) to $170k (optimal)
• Preparing for production
Financial Projections:
• Average monthly sales estimates: BrewcrafterTMs – 1k to 5k; Pint
glasses – 400 to 2k; and T-Shirts – 100 to 500.
• A gross margin of over 70% on all web-based sales is expected.
• First year revenue is anticipated in the range of $164k to $787k.
• Net profit is projected within the range of $35k to $500k.
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4. JMB Brewcraft LLC
Business Plan
COMPANY HISTORY
Company Founder:
• James M. Beale, Ph.D.
– Inventor, Owner, & CEO
– JMB Brewcraft LLC
– 25 Varela Court
– Brownsville, TX 78526
– (956) 346-8271
– JMBBrewcraft@gmail.com
Dr. Beale’s Education and Employment:
• Education:
– Ph.D. in Human Experimental Psychology, Cornell University,
1996; Minor: Cognitive Studies; Dissertation: ‘Acquired
categorical perception – Learning object categories and
categorical bounds’
– B.A. in Psychology, Ohio State University, 1989; with Honors and
Distinction in Cognitive Science; Thesis: ‘A visual half-field study
of sentence processing’
– B.A. in Philosophy, Ohio State University, 1989
• Professional Employment:
– Chief Executive Officer, JMB Brewcraft LLC, Brownsville TX,
Aug. 2009 – present.
– Assistant Professor of Cognitive and Behavioral Neurobiology,
Biological Sciences Department, UTB/TSC, Aug. 2005 – May
2009.
– Assistant Professor of Psychology, Behavioral Sciences
Department, UTB/TSC, Aug. 2003 – May 2005.
– Visiting Assistant Professor, Department of Psychology, Indiana
University South Bend, Aug. 2001 – May 2003.
– Assistant Professor, Department of Psychology, Grand Valley
State University, Aug. 1996 – May 2001.
James M. Beale – The Beer Connoisseur
• James first developed an appreciation for quality beer as an
undergraduate at Ohio State University in the mid 1980’s. Since then,
he has become familiar with most of the beers available on the market
from around the world.
• As a home brewer since 1998, James is also familiar with the
ingredients and brewing processes of most beers as well. Of them all,
Guinness® Stout has remained one of his all time favorites beers.
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Business Plan
COMPANY HISTORY
The Black & Tan
• One common way that Guinness® is served is as a layered beer drink
known as a Black & Tan, which features a layer of Guinness® Stout
over a layer of Bass® Ale. Since the nearly black stout and the copper-
colored pale ale have different densities, when properly poured the
beers layer on top of each other to create a beverage with a dramatic
appearance.
• Guinness® makes a layering spoon for this purpose, which they provide
along with the their taps for bar use.
• However, people are often frustrated by the difficulty of getting a good
layer separation – and bartenders resent the time needed for the pour.
SLOW
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6. JMB Brewcraft LLC
Business Plan
COMPANY HISTORY
Origins of The BrewcrafterTM
• In the early months of 2006, with the aim of designing a better Black &
Tan spoon James headed to his garage armed with a tablespoon from
his kitchen and – using hammer and anvil, vice grips and clamps – the
first prototype of The BrewcrafterTM beer layering spoon was born.
• Following more than a year’s worth of personal product testing, James
developed the second prototype in the summer of 2007, with the 3rd
prototype to quickly follow that December.
Figure 1. The BrewcrafterTM – Prototype Development:
1st prototype (1A & 1B) by early 2006; 2nd prototype (2A &
2B) summer 2007; 3rd prototype (3A & 3B) December 2007.
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PRODUCT DEVELOPMENT
The BrewcrafterTM Design
• These prototypes worked so well that friends and family encouraged
him to leave his career in academia to start a business, to produce The
BrewcrafterTM for a broader audience of beer enthusiasts.
• In April 2009 James set out his initial time-line for company formation.
• On the 28th of May 2009 the design for The BrewcrafterTM were
submitted for a U.S. Provisional Patent (Serial # 61/181,748).
• On June15th, 2009 James M. Beale registered JMB Brewcraft LLC
with the Texas Secretary of State.
Figure 2. The BrewcrafterTM: Design diagrams of stamped and
shaped form; US patent application submitted 28 May 2009.
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8. JMB Brewcraft LLC
Business Plan
PRODUCT DEVELOPMENT
The BrewcrafterTM in Action
Figure 3. The BrewcrafterTM: Functional diagrams of pouring
and removal; US patent application submitted 28 May 2009.
