Bricks Brewery

B r i c k B r e w i n g C o m p a n y I n c .
Business Planning
Allison Stanbury - Evan van Niekerk - Amy Tsai - David Cortes - Jespeter Liao

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Table of Contents
Executive Summary .................................................................................................................4
1.0 - Business of the Company..............................................................................................5
1.1 - Business Summary and History...........................................................................................5
1.2 – Industry Overview ...................................................................................................................5
1.3 – Current Situation of the Company......................................................................................6
Production.........................................................................................................................................................6
Sales.....................................................................................................................................................................7
1.4 – Goals and Objectives ...............................................................................................................7
Overall Goal ..........................................................................................................................................7
Objectives..............................................................................................................................................8
Year 1 .................................................................................................. Error! Bookmark not defined.
1.5 – Key Success Factors.................................................................................................................8
1.6 – Structure of the Company......................................................................................................9
2.0 – Product Description ................................................................................................... 10
2.1 – Details Description of Product ......................................................................................... 10
Brewing Proprietary Brands..................................................................................................................10
Contract Production...................................................................................................................................11
Allied Brand Marketing and Sales Partnerships.............................................................................11
2.2 – Stage of Development of Product .................................................................................... 11
2.3 – Certification and Regulatory Standards Required.................................................... 12
2.4 – Licensing and Franchising.................................................................................................. 13
2.5 – Customer Benefits Offered by Product.......................................................................... 13
Distributors ...................................................................................................................................................13
Final Consumer............................................................................................................................................14
3.0 – Market Analysis ........................................................................................................... 14
3.1 – Target Market Profile .......................................................................................................... 14
3.2 – Total Target Size.................................................................................................................... 16
3.3 – Trends ....................................................................................................................................... 16
3.4 – Estimated Company Sales and Market Size.................................................................. 17
Canada .............................................................................................................................................................17
Ontario................................................................................................ Error! Bookmark not defined.
Manitoba............................................................................................ Error! Bookmark not defined.
Saskatchewan.................................................................................. Error! Bookmark not defined.
Alberta................................................................................................ Error! Bookmark not defined.
3.5 – Rules of Purchase .................................................................................................................. 17
4.0 – Competition................................................................................................................... 18
4.1 – Direct Competitors – Current and Future..................................................................... 18
Labatt ...............................................................................................................................................................18
Molson Coors ................................................................................................................................................19
Sleeman...........................................................................................................................................................19
4.2 – Indirect Competitors – Current and Future................................................................. 19
4.3 – Substitute Products .............................................................................................................. 20
4.4 – Competitive Edge................................................................................................................... 21

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4.5 – Competitive Analysis Chart................................................................................................ 22
5.0 – Marketing Strategy ............................................................................................................... 23
5.1 – Positioning............................................................................................................................... 23
5.2 – Sales Strategy and Tactics................................................ Error! Bookmark not defined.
5.3 – Advertising and Promotion Plans ................................. Error! Bookmark not defined.
Advertising........................................................................................ Error! Bookmark not defined.
Sales Promotion.............................................................................. Error! Bookmark not defined.
Internet Marketing ........................................................................ Error! Bookmark not defined.
5.4 – Advertising and Promotion Schedule .......................... Error! Bookmark not defined.
5.5 – Pricing Strategy...................................................................................................................... 30
5.6 – Channels of Distribution................................................... Error! Bookmark not defined.
5.7 – Public Relations and Publicity Plan................................................................................ 30
Press release .................................................................................................................................................31
6.0 – The Management Team............................................................................................. 32
6.1 Key Management Team Profiles, Qualifications, and Responsibilities................. 32
6.2 Board of Directors.................................................................................................................... 33
6.3 – Principle Advisors................................................................................................................. 35
7.0 – Operations ..................................................................................................................... 35
7.1 – Location .................................................................................................................................... 35
7.2 – Capital Equipment Requirements................................................................................... 35
7.3 – Labor Requirements ............................................................................................................ 36
7.4 – Source of Supply .................................................................................................................... 36
7.5 – Production Process............................................................................................................... 37
7.6 – Inventory Requirements .................................................................................................... 37
8.0 – Implementation Schedule ........................................................................................ 38
8.1 – Overall Schedule with Timelines..................................................................................... 38
2014..................................................................................................................................................................38
2015..................................................................................................................................................................40
2016..................................................................................................................................................................42
8.2 – Potential Problems to Achieving Deadlines ................................................................ 44
8.3 – Milestones................................................................................................................................ 44
9.0 – Financials ....................................................................................................................... 44
9.1 – Type and Amount of Financing Required..................................................................... 44
9.2 – Pro-forma Income Statement............................................................................................ 45
9.3 – Pro-forma Cash Flow Statement ...................................................................................... 46
9.4 – Pro-forma Balance Sheet.................................................. Error! Bookmark not defined.
10.0 – Key Risks...................................................................................................................... 62
10.1 – External Environment Risks........................................................................................... 62
10.2 – Internal Environment Risks............................................................................................ 64
10.3 – Marketing Risks................................................................................................................... 64
10.4 – Human Resources Risks................................................. Error! Bookmark not defined.
11.0 – Contingency Plans .................................................................................................... 65
11.1 – Contingency Plan if Objective not met ........................................................................ 65
11.2 – Contingency Plan if Objectives Exceeded................................................................... 66
Exhibits.....................................................................................Error! Bookmark not defined.

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Executive Summary
Brick Brewing Co. Limited (Brick) is a Canadian-owned brewery based out of
Waterloo, Ontario that produces, sells, markets, and distributes packaged and
draught beer. As a rather small, and local brewery with rich Canadian history, Brick
Brew Co. Limited has vast opportunity for growth and investment. Its greatest asset
is the brewery in Waterloo, Ontario that currently produces 287,500 hectoliters
(HL) per year, which is 64% of their total production capacity of 450,000HL. This
leaves the remaining 34% which is currently being unused.
Brick Brewing Co. Limited’s focus over the course of 2014-2016 will be to expand
geographically within Canada. The company will do so by introducing their value
priced beer line, the Laker brand, into Manitoba, Saskatchewan, and Alberta. Brick
currently only sells its Laker brand in Ontario. Because Brick is not utilizing 34% of
their brewery’s production capacity, the company’s costs of geographic expansion
will remain below average. Brick will target distributors and end users within the
different provinces. The aim of Brick Brewing Co. Limited’s operations will be to
reach $88,487,450 in sales per year by January 31 2017. This is a 16.73% increase
from the fiscal year of 2014’s sales of $74,142,000.
The Laker brand will be introduced to Manitoba in the beginning of 2014, followed
by Saskatchewan in the beginning of 2015, and lastly Alberta in the beginning of
2016. Brick Brewing Co. Limited will position itself as a 100% Canadian-owned
Ontario brewery that offers award-winning beer with a gold-medal quality at an
affordable price to beer drinkers across Canada.
Marketing for both target markets will be focused on maintaining the current sales
of the Waterloo brand and Seagram Coolers, but will assist aggressive geographical
expansion for the Laker brand. Marketing aimed at the two target markets will
consist of advertising, sales promotion, public relations, and internet marketing.
Media vehicles have been chosen based on their effectiveness to reach and educate
the target markets.
As the beer industry in Canada continues to grow, Canadians have shifted towards
drinking less expensive domestic beer rather than imported beer. This is the ideal
opportunity for Brick Brewing Co. Limited to create more value through geographic
expansion and increasing yearly sales.

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1.0 - Business of the Company
1.1 - Business Summary and History
Brick Brewing Co. Limited (Brick) is a Canadian brewery that’s primary business
relates to the production, selling, marketing, and distribution of packaged and
draught beer. Originally known as Formosa Brewery, the company was established
three years after the Confederation in 1870 and has a wealthy history in the beer
and beverage industry. Brick was itself formally founded in 1984 and is one of
Ontario’s original craft breweries. Brick has accompanied its Waterloo premium
craft beers with other recognized brands such as Red Baron, Red Cap, Laker, and
Formosa Springs Draft. As of 2011, Brick acquired the Canadian rights to the
Seagram Coolers brand, which it has now re-launched as Seagram Blends.
In its first year of operations, this traditionally European brew house produced and
shipped 35,000 cases of beer with only eight employees. Today, Brick produces over
3.6 million cases of product and is acknowledged as Ontario's largest Canadian-
owned and Canadian-based publicly held brewery.
1.2 – Industry Overview
The Canadian alcoholic beverage industry generated over 20 billion dollars in
revenue in 2012, an overall 3% increase from 2011. Beer remained the highest
segment in the industry with a 43.8% share (increase of 0.6% from 2011), followed
by wine with 31.1% (increase of 5.9% from 2011). Spirits make up the remaining
25.1% (increase of 3.9%) of the industry. Alberta and Manitoba saw the highest
increase in beer sales by 7.1% and 6.4% respectively.1
Canadians have shifted towards drinking less expensive domestic beer rather than
imported beer. The 2008 recession has been attributed as the leading cause for this
change in behavior.2 Canadian breweries not only have to abide by federal laws, but
also must adhere to the provincial and territorial liquor board that regulates and
controls the sale of alcohol.3
Two foreign-owned companies dominate the Canadian beer market. Molson Coors
holds a 42.3% market share and Labatt owns 43.2%. The third largest company,
Sleeman, is also foreign-owned holding a 6% share of the market. The balance is
split up amongst domestic producers (i.e. microbreweries).4
1 Stats Canada, 2013 <http://www.statcan.gc.ca/daily-quotidien/130411/t130411a002-eng.htm>
2 Agriculture and Agri-Food Canada. 2013. <http://www.agr.gc.ca/eng/industry-markets-and-
trade/statistics-and-market-information/by-product-sector/processed-food-and-beverages/the-
canadian-brewery-industry/?id=1171560813521>

