The document proposes opening a brewpub to offer local craft beers and address consumer demand for more variety beyond mainstream beers. It would provide seasonal brews and different beers monthly. Market research shows the target demographic is males aged 21-44 who want real, non-mass produced beer. While larger breweries threaten competition, establishing quality products and regional or national expansion present opportunities. Financial projections estimate $571,500 in startup costs and $180,000 in first year sales, forecasting continued growth.
1. The Problem Brewpub “I want to drink real beer, not Bud Light.” “I’m tired of drinking the same old beer.” “I would like to get a larger variety of beer.”
2. Solutions Create a Brew Pub that will provide locals with fresh creative craft brews. Give people a selection to what they drink. Offer brews that change with the seasons.
3. Industry According to Beverage Marketing Corporation (www.beveragemarketing.com) 2003- 2008 there was an increase in sales from 205 million barrels to 214.6 million barrels Many breweries such as Sam Adams attempt to remain in the craft brewery market, so that they can maintain the number one seller status. They have become too large.
4. Market Gender: Male- 77%, Female- 23% Age: 21- 27= 23%, 28- 34= 18% 35- 44= 26%, 45 and older= 34% African-American- 12% Caucasian- 74% Hispanic- 11% Other- 3% “I want a real beer that is not mass produced.” Tlapa, C., Miller, R., & Washington, K. (2010). BEER. Restaurant, Food & Beverage Market Research Handbook, 227-232. Retrieved from Business Source Complete database.
5. Competition According to BeerNews.org, Boston Beer Co., Sierra Nevada Brewing Co., and New Belgium Brewing Co., were the top ranked beer companies in 2009 by beer sales. Strength: Produce a quality product. Weakness: Not able to mass produce without compromising quality. Opportunities: Expansion regionally or nationally Threats: Competition from larger breweries.
6. Business Model Create a place for people to drink amazing beer while enjoying music. Seasonal and Traditional brews. Different beers monthly Sell beer to consumers and retailers. Drink specials during sporting events. Live music Offer free buffet during happy hour
7. Pro Forma Statements Startup Expense: $155,500 Startup Assets: $110,000 Cash for Recurring costs: $306,000 Total Startup Costs: $571,500
8. Sales forecast 1 year $500 a day in sales $180,000 first year 15% increase in sales during year 2 20% increase in sales during year 3