PLACE POUR REMOVE ENJOY
Figure 4. The BrewcrafterTM in Action
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9. JMB Brewcraft LLC
Business Plan
TIMELINE FOR COMPANY START-UP
Six Month Timeline for Start-up (April – September 2009)
• Patent Submission (1 – 2 months; April/May 2009)
– U.S. Preliminary Patent Application (US 61/181,748)
• Submitted: May 28, 2009
– Further Patents:
• U.S. Non-Preliminary Patent Application (within one year)
• E.U. Patent Application to follow (within one year)
• Business Set-up (3 – 4 months; June/July 2009)
– Form Limited Liability Company (LLC)
• Registered: June 15, 2009
– Business Cards
– Complete Formal Business Plan
– Office Space
• Apply to ITEC Small Business Incubator
– Initial Financial Set-up
• Company Bank Account
– Trademark Registration
• Company Logo & Product Names
– Creation of Die
– Initial Production Run (1k to 10k units)
• Final Quality Testing (finish)
• For Product Promotion & Marketing
– Web Site Development
• Financial Set-up (4 – 5 months; July/August 2009)
– Capital Investment
– Small Business Start-up Loan
– Hiring CEO: Salary and Benefits
• Production & Sales (5 – 6 months +; August/September 2009 )
– Full Production Run (ideally 30k+ units)
– Packaging
– Finalize Web Site (for online sales)
– Initial Implementation of Marketing Strategy
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Business Plan
THE COMPETITION
Market-Related Facts and Figures:
• Guinness® is the #1 stout in the world.
• Top 5 Guinness® markets (www.diageo.com):
– 1. Great Britain
– 2. Ireland
– 3. Nigeria
– 4. United States
– 5. Cameroon
• Guinness & Co. makes almost €2 billion (~$1.4B) annually on sales in
Ireland alone. (wikipedia.org)
• In 2001 – “Almost 2 billion pints of Guinness a year were sold around
the world and over 1 million pints of Guinness a day were sold in Great
Britain alone.” (beeripedia.com)
• In 2008, Guinness® sold 11.4 million 9-litre cases, had 1.5% volume
growth and 6.4% net sales growth. (www.diageo.com)
• In 2008, Diageo GB spent £3 million (~$1.8M) to promote Guinness®
for St. Patrick’s Day by supplying promotional kits to 29,000 pubs.
• The Black and Tan “is believed to have originated in pubs in Britain
with drinkers ordering a mix of dark stout and draught bitter. The name
is first recorded in 1889” (wikipedia.org)
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Business Plan
THE COMPETITION
1. Guinness® Pouring Spoon ($9.50 - $10.95)
2. Kegworks.com Black & Tan Spoon ($5.95)
3. Lagerhead® Black & Tan Turtle ($8.99 - $12.00)
4. Bass® Beer Brolly ($3.99)
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Business Plan
THE COMPETITION
Competitors Prices:
• Guinness® Spoon ($9.50 - $10.95)
• Kegworks.com ($5.95)
• Lagerhead® Black & Tan Turtle ($8.99 - $12.00)
• Bass® Beer Brolly ($3.99)
Competitor’s Packaging (from online purchases)
• Guinness® Spoon
– Poor Packaging: poor quality cardboard box (9.75” x 7.25” x 5”),
thin cardboard logo/info sheet (B/W/gold), spoon attached using
included chain, all in small plastic bag, air-bag packaging filler
• Kegworks.com
– Minimal Packaging: plain UPS packing envelope, with packing
slip (address) on outside, spoon and unattached chain in small
plastic bag stapled closed on one end, no info sheet
• Lagerhead® Black & Tan Turtle
– Adequate Packaging: Amazon.com box (9.5” x 7” x 3.5”), thick
cardboard info sheet w/spoon attached by 2 twist-ties, all in a
plastic bag, air-bag packaging filler
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13. JMB Brewcraft LLC
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PRODUCT INFORMATION
BrewcrafterTM Competitive Sales:
• BrewcrafterTM Pricing
– Probable Price / Unit ………………………………………. $9.99
– Estimated Production Cost / Unit ………………………... $3.00
– Expected Profit / Unit ……………………………………… $6.99
BrewcrafterTM Packaging:
• Quality & Price
– Better quality than the competition
– While minimizing price
• Environmentally Friendly
– Recycled materials
– Minimal waste
• No plastics
• no twist ties
• no printing on carton
• Classy & Recognizable Design
– BrewcrafterTM carton
• 4½ “ x 3½ “ x 3”
• Embossed design
• Recycled paper
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14. JMB Brewcraft LLC
Business Plan
PRODUCT INFORMATION
The BrewcrafterTM Production / Manufacturing
• Tool & Die
– Two–Stages Process
• Stage 1 – stamping
• Stage 2 – shaping
• Metal Stamping / Hydraulic Press
– Materials for BrewcrafterTM
• 1/16” Chrome Nickel Stainless Steel (316 SS sheet metal):
– Chrome for superior resistance to pitting and
corrosion
– With nickel to retain color and luster longer
BrewcrafterTM Advantages & Disadvantages:
• Advantages over Competitors’ Products
– Fast pour
– Easy, hands-free use
– Reduced spillage
– Better layering
• Disadvantages
– Smaller company operating budget than competitors
– Lack of initial public awareness / name recognition
– BrewcrafterTM must be removed “with a twist”
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15. JMB Brewcraft LLC
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PRODUCT INFORMATION
Supplemental Products:
T-Shirts (black on white & white on black)
• Front: Pocket Logo
• Back: Table of Traditional Layered Beer Drinks
• Pricing:
– Cost ………. ~$2.50 ea.