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1.3 – Current Situation of the Company
In a beer industry that is increasingly dominated by foreign players, Brick’s remains
to be a proud Ontario-based, 100% Canadian-owned business. The brewery is
known for offering Ontario beer drinkers exceptional quality, taste, and value.
Brick currently owns premium beer under the Waterloo brand name and craft beer
under the Laker, Red Baron, Red Cap, and Formosa brand names. It also owns the
Seagram Coolers family after purchasing the rights from Corby Distilleries Limited
in 2011. Brewing and co-packaging is another revenue stream for Brick, which
contributes to 29% of its total sales. Brick has agreements with various beer
manufacturers and retail stores. Under the agreement with Loblaws Inc., it
produces, sells, markets and distributes multiple beers under the licensed
President’s Choice trademark. It also produces Mott’s Caesar brand for Canada Dry
Mott’s Inc. and performs as a sales agent in Ontario.
Products of Brick are mainly sold in Ontario through The Beer Store, Liquor Control
Board of Ontario. Waterloo beer is sold not only in Ontario but also within
provincial liquor boards in Atlantic and Western Canada. Seagram Coolers products
are widely distributed across Canada. Others include government/private owned
liquor stores.
As of the quarter-ended July 28th, 2013, the main brands of Brick performed well
with Laker volume up 11%, Waterloo up 22% and Seagram Coolers and Ciders up
5% from the same period last year. Net revenues for the second quarter of the fiscal
2014-year decreased $0.1 million compared to the same period in 2013. Gross profit
margin for the quarter declined to 21.4% from 33.2% in Q2 of the fiscal 2013-year,
due to higher costs of goods driven by product launch promotions. Year-to-date,
Brick has invested in the Laker product line by increasing their advertising efforts
and offering free can-in-case promotions within specially marked 12 and 24-packs
of beer. This resulted in selling, marketing and administration expenses to increase
to $2.7 million from $2.0 million from the prior year. In addition, there was a $0.4
million decrease in EBITDA for the second quarter of the fiscal 2014-year compared
to EBITDA in the second quarter of the fiscal 2013-year of $2.4 million. 5
Production
Brick is currently producing 287,500 hectoliters (HL) per year, which is 64% of their
total production capacity of 450,000HL. This leaves the remaining 34% which is
currently being unused. Of the 204,000HL of production or 71%, 83,000HL is
producing Brick’s products and 29% is from contract production from co-packing.
Below is a detailed break down of Brick Brewing Co. Limited’s total production.
5 Brick Brewing Co. Limited 2013 Q2 Management Discussion and Analysis

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Figure 1 - Brick Brewing Co. Limited Total Production in 2013
Sales
Brick’s current yearly sales as of January 2013 are $74,142,000 per year. Of this
total, 71%, $52,640,000, is from the production of their own products while the
remaining 29%, $21,502,000, is from their contract production and co-packing
agreements.
Figure 2 - Total Sales Break Down in 2013
1.4 – Goals and Objectives
Overall Goal
Sales
17,500
175,500
11,500
83,000
148,000
Production in Hectolitres - 2013
Seagrams Coolers
Laker Beer
Waterloo Beer
Contract Production/Co-
packing
Unused Capacity
6%
63%2%
29%
Total Sales Break Down - 2013
Seagrams Coolers
Laker Beer
Waterloo Beer
Co - Packing/Contract
production

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In order to reach $88,487,450 in sales per year by January 31 2016, a
16.73%increase from the last fiscal year of 2013’s sales of $74,142,000 is required.
Objectives
2014
Production
New 3,930.50HL
Total 179,430.50HL
Sales
New $1,240,417
Total $75,805,212
Market Expansion
In 2014 Brick plans on entering Manitoba and obtaining retail space in 202 outlets.
2015
Production
New 2,658.96HL
Total 182,089.46HL
Sales
New $838,874
Total $81,450,184
Market Expansion
In 2015 Brick plans on entering Saskatchewan and obtaining retail space in 170
outlets.
2016
Production
New 7,324.71HL
Total 189,414.17HL
Sales
New $2,318,524.93
Total $88,487,450
Market Expansion
In 2016 Brick plans on entering Alberta and obtaining retail space in 303 outlets.
1.5 – Key Success Factors
Significant improvements within the past six years are what made Brick Brewing
Company so successful. They are as follows:
 Quality control: Award-winning products and quality controlled facilities
has allowed Bricks to develop their co-packing market and maintain
competitive despite their size within the national beer industry.

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 Diverse product portfolio: The purchase of Seagram Coolers from Corby
Distilleries LTD has allowed Brick to obtain a broader product mix to gain
more access to a bigger market of alcoholic beverages in 2011.
 Aggressive positioning strategy for all of their products: Nick Relph, the
new Vice-President of Sales and Marketing, showcased the internationally
awarded products. This has allowed Brick’s Beer to be seen superior in look
and taste in comparison to other domestic brands at a competitive price in
correspondence to their commercial plans.
 Strong financials: The loss of a CFO at the beginning of the first quarter has
not caused a huge difference to Brick’s financials. Funds for sustaining brand
loyalty are still being fed by the incremental volume and gross margin of
actively pursued co-packing contracts. Significant improvements in product
volume since the completion of upgrades to their canning line have positively
improved their financial situation since the first quarter. The newly
appointed CFO, Sean Byrne, shows promise with his twenty years of senior
executive finance management.
1.6 – Structure of the Company
Brick Brewing Company Limited is a public traded with 145 employees. The
Company has a functional organizational structure where employees are separated
to perform their designated specialized tasks. 6
6 “Brick Brewing Co. Limited”, 2013, < http://www.brickbeer.com/our_brewery/>
Board of
Directors
Chief Financial
Officer
Sean Byrne
Chief Technical
Officer
Russell
Tabata
Vice President
Marketing &
Sales
Nick Relph
President &
CEO
George H.
Croft

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2.0 – Product Description
2.1 – Details Description of Product
Brick offer three separated services/products. They are as follows:
Brewing Proprietary Brands
Brick Brewing Co. Ltd. was founded in 1984 a year in which it sold 35,000
cases of beer. Since then they have grown to 2.5 hectoliters in 2005 and
today they have a brewing capacity of 5.5 million cases. The beverages they
offer include beers, malt alternatives, and ready to drink coolers as well as
Ciders. All of these products are offered in bottles; two sizes of kegs and
three sizes of cans and come in variety of all standard beer and coolers
package sizes.
The products above products are further broken into three separate brands.
These brands are:
1. Laker Beer
Laker beer is a line that is offered as an affordable beer with the main
goal being to offer great value to the customer. Brick do this through
the price, adding bonus beers, giveaways with the beers as well as
contests where items as expensive as cars are given away. The Laker
Beers product line makes up the largest portion of Brick’s revenue:
 Laker Lager
 Laker Honey
 Laker Light
 Laker Ice
 Laker Red
 Laker Strong
 Laker Ale
2. Waterloo Beer
Waterloo Beer is a line of craft beers that is aimed at providing high
quality products to the avid beer drinker. Although this line makes up
the smallest portion of revenue, proportionally, it is a premium
product line where Brick keeps to its craft beer roots:
 Authentic Amber
 Original Dark
 Traditional IPA
 Classic Pislner
 Waterloo Porter
 Waterloo Belgian
Ale
 Waterloo Iron
Horse Bock
3. Seagram Coolers
Crafted with pure natural spring water and subtle natural flavoring
Seagram Coolers is Brick’s final brand. They offer a variety of original
flavors to give a variety of options other than beer to the market place
 Apple Cider
 Pear Cider
 Amber Cider

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 Original Wildberry
Vodka Cooler
Extra Vodka Cooler
Malt-Based Cooler
 Orange Cream Swirl
Vodka Cooler
 Seagram 80 Black
Cherry
 Classic Lemon
Iced Tea Vodka
Cooler
 Classic Lemon
Iced Tea Malt-
Based Cooler
 Classic
Lemonade Vodka
Cooler
 Classic
Lemonade Malt-
Based Cooler
Contract Production
The second area of business that Brick takes part in is Contract Production for
small/start up breweries. How this works is that Brick will use their production
capabilities to brew beverages for other companies who would not normally be able
to handle the costs of production. The options once again include a variety of beers,
malt alternatives, and ready to drink coolers and ciders. They offer this service to
anyone from the smallest customers looking for small batch craft beers to medium
size companies looking for 1000+ units a day.
Allied Brand Marketing and Sales Partnerships
The final area of business that Brick takes part in goes along with the last. On top of
offering their services for production, they also offer allied brand marketing and
sales partnerships. This process includes everything from helping decide on the best
growth management strategy for the product/company, product life cycle
management, and even distributions and supply chain. This once again helps the
company cut costs and time used which allows them to focus on the more important
things involved in a start-up company.
For the duration of this plan the focus will be based on the geographic
expansion of the Laker brand beers while all other operations will remain
constant.
2.2 – Stage of Development of Product
Brick’s Laker brand is in the finished product stage and currently makes up 56% of
the company’s revenues. The Laker label has a diverse range of products including
Lager, Ice, Light, Red 55, Honey Brown, and Strong 6.5 all of which are brewed year
round and only distributed throughout Ontario via The Beer Store and various
licensed establishments. To better utilize Brick’s production capabilities, Brick will
be implementing a strategy to bring the already successful Laker brand into new
provinces and markets7
7 Brick Brewing Co. 2013. <http://lakerbeer.com/our_beers>

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2.3 – Certification and Regulatory Standards Required
The provincial governments in Canada regulate the production, distribution,
marketing, and pricing of beer. In addition, the provincial governments enforce
commodity taxes and license fees in relation to the manufacture and sale of these
products.
Brick, as a brewer, is obligated to hold a Brewery License from the Liquor Control,
Licensing Branch and a Federal Brewery License from the Canada Revenue
Agency. The brewery license allows Brick to sell in retail stores within different
provinces. The company must also obtain an Agent’s License that includes:
 Ability to sell the product off-site
 Ability to market the product off-site
 Ability to hire and independent agent to market and sell the product off-site
Below is more information regarding specific certifications and regulatory
standards required by each province the Laker brand will be introduced to:
Ontario
The Alcohol and Gaming Commission of Ontario (AGCO)8 is responsible for
administering the Liquor License Act that covers the majority of Ontario's beverage
alcohol laws. These laws provide the regulatory needs for the responsible sale of
beer in the province. The Liquor License Act also states no company can advertise
beer except in accordance with the regulations. It is the responsibility of the licensee
to make sure that advertising carrying its business or brand name, or endorsed by it,
follows the guidelines set out in the regulation and in the Liquor Advertising9
Guidelines. Brick must also posses a Manufacturer’s License that gives the
brewery the ability to sell its beer to the Liquor Control Board of Ontario (LCBO). If a
brewery chooses to go through the LCBO, it still must meet laboratory, packaging,
labeling and bar code requirements.
Manitoba
The Manitoba Liquor Control Commission (MLCC)10 regulates the selling of beer in
Manitoba. Brick must get an approved listing from the MLCC in order to sell its beer
in Manitoba. The Liquor Control Act is a provincial act in Manitoba that gives legal
authority to the Government, through the MLCC, to control the importation, sale,
consumption, and possession of beer in the province.
8 Alcohol and Gaming Commission of Ontario. 2013.
<http://www.agco.on.ca/en/whatwedo/types_liquor.aspx>
9 Alcohol and Gaming Commission of Ontario. 2013.
<http://www.agco.on.ca/en/whatwedo/advertising_liquor.aspx>
10Liquor Mart. 2013. <http://www.liquormarts.ca/regulatory-services/rules-regulations>

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Saskatchewan
The Saskatchewan Liquor and Gaming Authority (SLGA)11 is the main distributor
of and sole licensing agent for the sale of beer in Saskatchewan. To sell beer in
Saskatchewan it is not necessary to have a brewery located in the province, however
all beer must be sold through the SLGA.
Alberta
Within the province of Alberta, liquor stores are completely privatized. Alberta has
its own way of controlling the movement of beer into its province. The Alberta
Gaming & Liquor Commission (AGLC)12 establishes the rules and defines the range
of public establishments in which beer can be sold or consumed. It registers Brick
Brewing Co. as a beer supplier within Alberta and establishes policies and
authorizes operators for the warehousing and distribution of liquor products in the
province.
2.4 – Licensing and Franchising
There are no plans for Licensing and/or franchising
2.5 – Customer Benefits Offered by Product
Brick Brewing Company’s Laker Beers offer a variety of benefits to the flowing
customers:
Distributors
The benefits offered to the retail outlets that carry Laker Beers are:
 Canadian Product: Because Brick is a Canadian based company, retailers
are able to fulfill a portion their requirements to carry domestic products by
selling Laker products. This will encourage Canadians to support domestic
products and therefore driving sales.
 Value Priced: The price point for Laker beers is a benefit to retailers because
it allows them to sell at a lower price to the consumer. This is key because
there has been a shift of consumption from imported beers to cheaper
domestic beers due to consumer’s sensitivity to price.
 Award Winning Beers: The fact that Laker beers have won numerous
awards is an indicator that Laker products are of good quality for being
considered a value beer.
 Promotions: Brick frequently offers promotions such as extra cans, in store
giveaways, and contests. This works as a pull strategy for drawing in the end
user.
 Proven Success: Brick already has other products, such as Seagrams coolers
and Waterloo beers, in the new regions. This proves to the retailers that
Bricks has a successful business model and experience.
11 Saskatchewan Liquor and Gaming Authority. 2013. <http://www.slga.gov.sk.ca>
12 Alberta Gaming and Liquor Commission. 2013.
<http://www.aglc.gov.ab.ca/liquor/warehouseanddistribution.asp>

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Final Consumer
 Canadian Product: For the Canadians who want to buy domestic products,
Laker is the perfect choice as it is Canada’s largest Canadian owned brewery.
 Value Priced: Laker beers price point benefits the growing proportion of
Canadians who are looking for a drinkable beer at a reasonable price.
 Award Winning: The fact that Laker beers have won numerous awards
shows the consumer that they are getting an affordable beer that has not
sacrificed too much quality.
 Promotions: The various promotions that Brick puts on give customers
extra value for their money.
3.0 – Market Analysis
3.1 – Target Market Profile
Primary Target Market
The primary market of Brick is beer stores or liquor stores, either owned by
government or private located in urban and suburban areas in Ontario, Manitoba,
Saskatchewan and Alberta. The following section provides information about
selected target market with geographic, demographic and behavioral
characteristics.
Geographic:
 Locations: Urban and suburban area
o Manitoba: Winnipeg and Brandon
o Saskatchewan: Saskatoon and Regina
o Alberta: Calgary and Edmonton
Demographic
 Industry NAICS code are 445310 Beer, Wine, and Liquor Stores (Alcoholic
Beverages)
 Provincial and private-owned
Behavioral
 Buying behavior: new buy, modified rebuy, and straight rebuy
 Distribute multiple products
 Regular and continuous buying patterns
 Benefit looking for are quality, customer service and price (profitability)
Secondary Target Market
The secondary market of Bricks is Urban Young. Urban Young are the tech-savvy
singles and couples living in downtown area. These university-educated young
people are less than 34 years old and just entering the workforce, from lower-
middle to upper class and white collar to services sector jobs. Without family

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obligations, they’re able to rent decent apartments and lead a hip, progressive
lifestyle. They are typically night owls who frequently go to bars, cinemas and music
festivals.
Geographic
 Winnipeg and Brandon in Manitoba, Saskatchewan, Calgary and Edmonton in
Alberta
 Urban and suburban area
Demographic
 Male and Female
 Age 19-34
 Urban Young also known as Generation Y and Millennial (1977-1994)
 The total population for age 19-34 in the chosen area is 3,516,605
 There are 2,645,015 male and female age 19-34 in Ontario
 There are 141,780 male and female age 19-34 in Winnipeg and in 12,060 in
Brandon, Manitoba.
 There are 222,775 male and female aged 19-34 in Saskatchewan
 There are 275,115 male and female aged 19-34 in Calgary, 219,860 in
Edmonton, Alberta13
Psychographic
 Trendsetters, early adopters
 Urban Young are adventurous beer drinkers, they are willing to try new
beers
Behavioral
 Partial brand loyal and brand switchers
 Non user, ex-user, prospects
 Less than 10 percent of Urban Young learn about beer from ads14
13 “Stats Canada”, 2013, <http://www12.statcan.ca/census-recensement/2011>
14 “$1 Billion in beer advertising down the drain”, What the Gen, 2013, <http://www.genhq.com/1-
billion-beer-advertising-down-drain>

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3.2 – Total Target Size
The target market for Brick is distributors and secondary market is end users
located in Ontario, Manitoba, Saskatchewan and Alberta. The chart below is the
potential sales volume for Brick Brewing Co.
2012 2013 2014 2015 2016
Total Volume
(million liters)
2,348.8 2,352.3 2,352.4 2,348.2 2,341.0
Brick Brewing
market share
1.7% 1.8% 1.9% 2.3% 2.5%
Brick Brewing
Co. estimate
volume
(million liters)
39.93 42.34 44.70 54.01 58.53
Figure 3 – Forecast Volumes and Sales of Beer: Total Value 2014-2016
3.3 – Trends
Spending on fine dining and casual dining increase
 Urban Young’s spending on fine dining has increased 2% and casual
spending has increased 19%, while other generations’ spending decreased.
This trend indicates that they pursue for the finer things in life, and shows a
shift in spending priorities. 15
Highly influenced by word-of-mouth when choosing a beer
 When it comes to beer, Urban Young are five times more likely to be
influenced by word-of-mouth than other promotional efforts. Studies show
that recommendations from friends, wait staff, and bartenders are important
to them when it choosing the beer.
 Less than 10% are influenced by advertisements into drinking a specific
brand and flavors; the majority of Urban Young say that advertising “does
not” or “has not a lot” of impact on their beer selection. 16
High online engagement rate
 They are keen to digitally engage with their favorite beer brands; 41% of
Urban Young said they had interacted with a beer brand or brewery online.
15 “Gen Y Fine Dining Spending Increases”, Full-Service Restaurants Magazine, 2013,
<http://www.fsrmagazine.com/finance/gen-y-fine-dining-spending-increases>
16 Granese, N, 2012, Media Post, <http://www.mediapost.com/publications/article/183774/millennials-seek-
adventure-and-engagement-from-the.html>

17
3.4 – Estimated Company Sales and Market Size
Canada
Laker Beer Sales
($)
Sales Growth
($)
Sales Growth
(%)
Market Share
(%)
Sales from
Market Growth
($)
Sales from
Geographic
Expansion ($)
2012 $46,709,460.00 $(1,246,021.00) (2.67) 1.5 $(1,246,021.00) $-
2013 $47,690,359.00 $980,899.00 2.10 1.70 $980,899.00 $-
2014 $51,315,293.00 $3,624,934.00 7.60 1.75 $2,384,517.00 $1,240,417.50
2015 $55,735,769.00 $4,420,475.00 8.61 1.80 $2,565,764.00 $838,874.00
2016 $61,487,314.00 $5,751,544.00 10.31 1.85 $2.786,788.00 $2,318,524.00
For detailed break down of market size and monthly sales by province see sales
assumptions, section 9.5.
3.5 – Rules of Purchase
Brick defines their customers in two different categories: the distributor and the
end user. The distributor will include retail locations within Ontario, Manitoba,
Alberta, and Saskatchewan and the end user will include customers that purchase
Brick’s products at the various retail locations. Brick distributes its products to
retailers that then sell to the end consumer.
The Distributor
There are many crucial rules of purchase that must be met prior to the sale to
various distributors. The key to attracting distributors is to prove to them that
Brick’s products have high sales potential and high sales volume. The distributors
must acknowledge a potential high demand for Brick’s merchandises for them to
purchase the brewery’s products and sell them within their retail stores. The
distributors and Brick Brewing Co. must come to an agreement with methods of
payment and payment terms. If the distributor delays payment, the brewery may
have to seek additional loans to cover the extended payment terms.
Brick must also be capable of completing fulfillment as a rule of purchase for the
distributor. This includes transportation, storage, and delivery. Brick may have to
provide warehousing, provide just-in-time delivery, and produce the minimum
order quantity for the distributor. Furthermore, the Canadian Government
influences the amount of Canadian-produced beer products that are available to
end consumers in retail stores. This is considered another rule of purchase for the
distributor. The distributor must purchase a certain amount of Canadian beer to
adhere to the Canadian Government’s regulation, thus giving Brick’s an advantage
over import competitors.
The amount of Slotting allowance paid by each brewery can influence a retailer’s
decision to carry a product and can sometimes cause them to favor certain brands.