– Sale Price … $12.99 ea.
– Profit ………. $10.49 ea.
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16. JMB Brewcraft LLC
Business Plan
PRODUCT INFORMATION
Supplemental Products:
Pint Glasses (12oz)
• Front: Company Logo
• Back: Table of Traditional Layered Beer Drinks
• Pricing:
– Cost ……….. ~$1.50 ea.
– Sale Price … $9.99 ea.
– Profit ………. $8.49 ea.
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Business Plan
PRODUCT INFORMATION
Traditional Layered Beer Drinks:
Name Top Ingredient Bottom Ingredient
Black & Tan Guinness® Stout Bass® Ale
Half & Half Guinness® Stout Harp® Lager
Black Castle Guinness® Stout New Castle® Ale
Snakebite Guinness® Stout Hard Cider
Blacksmith Guinness® Stout Smithwick's® Ale
Dark & Steamy Guinness® Stout Anchor Steam®
Black Velvet Guinness® Stout Champagne
Patriot Guinness® Stout Samuel Adams® Lager
Black Cherry Guinness® Stout Samuel Adams® Cherry Wheat
Eclipse Guinness® Stout Blue Moon®
Dirty Turtle Guinness® Stout Terrapin® Rye Pale Ale
Blacktop Beamish® Stout Fat Tire® Amber Ale
Bohemian Beamish® Stout Pilsner Urquell®
Big Easy Beamish® Stout Abita Amber Lager®
Black & Blue Murphy's® Stout Bar Harbor® Blueberry Ale
Snapper Murphy's® Stout Redhook ESB®
Bumble Bee Murphy's® Stout Dundee® Honey Lager
What can you layer?
www.JMBBrewcraft.com
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18. JMB Brewcraft LLC
Business Plan
PRODUCT INFORMATION
Possible Future Product Lines:
• Bar towels
• Drink coasters
• Bottle Opener
• Booklet (or Coffee-Table How-To Book)
– History of the Black & Tan
– Layered drink recipes
• BrewcrafterTM Starter Kit / Gift Box
– BrewcrafterTM, pint glasses, opener, booklet, towel & coasters
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Business Plan
ORGANIZATION & MANAGEMENT
Company Information:
• Founded on June 15, 2009 as a Limited Liability Company (LLC)
• Founding member: James M. Beale, Ph.D. – Inventor, Owner, & CEO
• Owned and operated in Brownsville, Texas
One Full-time Employee:
• Chief Executive Officer (CEO): James M. Beale Ph.D.
– Salary ($65,000 / yr)
• Social Security & Medicare (inclusive) = 15.3%
– Social Security when self employed = 12.4%
– Medicare is another 2.9%
– Benefits (~$19,000 / yr; 25-30% of salary)
• Medical
• Injury & death insurance (Cobra)
• Simplified Employee Pension (SEP) Plan
– Duties: All aspects of company operation
Facilities and Operation:
• A small office space will be initially required for:
– Marketing
– Managing sales
– Packaging
– Shipping
• All production will be outsourced.
• All sales will be conducted on-line through our company website
(www.JMBBrewcraft.com) and by direct corporate contact.