18
Slotting fees are paid by manufactures in order to obtain the patronage of retailers,
making them more inclined to sell a manufacture’s product when there is additional
compensation. These payments are to retailers for stocking and display of a
company’s product. Equally important to note are licensing and regulations as
rules of purchase. Government regulations require that all beer sold in Canada has
specific label requirements. Brick would not be able to sell their products to the
distributors if specific licensing and regulations are not met.
The End User
The rules of purchase for the end user will be based on five main factors. Brick
Brewing Co.’s products must be available in various retail locations such as “The
Beer Store”, privately owned retail stores, and government owned Liquor Marts.
The consumer must also be aware that Brick’s products are high quality in taste.
This is the most important rule of purchase to returning customers. Consumers are
additionally more inclined to purchase if there is attractive packaging that is
aligned with the company’s local, Canadian competitive edge. Various promotions
that are offered with Brick’s products also act as a rule of purchase for the
consumer. Bonus packs, premiums, and sweepstakes will all attract the consumer to
purchase Brick’s products at the retail locations. Pricing is also an extremely
important factor. Since Brick will be targeting students and young professionals
(ages18-30) as the end consumer; the products being sold must be value priced.
4.0 – Competition
4.1 – Direct Competitors – Current and Future
Labatt
Labatt is the other titan in the Canadian beer market claiming a 43.2% share. Their
parent company is Anheuser-Busch InBev which is a global brewer that generated
more than 39.8 Billion USD in 2012. They have many brands under their belt and
they leverage this to compete in multiple categories.
Labatt products that compete directly with Bricks include:
 Wildcat
 Busch ice
 Busch light
 Busch lager
 Lakeport Lager
 Lucky Lager
 Lucky Extra
Labatt, with the help from parent company Anheuser-Busch InBev, has established
distribution lines across Canada and used aggressive marketing strategies to make
sure their brands on the forefront in Canadians minds17 18.
17 Labatt. 2013 <http://www.labatt.com/company/#province>
18 Brick Brewing Co. Limited 2013 2013 Annual Information Form

19
Molson Coors
Molson Coors are one of the “big two” companies that control approximately 85% of
the market. They are a multinational company with a 42.3% share in the Canadian
beer market. Molson Coors has purchased and created many sub companies to
compete in every category of beer.
Molson Coors products that compete directly with Bricks include:
 Keystone Ice
 Keystone light
 Keystone Lager
 Carling Ice
 Carling light
 Carling Lager
 Milwaukee’s Best Ice
 Milwaukee’s Best light
 Milwaukee’s Best lager
 Miller 64
 Bohemian
 Molson Dry
 Old Style Pilsner
Molson Coors has extensive supply and distribution lines that make their brands
available across Canada. They also heavily advertise to position each brand in its
own unique way to the Canadian market. Molson Coors is always looking for new
companies and/or products to strengthen their lines. At the moment, Molson Coors
is focusing on the craft beer market.19 20
Sleeman
Sleeman is the third largest brewery company in Canada with a market share of
approximately 6%. Sleeman is owned by Sapporo and have purchased many beer
brands and portfolios such as Pabst to further their hold on the Canadian Market. By
expanding their portfolio they are able to effectively penetrate the market on a
multitude of price ranges.
Sleeman products that compete directly with Brick’s are:
 Pabst Blue Ribbon Light
 Pabst Blue Ribbon 5.9
 Pabst Blue Ribbon
 Old Milwaukee
 Old Milwaukee light
 Old Milwaukee ice
 Colt 45
 Olympia
With the financial help and experience of a multinational company like Sapporo,
Sleeman was able to carve out a decent size of the Canadian market. Strategies like
19 Molson Coors. 2013. <http://www.molsoncoors.com/en/Brands.aspx>

20
rolling out extensive marketing campaigns and designing new types of beer (e.g.
Clear Beer) have paved the way to being an established contender in Canada.21 22
4.2 – Indirect Competitors – Current and Future
Brick Brewery Co. indirect competitors are defined as other options consumers can
buy to satisfy their alcohol needs.
Ready to Drink/Cooler/Cider
These are mixed drinks that are ready to enjoy straight from the can. Examples of
these include products company Mark Anthony makes: Mikes Hard Lemonade, Palm
Bay and Ciders They feature an assortment of flavors at comparable prices to Bricks
products. 23
Wine
As stated above wine is becoming more and more popular amongst Canadians. Wine
comes in all types and prices much like beer. Also, wine has steadily taken market
share away from beer in recent years as consumer preferences constantly evolve.
Examples that compete with Brick is Yellowtail and Skinny Girl which offer a variety
of flavors at comparable prices.
Spirits
Spirits are defined as hard liquor that feature higher percentages of alcohol. Absolut,
Smirnoff, Captain Morgan’s, and Bacardi are just a few examples of products that
compete against Brick to be the consumer’s drink of choice.
4.3 – Substitute Products
Contending substitutes for beer will be non-alcoholic drinks such as non-alcoholic
beers, soft drinks, juice, water, and hot drinks. The two possibilities in which our
target market may experience where they decide between beer or a substitute
product is when there is a choice between venues and situations, such as relaxing in
their private residence (and would not bother to leave the location) or socializing in
a licensed establishment. The key reason as to why substitute products are chosen
over alcoholic drinks in licensed establishments are responsible driving conviction
and the risk of being charged for penalty fees.24 All of these substitute products are
competitive in their respective markets where prices are conveniently similar and
low, where most of the consumer's final choice is strongly focused on personal taste
and possible aesthetics. Choices of alternatives are:
 Sodas- cordials, craft ales, and specialty beers that contain little/no alcohol
has been popular with the Urban Young.
21 Pabst Brewing Co. 2013. <http://pabstbrewingco.com/beers>
23 Mark Anthony Brands. 2013. <http://www.markanthony.com/portfolios/specialty.aspx/Canada>
24 ICBC, 2013 < http://www.icbc.com/road-safety/safer-drivers/impaired-driving>

21
 Juice- healthy lifestyles and consumption has been an ever-growing trend,
especially within Urban Young.25
 Coffee- popularity of the on-demand pod systems has successfully penetrated
the at-home consumers.
 Tea- apart from the possibility of making tea pods, variety of blends
successfully customize to customer's tastes.26
 Mocktails- designing drinks suitable to certain social settings, mocktail are
similar cocktails, in spirit. 27
4.4 – Competitive Edge
By introducing their products into new geographic locations that are within a highly
saturated industry, it is crucial for Brick Brewing Co. to set itself apart from their
competition.
Some similarities that Brick Brewing Co. shares with other value beer producers
are:
 The price point of their products are similar
 The retail locations each company’s beer is offered at
 Variety of flavors (7 or more different tastes)
Brick Brewing Co. Limited’s rich history of local, Canadian beer production within
Ontario provides a product edge. Brick Brewing Co. is the only Canadian-owned
brewery compared to its direct competitors and continues to stay close to its
national roots. Its strong Canadian heritage offers credibility and assurance to
distributors and end consumers that they will be provided with authentic, high
quality tasting, locally brewed beer. In addition, Brick Brewing Co.’s valued price
beer category has obtained many gold and silver awards recognizing the Laker
brand’s high quality, Canadian brewed taste. These various awards provide
credibility to Brick’s value priced Laker brand as a local brewed beer and sets itself
apart from their competition.
25 Euromonitor International. 2013. Food/Vegetable Juice in Canada.
26 Euromonitor International. 2013. Hot Drinks in Canada.
27 DrinkAware.id < http://drinkaware.ie/index.php?sid=7&pid=584>

22
4.5 – Competitive Analysis Chart
Company # Of Directly
Competitive
Products
Canadian
Owned
Ontario Manitoba Sask. Alberta Market
Share
Total Sales Price
Point
(per 24)
Brick Brewing Co. 7   Year 1 Year 2 Year 3 1.7% $74,142,000 $29-$35
Labatt 6      42.2% $1,869,882,000 $29-$35
Molson 13      37.7% $1,670,487000 $29-$35
Sleeman 8      4.6% $203,826,000 $29-$35

23
5.0 – Marketing Strategy
The marketing strategy will be focusing on aggressive geographical expansion for Laker
brand while maintaining the current sales of Waterloo brand and Seagram Coolers.
5.1 – Positioning
Brick is the largest Canadian-based brewery in Ontario. For the past two decades,
Brick has enjoyed consistent success in catering to Ontario beer drinkers. In
correspondence to the company growth, Brick is now ready to bring that success to
a wider audience. As foreign beer brewers dominate the current market, Brick will
use the differentiation position strategy to emphasize the fact that their product are
produced and packaged in Ontario, Canada.
Brick will be positioned as a 100% Canadian owned Ontario brewer that offers
award-winning beer brewed in Ontario with a gold-medal quality at an affordable
price to beer drinker across Canada.
5.2 Sales Strategy and Tactics
The sales efforts will be directed to the distributors of the company’s product,
specifically retailers. Because of the complicated regulation issues in different
province across Canada, Brick will adopt a hybrid sales organizational structure,
which combines geographical and customer sales structures. The sales department
will first be separated into different sales teams that serve customers in specific
geographic area and then within each area. By using this structure, it can minimize
travel time, expenses, duplication of selling efforts, and provides more specialized
customer support and knowledge to buyer.28This design is implemented to allow
Brick to establish long-term equity and further our expansion into different
distribution channels later on.
As stated previously, geographic expansion for Laker brand will be the focus for the
next 3 years. The Brick’s sales team will manage and maintain its current
relationship with marketing channels to ensure availability of product to the
consumers.
In the beginning of every year when Brick start to enter a province, a sales manager
and assistant sales manager will be dispatched from head office. They will need to
be experienced and fully understand the products. The sales manager will be in
charge of recruiting and training local representatives who are familiar with
provincial legislations and regulations. Local sales representatives will be the link
between the firm and customers. They will create value by easing the customer
buying process and provide follow up services. The use of relationship selling will
build ties to customer, based on a salesperson’s attention and commitment to
customer need over time. In order to build the long term relationship, sales
28 Crane, F. G., Kerin, R. A., Hartley, S. W., & Rudelius, W. ,2011, Marketing, McGraw-Hill Ryerson.

24
personnel play a critical role in ensuring customers perceive a positive experience
with the company and its brands.
With the assumption that sales will be maintained in Manitoba for the next year
with the fully trained local sales representatives, the two sales managers will be
moving to the next expansion in Saskatchewan, then Alberta on the third year, with
the same sales strategy. This will be an ongoing learning process for both managers
and Bricks since demand and buying criteria may vary in different provinces.
Alterations to sales targets will be made accordingly after the first year of expansion
per province.
5.3 Advertising and Promotion Plans
The objective of advertising is to increase the awareness and positive image of the
brand. The possibility of the target audience preferring Brick’s over competitors will
be much higher after encouraged trial purchase. A pull strategy will be implemented
by directing the promotional efforts at end users to encourage them to demand the
retailer for Brick’s products.
Advertising
In the next three years, the marketing department of Brick will create and release a
major campaign every year that focusing on bring the gold-medal-winning beer to
other provinces.
Out-of-home media
A large proportion of the advertising will be found out-of-home, around where the
target market is able to purchase Brick’s products. Impulse purchases will increase
the sales. Out-of-home media creates a continuous connection in the marketplace by
fusing a brand into the daily activities of consumers. 29Transit media will be used
and the advertisements will be placed in bus shelters and on the buses. The other
out-of-home media that Brick is going to use is place-based media. Brick will also try
to place the advertisements in men’s rooms at local bars and restaurants.
Sales Promotion
Brick will use sales promotion activities to provide distributors or the end users an
extra value to buy the products.
Consumer Sales Promotion
The use of consumer sales promotions techniques is to encourage the end users to
try Brick’s product, induce current consumers to repurchase and establish ongoing
purchase patterns or increase product consumption.30
29 “Out-Of-Home Consumer connection 24/7”,2013, Out-If-Home Marketing association of Canada: <
http://www.omaccanada.ca/Sites/omac/multimedias/website%20content/2012/brochures/omac
%20consume%20connection%2024%207%20brochure_en.pdf>
30 Belch, G. E., Belch, M. A., & Guolla, M. A., 2011, Advertising & Promotion. McGrow-Hill Ryerson.

25
Bonus packs
Brick will offer the consumers an extra amount of a product at the regular price. For
example, buy a half dozen case and get one can for free or buy a dozen cases and get
two cans for free. By using this tactic, Brick can give the consumer some extra values
without having to get involved with complicated coupons or refund offers.
Premiums
By offering premiums to the consumer, Brick will be able to build the brand image.
It can also encourage trade support and gain in-store displays for the brand and the
premium offer.
Sampling
Brick will offer and pass 1,000 4oz bottles of Laker beer to the customers in every
beer stores that carry Brick’s products when Laker is first introduced to the new
market. This sales promotion tactics will help Brick to generate trial purchase and
establish the product brand.
Sweepstakes
There will be one sweepstake offered per year, for a total of three, in order to
promote the Laker products entry into each of the new provinces. These
sweepstakes will begin in January of each year and will run until May. The winner
will be randomly chosen and will win a trip for himself or herself and three friends
to visit the Brick. In order to enter the contest individuals must simply enter at the
Brick website.
Contests
Brick will be holding eight YouTube contests per year over the three-year plan. The
contests will consist of entrants submitting a self-made commercial that is 24
second long and promotes Laker Beer’s entry into the new province. Participants
must be residents of the province where Laker is entering in the particular year.
Monthly winners will be chosen by head office and will be mailed a certificate for a
free 24 cans of Laker Beer. Each of these contests will have a theme and will aimed
to have the participant highlighting how Laker Beer is perfect for the occasion. At
the end of the year there will be a grand prize of $1000. The themes will be:
 February – Welcome to the new region
 April – Easter
 July – Canada Day
 August – Fun in the Sun
 September – Back to school
 October – Halloween
 November – Movember
 December – Merry Christmas

26
Trade Sales Promotion
Trade sales promotion tactics will be used by Brick to encourage retailers to give
shelf space to Laker beer. After first year of supplying Laker Beer, retailers will be
introduced to the other Brick’s brands (Waterloo Beer and Seagram Coolers).
Trade Allowances
Quantity discounts, which are reductions in unit costs, will be given to customers
who buy larger quantities. Seasonal discounts will give to the distributors that order
the beer (make the payment) earlier than the high demand period. To encourage
distributors to pay cash quickly, Brick will offer them a cash discount at 1/15 net 45.
Point of Purchase (POP) displays
The point-of-purchase displays will be distributed to government and private
owned liquor stores that showcase Brick’s products and near the entrance. Since
two-third of consumers made their purchase decision in the store, the displays can
be a trigger to the impulse buying decisions.
Internet Marketing
Website
Brick will increase its online presence to help generating awareness of the brand
and products among target audience. Brick will be using their current website
www.brickbeer.com to provide people with detailed information regarding products,
events, and promotions. The event marketing function will be added to the website
to support sales promotion activities.
Social Media
Brick will be using four social media tools: Facebook, Twitter, YouTube and
Instagram. Because the target market contains the highest percentage of Internet
users, the tools will be used to effectively educate the target audience, create buzz,
and interact with their customers. Brick will benefit from this use of communication
by gaining information on audience participating in the promotion and analyze foot
traffic. The marketing team at Brick will be responsible for regular website
maintenance and updates.
Banner Ads
Banner ads will be used to advertise Brick’s products and the related promotional
events and contest that will be held. The banner ads will be located on major social
networking websites, Facebook and YouTube. The ads will direct consumers to
Brick’s website where they can learn about the products, the company, and the
latest news or events. In the next three year, Brick will purchase 1,000,000
impressions to place ads on Facebook and YouTube.

27
5.4 Advertising and Promotion Calendar
Red is the month Brick Brewing Co. will implement the plan
Media Budget Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Advertising
Out-of-Home media
Transit Transit Shelters
(4 weeks media cost/panel + production fee/panel)
x numbers of panel x 6 months
=($650+$75) x 100 x 6 x 2= $435,000
King Bus Posters
(4 weeks media cost + production fee) x 6 months
($43,106 + $6,000) x 6= $294,636
Total: $729,636 x 2 provinces=$1,459,27231
Place based Bars and restaurants advertisements
Media cost $6250 x 6 months= $375,000
Production cost $1,000 x 6= $6,000
Printing fee $0.19 x 10 copies x 50 stores x 6
months= $570
Total: $381,570 x 2 provinces= $763,140
Sales Promotions
Consumer Sales Promotions
Bonus packs bonus packaging fee (labour cost)32
$100 (first 40 cases) + $0.5/case x (10,000-40) x 6
months= $30,480
Bonus beer $0.3 x 10,000 cans= $3000
Total: $33,480 x 2 provinces= $66,960
Premiums Jan/Feb- Beer glasses
$1.57 x 100,000= $157,000
Jul/Aug- Summer glasses, cap
31 Flack, D, 2010, Ever wondered what is cost to advertise on TCC,
<http://www.blogto.com/city/2010/10/ever_wondered_what_it_costs_to_advertise_on_the_ttc/>
32 “Marketing at Retail”,2013. Liquor Mart, <http://www.liquormarts.ca/sites/mlcc_public_website/files/pamphlet/Marketing-at-Retail-Manual-F2014_0.PDF>

28
$0.72 x 50,000= $36,000
$1.46 x 50,000= $73,000
Oct- Beer glasses
$1.57 x 50,000= $78,500
Dec- Knit Beanie
$3.7 x 20,000= $37,000
Total: $381,500 x2 provinces = $763,00033
Contest First place Prize $1,000
8 participation prizes- 24 cases beer
$17.95 x 8 = $1,143.6
Total: $2,143.6
Sweepstake 1 Winner (4 person)
4 star Hotel cost $145/nights x 2 rooms x 2 nights=
$580
Flight ticket $515 x2 x 4= $4,120
Total: $4,700
Trade Sales Promotions
Trade allowances
In-store sampling In-store sampling program
Marketing representative salary $15/hour x 8
hours/day x 14 days x 202 stores= $339,360
Sample beers $0.3 x 1,000 x 202= $262,600
Total: $601,960
POP displays Impact display program
Tier 1-4 Feb, Mar, Jul, Aug, Oct, Nov ($4,600 x 4
+$3,500 x 2) x 100= $ 254,000
POP signage (20” H x 25” W)
Design fee/ad $500 x 12= $6,000
Colour printing $0.19 x 12 months x 202 stores=
$460.56
Total: $260,191.9034
Internet Marketing
Website Website design $5,980
33 “4 All Promos”, 2013,<http://www.4allpromos.com>
34 “Marketing at Retail”,2013. Liquor Mart, <http://www.liquormarts.ca/sites/mlcc_public_website/files/pamphlet/Marketing-at-Retail-Manual-F2014_0.PDF>

29
Website maintenance fee $1,000
Hosting $200
Total: $7,180
Social Media free
Banner Ads $50/cost per thousand (CPM)x 2,000,000=
$100,000
Public Relations
Frosh Fest Sponsorship Sponsorship $35,000
Key chain bottle opener $0.87 x 4,500=$3,915
Total: $38,915
Brick Young Entrepreneur
Competition
Sponsorship $25,000
First Prize $10,000
4 star Hotel cost $145/nights x 2 rooms x 3 nights=
$870
Flight ticket $515 x2 x 3= $3,090
Dinner with executives $1,500
Second Prize $5,000
Third Prize $2,000
Total: $47,460
GRAND TOTAL: $3,975,007.5

30
5.5 – Pricing Strategy
From a customer’s perspective, price is often used to indicate value when it is
compared with similar products. Having a strong pricing strategy that successfully
counters the customer’s perception of product value with regards to price is one of
the most important things that would help Brick to achieve its goal.
To better cater different customer, Brick will adopt flexible pricing policy that
involves setting different prices for products depending on individual buyers and
purchase situations. In the overheated beer market, Brick will keep using the below-
market pricing strategy for Laker brand. In regards to price-quality perception, the
advertising campaign will then be used to strengthen its position as an affordable
gold-medal-winning beer. As Brick estimated the price that the ultimate consumer
would be willing to pay for its product, it will then work backwards through
markups taken by its distributors to determine what price Brick can charge
distributors for the product.
In order to give the members in the distribution channel some incentive to carry the
products as well as order more products, Brick will provide several discounts and
allowances to the distributors. The use of quantity discounts which are reductions in
unit costs for a large order encourages customers to buy larger quantities. Seasonal
discounts will nudge distributors to order earlier, as oppose to during the high
demand period. To encourage distributors pay the company cash quickly, Brick will
offer them cash discounts. For example, Brick can send a bill quoted at $10,000,
1/10 net 30. Customers in the distribution channel will qualify for promotional
allowances if they carry out certain advertising or selling activities to promote
Bricks’ products.
5.6 Channels of Distribution
The beer distribution system in Canada is strictly ruled and regulated by the
government, with each province of Canada setting its own regulations. The free
trade in Canada has made beer easier to distribute from province to province.
Products of Brick Brewing Co. are sold primarily in Ontario. Brick brewing co.
currently distribute its packaged beer occurs through The Beer Store (TBS) and the
Liquor Control Board of Ontario (LCBO) in Ontario. Consumers can purchase the
Company’s products through multiple channels in Ontario. Seagram Coolers are sold
through the provincial liquor boards and TBS in Ontario.
Brick will maintain its relationship with current customers. In addition, as Brick is
going to expand its geographic presence to make the Laker brand available in
provinces that considered having high growth potential, which are Manitoba,
Saskatchewan and Alberta.
Brick will distribute its products through provincial liquor store and establishments
with liquor licenses that located in major cities in Manitoba, Saskatchewan and
Alberta. In Manitoba, the beer distribution is mainly regulated by the Manitoba
Liquor Control Commission (MLCC). Brick Brewing Co. will need to get an approved
listing from the MLCC and choose a few distributors to carry Lakers Beer.