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20. JMB Brewcraft LLC
Business Plan
MARKETING STRATEGY
A Multi-Tiered Marketing Approach:
Web-Based sales (web site: www.JMBBrewcraft.com)
Web-Based Marketing Campaign (to jump-start sales)
• ‘Amateur’ Video Style – posted to YouTube & etc
Possible Commercials:
• “How to make a perfect Black & Tan”
– Close-up on pint glass as a Black & Tan is poured
– As ale is poured into a pint glass up to half way:
• Slow Irish music
• Text: “Good things may come to those who wait …”
– Spoon is placed on glass
– As stout begins pouring:
• Music shifts to fast Irish music
• Text: “… But why wait?”
– Finish with:
• Product info
• Company logo
• Web address
• Alternately: Same as above with variation in text:
– “Think Black & Tan’s require patience?”
– “Think again.”
Ideas for Marketing Slogans:
• “Be a brewcrafterTM.”
• “What can YOU layer?”
• “How stacked is your beer?”
– “(How) Does your beer stack up?”
– “Now that’s a nicely stacked beer”
• “Beer with a twist.”
• Double meaning: a new combo, twist of the spoon
– “Your favorite beer with a new twist.”
– “A new twist on an old classic”
– Possibly useful for a Heineken and Stout (Beamish or Murphys)
commercial
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21. JMB Brewcraft LLC
Business Plan
MARKETING STRATEGY
Additional Marketing Ideas Include:
NPR Special Interest (human interest) Story
• Title: “One man: Reinventing the spoon … and himself”
– Success in the midst of recession
– Good ideas can be simple
– An inventor believing in himself
• Free international media exposure = overnight boost in sales
Magazine Adds and Conventions
• Brewing & Brew Supply Companies
• Home Brewing (e.g. Zymergy)
• Bartending
Wholesale Large Orders (custom spoon designs?)
• Large Bar & Restaurant Chains
– Chilli’s®, Benigan’s®, Shenanigan’s®, etc.
• Beer manufacturers
– Guinness®
– Heineken® International (Murphy’s & Beamish)
Wholesale Distribution through existing online retail outlets, such as:
• www.thepubshoppe.com
• www.pubglasses.com
Sale of Company (need value estimate)
• Guinness® - Owned by Diageo PLC ADS
– Diageo is the largest multinational beer, wine and spirits
company in the world - formed in 1997 from merger of Guinness
plc and Grand Metropolitan plc – 2008 revenue: £10,643 million -
www.diageo.com)
• Heineken International
– Owns Murphy’s® & Beamish® - the third largest brewery in the
world - 2008 revenue: €14.32 billion -
www.heinekeninternational.com
– To compete with Guinness® & improve market share
• KegWorks (www.KegWorks.com)
• Others ?
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23. JMB Brewcraft LLC
Business Plan
FINANCIAL MANAGEMENT
Start-Up Expenses:
Minimal: Optimal:
Additional Capital Investment Required
• Minimal …………. $ 79,859
• Optimal …………. $169,859
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24. JMB Brewcraft LLC
Business Plan
FINANCIAL MANAGEMENT
Projected First Year Sales (by Month and Unit Category):
Projected Growth:
• Optimal projections represent the estimated maximum for which unit
sales can be easily managed with the current company structure.