31
Distribution in Saskatchewan is controlled by the Saskatchewan Liquor and Gaming
Authority (SLGA). All beer must be sold through the SLGA, but Brick can arrange its
own delivery to the distributors. Alberta is completely privatized regarding to beer
distribution. There’s no provincial owned liquor store at the moment. Brick will sell
to the distributors who has liquor license. 35
Before going to the targeted province, the administrative department will obtain all
the permissions and licensed that will be needed to allow to sell Brick’s products to
those provinces. Highly trained sales force will utilize push strategy to persuade the
current distribution partners that carry Waterloo Beer and Seagram Coolers to put
Laker Beer on the shelf. Moreover, local sales representatives will also approach
local licensed establishment to make Laker brand available in their store.
5.7 – Public Relations and Publicity Plan
Public Relations
Sponsoring University Frosh Festivals
Brick will be sponsoring a major event when entering a new market to get Laker
Beer into the target market hands. The first event Brick will be sponsoring is the
University of Manitoba’s Frosh Music Fest. Every year the student association at the
university holds an event in the university’s stadium that attracts thousands of
students. Brick will offer a free beer with their ticket purchase and supply beer that
the attendees can buy throughout the night. As incentive Brick will be giving
$25000 to the student associations to secure its beer at the event, if required.
Through this sponsorship, Brick will be able reach the target market by letting them
sample Laker beer and further Bricks exposure in the new market. As a result, the
event will strengthen Brick’s positioning strategy as being the only Canadian owned
company in its category by supporting Canadian schools and students. In
Saskatchewan, Brick will be sponsoring the University of Saskatchewan Frosh week
and University of Alberta Frosh Festival in Alberta.
Sponsoring a Young Entrepreneurs of Canada Contest
Brick will sponsor a young entrepreneurs’ of Manitoba, Saskatchewan, and Alberta
contest. Brick started as a few young Canadians with a dream, an idea, and can of
beer and is a strong believer is growing the Canadian economy. Brick intends to
support Canadian students with the same passion and drive that made Brick the
successful business it is today. College and university students can apply to pitch a
business idea to a panel of judges. This contest will be held in the first few months of
entering each new province. The winners will be given a round trip to Ontario which
will include a tour of Bricks award winning brewery and an exclusive dinner with
some of the top management team. In addition, they will receive $10,000 cash and
exposure from Brick by being promoted through all of their various channels. The
35 Hughey, R, 2013, Beer distribution in Canada, <http://www.realbeer.com/library/authors/hughey-
r/distribution.php>

32
trip will include hotel and will last two days and three nights. The contest will be an
effective way for Brick to position itself as the only Canadian owned brewery in
relation to its competitors and also
Press release
Brick Brewing Co. will use the press release as a communication channel to inform
employees, investors, suppliers, customers and public with the updated news of the
company.
6.0 – The Management Team
6.1 Key Management Team Profiles, Qualifications, and
Responsibilities
George H. Croft
George H. Croft36 is the current President and Chief Executive
Officer of Brick Brewing Co. as of May 12, 2008. Croft has
extensive knowledge of the beer industry, specifically in the
premium and value segments. Mr. Croft started his career in
the beer industry with Labatt Breweries of Canada where he
held various senior management positions, including
President of Oland Specialty Beer Company. He then joined
Lakeport Brewing Income Fund as President and CEO where
he was accountable for all of the company’s operational and commercial matters. In
addition, he served as a member of The Beer Store Executive Board and the Brewers
of Ontario Executive Board. His educational experience includes a Bachelor of
Physical Education from the University of Alberta and graduation from the DeGroote
School of Business, Chartered Director Program.
Sean Byrne
Sean Byrne37 is Brick Brewing Co.’s Chief Financial Officer.
Mr. Byrne holds over 20 years of senior financial
management experience at both enterprise and publically
traded companies. His senior financial leadership roles
include five NASDAQ and NYSE-listed companies. Before
being appointed CFO of Brick Brewing Co., Mr. Croft was
Vice President Finance at RR Donnelly in Mississauga, a $10
billion global company. His widespread financial and
36Bloomberg Businessweek. 2013.
<http://investing.businessweek.com/research/stocks/people/person.asp?personId=25285366&tick
er=BRB:CN>
37Yahoo Finance. 2013. <http://ca.finance.yahoo.com/news/brick-brewing-announces-appointment-
sean-100000123.html>

33
management experience is a key success factor to the execution of Brick’s growth
strategy. Sean Byrne holds a Master of Business Administration from Heriot Watt
University, Edinburgh Business School and is a Certified Management Accountant.
Russell Tabata
Russell Tabata38 is the current Chief Technical Officer as of
May 25th, 2009. Mr. Tabata is accountable for all operational
aspects of the business. Mr. Tabata has over 20 years of
advanced experience in all aspects of the food and beverage
business. Mr. Tabata held progressively senior roles at
Molson Coors including Director, Reliability and Process
Improvement, Director Operations, and
Packaging/Engineering Manager. But most recently, Mr.
Tabata held the position of Senior Vice President Operations/Chief Technical Officer
at Lakeport Brewing.
Nick Relph
Nick Relph39 is Brick Brewing Co.’s Vice-President of
Marketing & Sales. Mr. Relph is currently in charge of the
leadership and accountability of the commercial function of
Brick. In addition, Mr. Relph supervises the Ontario Sales
team and partner agencies. This comprises development,
oversight and execution of annual sales strategies and
marketing plans as well as market development and
assessment of current product lines and opportunities.
He has worked with numerous leading alcoholic beverage brands, including his
most recent experience as Director of Marketing, North America for Carlsberg. Mr.
Relph also has experience as the General Manager of Things Engraved and
Personally Yours, where he managed a national chain of 121 locations and was
responsible for delivering revenue and EBITDA objectives through stores and
operations. Mr. Relph is a graduate of the University of Manitoba.
6.2 Board of Directors
Peter J. Schwartz
Peter J. Schwartz40 is President of Laurence Capital Corporation, a Waterloo-based
merchant bank. Mr. Schwartz is also a General Partner and founder of Laurence
Development LP, a diversified real estate development company. He has spent most
38Newswire. 2009. <http://www.newswire.ca/fr/story/446677/brick-brewing-announces-
appointment-of-chief-technical-officer>
39 Yatedo. 2013.
<http://www.yatedo.com/p/Nick+Relph/normal/f1434e99662c91d698623cfd50d9ae37>
40Laurence Capital Corp. 2013. <http://www.laurencecapital.com/Profile/Governance.html>

34
of his career in investment banking, and holds lots of experience within higher-level
executive positions. Peter holds an Honors Business Administration from the
University of Western Ontario and is also the Chairman of Rare Republic Inc.,
Chairman of Demeure Operating Company Ltd., and Partner of ArtBarn Media Inc.
Stan G. Dunford
Stanley George Dunford41 has been the Chairman and Chief Executive Officer of
Contrans Group Inc. since 1988. Contrans has been providing freight transportation
services since 1985. He has been Director of Contrans Group Inc. since 1988. In
addition, Mr. Dunford has been a Director of Brick Brewing Co. since June 2008 and
also serves as Director of the Ontario Trucking Association.
Edward H. Kernaghan
Edward H. Kernaghan42 has been the President of Principia Research Inc., since
October 2000. In addition, Mr. Kernaghan serves as an Executive Vice President of
Kernaghan Securities Ltd. and an Executive Vice President of Kernwood Limited. Mr.
Kernaghan has a multitude of experience in the capital markets as well as on other
public company boards. He has been a Director of Brick Brewing Co. since April
2004 and an Independent Director of Collicutt Energy Services Ltd. since 2004. Most
recently, Mr. Kernaghan became a Director of Exco Technologies Ltd. in January
2009.
David R. Shaw
David R. Shaw43 is the Founder and CEO of Knightsbridge Human Capital
Management Inc., a national human capital firm. Before founding Knightsbridge
Human Capital Management Inc., Mr. Shaw was President and CEO of Pepsi Cola
Canada Beverages where he was held for various levels of general management
responsibility and gained extensive international business experience for over 22
years. David R. Shaw currently sits on the Queen’s School of Business Advisory
Board, the Junior Achievement of Canada Foundation Board, the Amrop Board, the
Mother Parkers Tea & Coffee Inc. Board of Advisors and two publicly traded boards,
Fiera Capital Corporation and Brick Brewing Co.
Lawrence Macauley
Lawrence Macauleuy44 is currently retired and has 40yrs devoted to the beer
industry. Mr. Macauley began his career at Labatt Breweries of Canada after
completing his Honors Degree in Science and Applied Chemistry at the University of
41Bloomberg Businessweek. 2013.
<http://investing.businessweek.com/research/stocks/people/person.asp?personId=8486122&ticke
r=CSS:CN>
42University of Toronto. 2013.
<http://www.rotman.utoronto.ca/FacultyAndResearch/Faculty/ExecutivesInResidence/Kernaghan.
aspx>
43Kingsbridge Human Capital Solutions. 2013.
<http://www.knightsbridge.com/AboutUs/OurPeople/Bio/DavidShaw.aspx>
44 Microaxis. 2013. <http://www.macroaxis.com/invest/manager/BRB.TO--Lawrence_Macauley>

35
Waterloo. He was appointed Vice-president of Brewery Operations America and in
three years appointed Executive Vice-president and Chief Technical Officer. Mr.
Macauley retired in May 2005.
John H. Bowey
John H. Bowey45 serves as Senior Counsel at Deloitte & Touche LLP Canada and has
been its Chairman since 2006. Mr. Bowey was the Tax Practice Leader for South
Western Ontario and from 2001 to 2006 he served as the Regional Managing
Partner for South Western Ontario. Mr. Bowey has been involved with various
community organizations including the Cambridge Family Crisis Shelter, the
Cambridge Big Brothers Association and the Sunbeam Centre. Bowey received an
M.B.A. from the Ivey School of Business at the University of Western Ontario, and a
B.A. in Economics from Colby College in Waterville, Maine. He has been a Director of
Brick Brewing Co. Ltd. since September 2010.
George H. Croft is also part of the board of directors.
6.3 – Principle Advisors
There are no principle advisors for Brick Brewing Company.
7.0 – Operations
7.1 – Location
Bricks Brewery has a few locations around Ontario, which totals to two brewing
facilities and one distribution center. Their production facilities are well-established
breweries within both Waterloo and Formosa and the distribution center is located
at the more populated city of Kitchener, Ontario. Since the primary target market of
Bricks is alcohol retail locations and not consumers, the location of their distribution
center fulfills the need to be close to ingress and egress for ease of transportation
and loading. It is strategically located near the Canada-US boarder at the suburbs of
Ontario with easy access to the major highways.
Warehouse rentals are going to be required during the expansion. Rates for small
business mini-warehouses (200-300sqft) range from $2880 to $1700 at locations
close to their respectively largest city.464748 The central location will be in high
45 Bloomberg Businessweek. 2013.
<http://investing.businessweek.com/research/stocks/private/person.asp?personId=27713004&pri
vcapId=24914518&previousCapId=170260&previousTitle=BCE%20INC>
46 Kijiji. 2013. < http://edmonton.kijiji.ca/c-real-estate-commercial-office-space-Small-
warehouse-bay-for-lease-W0QQAdIdZ542528025QQfeaturedAdZtrue>
47 StorageMart. 2013 <http://canada.storage-mart.com/saskatchewan/saskatoon/portage-
avenue>
48 Kijiji. 2013. < http://winnipeg.kijiji.ca/c-real-estate-commercial-office-space-FOR-LEASE-993-
Portage-Avenue-Retail-Office-Space-W0QQAdIdZ543763915

36
traffic areas; in Manitoba, a location will be set up in Winnipeg, Saskatoon for
Saskatchewan, and Edmonton for Alberta. A one year lease will be initially signed at
the beginning of each fiscal year until further notice of increased demand
requirements and/or investing into purchasing a permanent warehouse space.
Fast and efficient transportation is crucial during Bricks first year in each province.
At the most expensive option of transportation and heaviest packaging, costs are
relatively affordable. Within the first year, $4,080,490 will be allocated to
transportation costs, $7,145,538 for year 2, and $16,343,644 for year 3.
7.2 – Capital Equipment Requirements
Bricks will not be requiring any special equipment during this three year plan. Since
they have invested extensively to their facilities during the previous years,
maximizing capacity comes first and foremost before any plans of asset portfolio
expansion and equipment rentals/purchases are to be set into motion.
7.3 – Labor Requirements
Brewery
More labor will be utilized to produce to full capacity. A safe assumption would be to
double the current payroll (similar skills and abilities will ensure double production
at the same quality), with the extra cash (currently running at 63% capacity) to
override the optimum production within each brewery.
Sales
Dispatched from Ontario, one senior sales managers will be required to handle
training and facilitating new representatives while an (assistant) junior sales
manager will be in charge of handling accounts, schedules, and locations
management. Sales within the first year will be ensured with a strong sales force in
Manitoba by hiring four sales representatives, three in Saskatchewan, and eight
when in Alberta.
Sales representatives will be hired locally so to help our managers understand the
local area and establish business relationships. Wages for sales representatives are
designed to be for goal-oriented. Base wages are lower than those on the 50th
percentile but bonuses will allow them to double their income if sales targets are
met. Once the year has ended and Bricks has successfully established itself within
the first year, the touring managers will leave for the next province, leaving one of
the sales representatives to be promoted as a junior sales manager. This newly
promoted sales manager will be managing the other sales representatives and hire
another one to take his previous position. This system will be implemented to all
three provinces covered in this expansion.

37
7.4 – Source of Supply
Bricks' malt and hops are bought at fixed competitive pricing on non-cancellable
purchase commitments with our current suppliers for the coming years and stevia
for their all-natural Seagram Coolers are currently supplied from Krisda. The
Company has been recognized and certified by the Global Food Safety Standard with
an A-level rating. The industry does not show any changes in material and Bricks
currently produce just enough for demand to keep costs low.
In this expansion, Bricks will increase their demand for raw material. This will allow
Brick to ask for a discounted selling price with their current supplier as well as
strengthen our relationships with them. By doing so will allow a chance for lowering
operational variable costs and solidify the equity of Lakers within the different retail
stores as a household brand.
7.5 – Production Process
Beer is brewed from a mixture of water, malt, hops, and yeast where raw materials
are generally stored in dry room temperature prior to production. Crushed malt and
boiling water are mixed to allow all the natural sugars from malt to seep into the
water, and then hops is added to give beer its flavor profile and initial bitter taste.
Yeast (either ale or lager) is then added to ferment the sugar to alcohol and carbon
dioxide, and then filtered out prior to canning. Once packaging is done, beer is then
refrigerated until retailers sell the end consumer.
Brew masters and key personnel will be required to stay on site when machines are
in use and to ensure quality is maintained in the individual batches. Hours of
operations are general and flexible, as long as production requirements are met
before shipping.
7.6 – Inventory Requirements
High seasons for Bricks are generally during the second and third quarter during the
year. Competitive production is still possible with seasonal small batch brews. This
will not only gauge consumer's changing taste throughout the year but combat low
sales volumes during the low season.
As the first quarter comes to an end, production volume will start increasing and, to
avoid stock-outs, possibilities of higher inventory cost are unavoidable. An
emergency storage of finished product will be on stand-by on a FIFO basis as
quantities sold for different provinces, as Brick’s expansion is still undetermined.
Sales representatives in the newly opened expanded provinces will be asked to be
held responsible up to ten cases of beer per representative. Distribution of
inventory will be determined within our Milestones section.

38
8.0 – Implementation Schedule
8.1 – Overall Schedule with Timelines
2014
Month Description
February Laker Bees introduced to Manitoba
Transit advertising introduced
Place based media
Promotional Items – Beer glass
Point of purchase displays
Sampling begins
Hire regional sales representatives
Sweepstakes begins
YouTube contest – Welcome to Manitoba
Press release
March Transit advertising
Place based media
Sampling
Press release
April Transit advertising
Place based media
Sampling
YouTube contest - Easter
Press release
May Transit advertising
Place based media
Sampling
Sweepstakes ends
Press release
Bonus beer
June Transit advertising
Place based media
Promotional items – Summer gear
Summer packaging
Sampling
Sweepstakes winner take trip and tour
Press release
Bonus Beer
July Transit advertising
Place based media
Sampling

39
YouTube – Canada Day
Press release
Bonus Beer
August Transit advertising
Place based media
Sampling
YouTube contest – Fun in the sun
Press release
Bonus Beer
September Transit advertising
Place based media
Sampling
YouTube contest – Back to school
Press release
October Transit advertising
Place based media
Sampling
YouTube contest - Halloween
Press release
November Transit advertising
Place based media
Sampling
YouTube contest - Movmeber
Press release
December Transit advertising
Place based media
Promotional items – Christmas themed
Sampling
YouTube contest – Merry Christmas
Press release
Bonus Beer
January Transit advertising
Place based media
Promotional items
Sampling
YouTube contest
Press release

40
2015
Month Description
Place based media
Sampling begins
Sweepstakes begins
Press release
Place based media
Sampling
YouTube contest
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Sweepstakes ends
Press release
Bonus beer
Place based media
Summer packaging
Sampling
Press release
Bonus Beer
Place based media

41
Sampling
Press release
Bonus Beer
Place based media
Sampling
Press release
Bonus Beer
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Bonus Beer
Place based media
Promotional items
Sampling
YouTube contest
Press release

42
2016
Month Description
Place based media
Sampling begins
Sweepstakes begins
Press release
Place based media
Sampling
YouTube contest
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Sweepstakes ends
Press release
Bonus beer
Place based media
Summer packaging
Sampling
Press release
Bonus Beer
Place based media

43
Sampling
Press release
Bonus Beer
Place based media
Sampling
Press release
Bonus Beer
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Place based media
Sampling
Press release
Bonus Beer
Place based media
Promotional items
Sampling
YouTube contest
Press release

44
8.2 – Potential Problems to Achieving Deadlines
Some potential problems for achieving the deadlines are as follows:
 Outlet acquisition rate is lower than expected.
 Marketing efforts fail to build sufficient brand knowledge and interest.
 Regulations and licensing takes longer than expected.
 Negotiations with central liquor boards take longer than expected.
 New production requirements are not met as easily as expected.
 Transportation of beer to new regions for distribution takes longer or costs
more than expected.
8.3 – Milestones
The successful introduction Laker beer to Manitoba in 2014 will be determined by
these milestones:
1. Social Media: Attained 500 likes on Facebook- Increased brand awareness by
tracking
2. Sponsorship: Youth Entrepreneur Competition successfully implemented
3. Youtube videos: Received 50 videos entries per month for 3 consecutive
contests
4. Sales: $50,000,000 in net sales by the end of the fiscal year
5. Reaching the estimated outlets acquired at each quarter
All milestones mentioned above will also be applied to the expansion of
Saskatchewan (2015) and Alberta (2016). Because of the significant difference in
demand, Alberta will be subjected to different targets:
1. Social Media: Attained 1000 likes on Facebook- Increased brand awareness by
tracking
2. Youtube videos: Received 100 videos entries per month for 3 consecutive
contests
3. Sales: $75,000,000 in net sales by the end of the fiscal year
9.0 – Financials
9.1 – Type and Amount of Financing Required
For the duration of this plan Brick Brewing Company will need additional funding
reaching a maximum of $556,164 in year one. This cash deficit is projected to occur
in month two of operations, March. This number is a result of the front heavy
expenses of moving into a new region and the low initial income due to a low
number of retail outlets in the early stages. This additional funding requirement is
also projected to occur in both years two and three at the same time, projected as a
percent of sales. This funding will be provided by Brick Brewing Company’s current
line of credit, which holds a maximum of $8,000,000, against the companies
inventories and accounts receivable.