• Should unit sales exceed these predictions, company reorganization
will be required. Reorganization would likely include the hiring of
additional staff in the following areas:
– Packaging and shipping
– Office management
– Sales and marketing
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25. JMB Brewcraft LLC
Business Plan
FINANCIAL MANAGEMENT
Projected First Year Net Profit (by Month):
• Minimal
• Optimal
Projected First Year Profit (Totals):
Minimal Optimal
Revenue (Sales): $ 164,314 $ 787,178
Gross Profit: $ 122,902 $ 588,853
Net Profit: $ 35,500 $ 501,451
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29. JMB Brewcraft LLC
Business Plan
BUSINESS CONSULTANTS & CONTACTS
• Attorneys:
– John Fortkort, Fortkort & Houston, Intellectual property (patent)
attorney, jfortkort@foholaw.com, 512-343-4525
– Randy Houston, Fortkort & Houston, Intellectual property
(trademark) attorney, rhouston@foholaw.com, 512-343-4539
• Business:
– John Sossi, Director, Business Incubator/Services, International
Innovation Center, john.sossi@utb.edu, 956-882-4119
– Abraham Greenspan, Program Director, Banking/Export-Import
Programs, UTB, abraham.greenspan@utb.edu, 956-882-4105
– Dr. Rex Draman, UTB Business (manufacturing and corporate
management), EDBC2.438, 882-5819, rexford.draman@utb.edu
– Roy Mullin, Roy Mullin Enterprises LLC, 512-422-7040 mobile,
roy@roymullin.com (from Rex Draman)
– Don Crouse, quality manager at LittleFuse in Matamoros and
English grad (his HR director may be helpful) (from Allan Oak)
• Accounting:
– Solo Wages Income Tax Business Services & Training, (956)
544-4655, 301 Mexico Blvd, Ste G3, Brownsville, TX 78520
– Brian Flax, President, Newtek – Financial Information Systems,
1-800-381-8022 x10167, bflax@newtekbusinessservices.com
– Seth Colwell, UTB Accounting instructor, EDBC2.512, 882-5816,
seth.colwell@utb.edu (from Rex Draman)
– Gabriel Cuellar, Apex Business Solutions, 956-521-1045 (from
Allan Oak)
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30. JMB Brewcraft LLC
Business Plan
BUSINESS CONSULTANTS & CONTACTS
• Manufacturing:
– Manuel Alcocer, UTB Business Dept. (& contacts in the
Maquilidora association), 882-5726, EDBC1.440,
manuel.alcocer@utb.edu
Metal Stamping:
– Gustavo Cardenas, Olson Internacional, Matamoros Industrial
Park, 011-52-868-812-8427 (larger stamped items) (also: Cesar
Tovar, Ariel Vela – acct manager) (from Manuel Alcocer)
• IMS Burhke-Olson, 511 W. Algonquin Rd., Arlington
Heights, IL 60005, 847-981-7550,
Rnellemann@imsmfg.com, www.olsonintl.com
– Gobar Systems Inc., 3320 E. 14th St., Brownsville, TX, (956) 377-
4836, mail@gobarsystems.com, www.gobarsystems.com, (also:
242-7418, 467-5104, 525-4146)
– Tella Tool & Manufacturing Company, 3401 Nafta Parkway,
Brownsville, Texas 78526, (956) 832-0600, info@tellatool.com,
www.tellatool.com
– Ideal Manufacturing Solutions, 488 Regal Rd, Brownsville, TX
(956) 986-0606, or call Rohn Enclosures (800.256.7646) or Ideal
Parts (414.423.0606), www.idealmfgsolutions.com,
mjaehnke@idealmfgsolutions.com
– Premier Components Inc., 712 Morgan Blvd., Suite 108,
Harlingen, Texas 78550, (956) 428-1684,
sales@premiercomponents.com, www.premiercomponents.com
– G. Shank (Shun-Lin) (small items, copper/brass, contacts), 812-
8800, 812-8824
Sheet Metal:
– Jose Herrera, U.S. Herr Industrial Metals Co. Inc., 3498 Burton
Dr., Brownsville, TX 78521, member of GBIC, 504-9450
www.paginasprodigy.com/8688166115/herr
– Brownsville Sheet Metal Works, 1954 S Price Rd, Brownsville,
TX, (956) 546-4517, www.bsmw.com
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Business Plan
APPENDICES
Company Web Site (* IN DEVELOPMENT *)
• Host service (servergrid.com – from Manny) ~$7.50 - $16.00 / mo
• Domain name (www.JMBBrewcraft.com) $20.00 / year
– Company e-mail
• Beale@JMBBrewcraft.com
• Others as appropriate
• Web Site Content
– Design consistent with other graphics work
• Online Sales and Billing
– 3rd party company for secure credit card transactions
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APPENDICES
Competitors Products
On-line How-to video from YouTube:
“How to Pour a Black and Tan”
http://www.youtube.com/watch?v=qLwmwt81NjM
Time to pour stout:
40 seconds
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34. JMB Brewcraft LLC
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APPENDICES
Competitors Products
The Lagerhead Turtle:
“Black and Tan Kit by Brutul”
http://www.youtube.com/watch?v=FV6Dtf0NUj4
Time to pour stout:
25 seconds
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35. JMB Brewcraft LLC
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APPENDICES
CONFIDENTIAL
BrewcrafterTM Commercial (Demo)
The BrewcrafterTM
Commercial for online marketing campaign:
“How to make the perfect Black & Tan”
Time to pour stout:
NOTE: 8 seconds
This commercial is for company demonstration purposes ONLY.
It is CONFIDENTIAL, to be viewed by potential investors, and is
NOT FOR PUBLIC VIEWING.
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