45
9.2 – Pro-forma Income Statement
Company Name
Pro-forma Income Statement For Period Ending:
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Total Total Total
Period Starting: 2014 2015 2016
Sales $4,501,741 $6,107,583 $7,488,286 $9,764,809 $8,365,399 $6,058,902 $4,640,690 $5,344,208 $6,106,467 $5,373,120 $5,388,042 $6,665,964 $75,805,212 $81,450,184 88,487,450$
Less: Discounts $90,035 $122,152 $149,766 $195,296 $167,308 $121,178 $92,814 $106,884 $122,129 $107,462 $107,761 $133,319 $1,516,104 $1,629,004 $1,769,749
Net Sales $4,411,706 $5,985,431 $7,338,521 $9,569,513 $8,198,091 $5,937,724 $4,547,876 $5,237,324 $5,984,338 $5,265,658 $5,280,281 $6,532,644 $74,289,108 $79,821,181 $86,717,701
Less: Cost of Goods Sold 3,601,393 4,886,066 5,990,629 7,811,847 6,692,319 4,847,122 3,712,552 4,275,366 4,885,174 4,298,496 4,310,434 5,332,771 60,644,170 65,160,148 70,789,960
Gross Profit 810,313 1,099,365 1,347,892 1,757,666 1,505,772 1,090,602 835,324 961,957 1,099,164 967,162 969,848 1,199,873 13,644,938 14,661,033 15,927,741
Expenses
Marketing $596,251 $318,001 $159,000 $119,250 $357,751 $397,501 $437,251 $238,500 $397,501 $278,250 $477,001 $198,750 $3,975,007 4,770,008 8,586,015
Financial Cost $37,804 $51,289 $62,883 $82,001 $70,249 $50,880 $38,970 $44,878 $51,279 $45,121 $45,246 $55,978 636,579 683,983 743,079
Slotting allowance $4,000 $3,529 $3,294 $3,529 $3,765 $3,529 $3,294 $3,059 $2,824 $2,824 $3,059 $3,294 $40,000 30,000 80,000
Depreciation and Impairment of property, Plant
and equipment
23,282 31,587 38,727 50,501 43,263 31,335 24,000 27,639 31,581 27,788 27,865 34,474 392,042 421,236 457,631
Selling and Adminitration 208,409 282,752 346,672 452,065 387,278 280,499 214,842 247,412 282,701 248,750 249,441 308,603 3,509,423 4,242,163 5,379,103
Rent 55,196 55,196 55,196 55,196 55,196 55,196 55,196 55,196 55,196 55,196 55,196 55,196 662,352 665,232 667,632
Income Tax 47,817 200,891 311,597 436,143 303,827 177,777 96,315 183,365 180,348 174,542 123,555 259,985 2,496,161 2,682,042 2,913,770
Distripution Fees
Total Expenses 972,758 943,244 977,370 1,198,684 1,221,329 996,716 869,868 800,048 1,001,429 832,471 981,363 916,280 11,711,564 13,494,665 18,827,230
Net Income (Loss) (162,445) 156,121 370,521 558,981 284,443 93,886 (34,544) 161,909 97,735 134,690 (11,516) 283,593 1,933,374 1,166,368 (2,899,489)
Cumulative Net Income (Loss) (162,445) (6,324) 364,197 923,178 1,207,621 1,301,507 1,266,962 1,428,871 1,526,606 1,661,297 1,649,781 1,933,374 3,866,748 5,033,116 2,133,628

46
9.3 – Pro-forma Cash Flow Statement
Company Name
Pro-Forma Cash Flow Statement For Year Ending:
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Total Total Total
Month: 2014 2015 2016
Cash In
Cash from current month sales 810,313 1,099,365 1,347,892 1,757,666 1,505,772 1,090,602 835,324 961,957 1,099,164 967,162 969,848 1,199,873 13,644,938 16,211,791 17,585,558
Cash from 1 month previous sales 1,750,303 1,800,697 2,443,033 2,995,315 3,905,924 3,346,160 2,423,561 1,856,276 2,137,683 2,442,587 2,149,248 2,155,217 29,406,002 32,423,582 35,171,115
Cash from 2 month previous sales 1,690,599 1,750,303 1,800,697 2,443,033 2,995,315 3,905,924 3,346,160 2,423,561 1,856,276 2,137,683 2,442,587 2,149,248 28,941,385 32,423,582 35,171,115
Total Cash Receipts 4,251,215 4,650,364 5,591,621 7,196,013 8,407,010 8,342,686 6,605,045 5,241,794 5,093,123 5,547,432 5,561,683 5,504,338 71,992,325 81,058,955 87,927,788
Cash Out
COGs 3,167,155$ 3,464,521$ 4,165,758$ 5,361,030$ 6,263,222$ 6,215,301$ 4,920,758$ 3,905,137$ 3,794,377$ 4,132,837$ 4,143,453$ 4,100,732$ 53,634,282$ 60,388,921$ 65,506,202$
Adminstration and Selling 217,000$ 283,744$ 341,130$ 435,749$ 377,585$ 281,720$ 222,775$ 252,016$ 283,697$ 253,217$ 253,838$ 306,952$ 3,509,423$ 3,951,396$ 4,286,232$
Rent 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 55,054$ 660,648$ 743,849$ 806,882$
Bonus packs promotion 11,160$ 11,160$ 11,160$ -$ -$ -$ -$ 11,160$ -$ -$ 11,160$ 11,160$ 66,960$ 100,440$ 133,920$
Premiums - Item with purchase give aways 127,166$ 127,166$ -$ -$ -$ 127,166$ 127,166$ -$ 127,166$ -$ 127,166$ -$ 762,996$ 1,144,494$ 1,525,992$
Transit Advertising - Transit Shelters 145,000$ 145,000$ -$ -$ -$ 145,000$ 145,000$ -$ 145,000$ -$ -$ 145,000$ 870,000$ 1,305,000$ 1,740,000$
Transit Advertising - King Bus Posters 98,212$ 98,212$ -$ 98,212$ -$ -$ -$ 98,212$ -$ 98,212$ 98,212$ -$ 589,272$ 883,908$ 1,178,544$
YouTube Contest 18$ -$ 18$ -$ 18$ 18$ 18$ 18$ 18$ 18$ 1,000$ 1,144$ 1,144$ 1,144$
Samples 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 50,163$ 601,956$ 677,766$ 735,199$
Slotting allowance 4,000$ 3,529$ 3,294$ 3,529$ 3,765$ 3,529$ 3,294$ 3,059$ 2,824$ 2,824$ 3,059$ 3,294$ 40,000$ 30,000$ 80,000$
Licensing and regulatory fees 1,980$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,980$ 2,229$ 2,418$
Sweepstakes -$ -$ -$ -$ 4,700$ -$ -$ -$ -$ -$ -$ -$ 4,700$ 4,700$ 4,700$
Place of purchase displays 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 21,683$ 260,196$ 390,294$ 520,392$
Web Site 7,180$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,180$ 7,180$ 7,180$
PR - Frosh fest sponsorship -$ -$ -$ -$ -$ -$ -$ 38,915$ -$ -$ -$ -$ 38,915$ 38,915$ 38,915$
PR - Brick Young Entrepreneur Competition 25,000$ -$ 22,460$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 47,460$ 47,460$ 47,460$
Banner Ads 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 8,334$ 100,008$ 150,012$ 200,016$
Place bases marketing 127,190$ 127,190$ -$ -$ 127,190$ -$ 127,190$ -$ 127,190$ -$ 127,190$ -$ 763,140$ 1,144,710$ 1,526,280$
Financial Costs 37,804$ 51,289$ 62,883$ 82,001$ 70,249$ 50,880$ 38,970$ 44,878$ 51,279$ 45,121$ 45,246$ 55,978$ 636,579$ 716,749$ 777,485$
Income Tax (42,236)$ 40,591$ 96,335$ 145,335$ 73,955$ 24,410$ (8,981)$ 42,096$ 25,411$ 35,019$ (2,994)$ 73,734$ 502,677$ 565,984$ 613,945$
Distribution Fees 450,174$ 458,069$ 561,621$ 732,361$ 627,405$ 454,418$ 348,052$ 400,816$ 457,985$ 402,984$ 404,103$ 499,947$ 5,797,934$ 6,528,120$ 7,081,304$
-$
-$
Total Cash Payments 4,512,038$ 4,945,705$ 5,399,894$ 6,993,450$ 7,683,305$ 7,437,677$ 6,059,477$ 4,931,541$ 5,150,181$ 5,105,466$ 5,345,685$ 5,333,031$ 68,897,451$ 78,823,271$ 86,814,210$
Cashflow Surplus/Deficit (-) (260,823) (295,341) 191,727 202,563 723,705 905,009 545,568 310,254 (57,058) 441,966 215,997 171,307 3,094,874 2,235,684 1,113,578
Opening Cash Balance (260,823) (556,164) (364,436) (161,873) 561,831 1,466,840 2,012,408 2,322,662 2,265,604 2,707,570 2,923,567 3,094,874 6,189,748 8,425,433
Closing Cash Balance (260,823) (556,164) (364,436) (161,873) 561,831 1,466,840 2,012,408 2,322,662 2,265,604 2,707,570 2,923,567 3,094,874 6,189,748 8,425,433 9,539,011

47
9.4 – Pro-forma Balance Sheet
Company Name
Pro-Forma Balance Sheet For Period Ending:
Opening 2014 2015 2016
ASSETS
Current Assets
Cash & Cash Equivalent -$ 6,189,748$ 8,425,433$ 9,539,011$
Receivables- accounts and others 6,497,000$ 6,642,746$ 7,137,410$ 7,754,080$
Inventory 4,847,000$ 4,955,732$ 5,324,769$ 5,784,827$
Prepaid Expenses 418,000$ 427,377$ 459,202$ 498,877$
Total Current Assets 11,762,000$ 18,215,603$ 21,346,814$ 23,576,795$
Long-Term Assets
Net Fixed Assets 19,582,000$ 19,582,000$ 19,582,000$ 19,582,000$
Intangible Assets 14,399,000$ 14,399,000$ 14,399,000$ 14,399,000$
Deferred Incoem Taxes 2,514,000$ 2,514,000$ 2,514,000$ 2,514,000$
Other Non-Current Assets 60,000$ 60,000$ 60,000$ 60,000$
Total Long-Term Assets 36,555,000$ 36,555,000$ 36,555,000$ 36,555,000$
Total Assets 48,317,000$ 54,770,603$ 57,901,814$ 60,131,795$
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payble 8,019,000$ 8,198,889$ 8,809,434$ 9,570,565$
Short Term Deb 3,843,000$ 3,929,209$ 4,221,805$ 4,586,567$
Total Current Liabilities 11,862,000$ 12,128,098$ 13,031,239$ 14,157,133$
Long-Term Liabilities
Long-Term Debt 6,417,000$ 6,417,000$ 6,417,000$ 6,417,000$
Other Non-Current Liabilities 331,000$ 331,000$ 331,000$ 331,000$
Total Long-Term Liabilities 6,748,000$ 6,748,000$ 6,748,000$ 6,748,000$
Shareholders' Equity
Additional paid in Capital 36,107,000$ 34,931,779$ 37,088,158$ 38,102,872$
Retained Earnings (7,341,000)$ -$ -$ -$
Accumulated Other Comprehensive Income 941,000$ 962,726$ 1,034,417$ 1,123,791$
Total Shareholders' Equity 29,707,000$ 35,894,505$ 38,122,575$ 39,226,663$
Total Liabilities and Shareholders' Equity 48,317,000$ 54,770,603$ 57,901,814$ 60,131,795$

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