NorthStar Cooperative is launching a new hop brand called Superior Hops to sell to home brewers. They will package and sell their locally grown hops in individual packages and brewing kits. Their target market is male home brewers aged 21-34 in the Midwest. They have developed a signature brewing kit called The Loonatic using only their Superior Hops. Their goals are to partner with local homebrew suppliers to sell the kits and increase brand awareness of Superior Hops over three years as they expand their market regionally.

1. NorthStar Cooperative
Burke - Deutz - Durhman - Farr - Franke - Groos - Gunderson -
Jennissen - Kasper - Libbesmeier - Martin - O’Toole
Advisers: Jayce Hoyt, Ward Nefstead, Ken Reiners
2013 NAMA Student Competition

2. Introduction
NorthStar Cooperative is excited to launch our Superior Hops brand, providing home brewers with a distinct north-
ern experience which is locally grown and privately trademarked. NorthStar is a local grower cooperative marketing
our brand Superior Hops, primarily to home brewers. The University of Minnesota provides our cooperative with a
strong base of applied research ensuring our successful genetics. Now is the time to meet the
growing needs of 19,681 Minnesota home brewers, equating to over a half million dollar market,
who are passionate about craft brewing1
. Most home brewers use prepackaged kits consisting of
hops, yeast, and grains. Currently, hops are sourced from the west coast at high costs. With home
brewing gaining popularity this is the perfect time for our brewing kit, The Loonatic, to enter the
market. This kit will feature Superior Hops and will be sold as an extension to our primary
product, Superior Hops. In addition, we will extend our product line to include our craft brew on
tap at Lucifer Brewing*
, a local microbrewery. We will partner with the two dominant home
brewing suppliers, Northern Brewer and Midwest Supplies, in the Minneapolis area, to sell our
locally grown hops for a flavorful, northern taste.
Hops are a key ingredient in beer as they add aroma and bitterness. Minnesota and Wisconsin are aspiring regions
for growing hops; our product will entice members of the locavore community. After analyzing the results of our
survey and focus group of home brewers, we concluded that hops quality, freshness, and availability are the highest
ranked consumer preferences.
Market Analysis
Product & Packaging
Superior Hops are an exeptional quality hop that can be used in a diverse range of beer styles. They are grown in
Southeastern Minnesota and Southwestern Wisconsin. Our hops are packaged in vacuum sealed biodegradable plastic
bags which promote freshness, quality and prolong shelf life. Superior Hops packages will display a grower story on
the back of each package with a reference to our website for brewing information. The Loonatic brewing kits will be
packaged in boxes and sold through our partnering supply stores.
Market Potential
American Homebrewers Association showed in 2010 that homebrewing supply stores saw an 82% increase in beginner
homebrewing kit purchases.2
Our marketing research and recent trends have shown that the “hoppier” or more bitter
the brew is, the better.1
As a cousin of the Cascade and Centennial hops, varieties known for their bittering quality,
Superior Hops fit this preference. Our versatile hops add aroma and bitterness which can be used for a wide range
of beer styles. We plan to market our hops to homebrewers through a demand-pull strategy by the development of a
new beer recipe, with exclusive use of our Superior Hops.
The Loonatic brewing kit featuring Superior Hops will generate a demand and increase
the number of home brewers. Home brewers associate our competitor’s hops with
specific styles of beer. To gain recognition for our hops, we are creating a recipe for a
signature craft brew. We strive to gain consumer loyalty for The Loonatic by creating the
ultimate beer experience. Made possible through our partnership with a Twin Cities craft
brewer, The Loonatic recipe will be available through partner suppliers and also online.
Target Market
Our target market demographic is a male between the ages
of 21 and 34, according to our survery and focus group.2
Most
homebrewers fall into the middle to upper-middle class
income range and are married3
. Anyone who shares these
demographics is a potential customer.
* Lucifer Brewing is a model after a microbrewery (~15,000 barrels/yr)
1 American Home Brewers Association
2 Home Brewer
3 2013 Focus Group & Survey-University of Minnesota, 400+ respondents
Quality
Freshness
Availability
Top 3 Consumer Values
1
Survey Results
85% of survey
respondents are
male and 48%
are between
the ages of
25-34
Home brewers
make 70 gallons
of beer on
average a year
75% of
individuals go
to an
establishment
because they
exclusively
carry a certain
type of beer
they want to
try
68% of home
brewers want
to grow their
own hops using
rhizomes
58% of home
brewers
purchase each
ingredient
separately and
50% buy both
online and in
store

3. Market Size
Our targeted geographical market will increase from 19,681 homebrewers in year
one to 59,419 in year two. Target market in year three is expected to increase to
147,039 homebrewers. Our market size will continue to increase as we expand
regionally and more homebrewers are developed through our demand-pull
strategy. We will be targeting homebrewers in major Minnesota cities during year
one. According to American Homebrewers Association (AHA) director Gary Glass,
“The Twin Cities have long been a Mecca for homebrewing,” making it a great
place to begin. 1&4
We will then expand to North
Dakota, Wisconsin, and Iowa. In year three our
market size will consist of most of the Midwest
with the expansion into South Dakota, parts of
Nebraska, Illinois, and Michigan.
Superior Hops is a product created after two and a half years of research by
the University of Minnesota’s Southern Research and Outreach Center. Our
trademarked hops cater to the ever-developing palate of American craft beer
drinkers. Trends show that these craft beer drinkers are seeking more
bitter flavors.3
Based upon our survey data, we have found that IPAs, Stouts,
Porters, and Lagers are trending as the most popular styles of homebrews.
We have met this demand by developing a hop that exceeds the alpha acid
levels of Chinook hops, while retaining the citrus flavors and aromas similar
to traditional Cascades and Centennials.
Superior Hops are conveniently available in four options:
• One ounce packages of fresh whole hop buds.
• One ounce packages of dry pelleted hops.
• Loonatic homebrew kits containing nine one-ounce packages of dry
pelleted hops.
• Individual hop rhizomes, which homebrewers can grow for fresh,
in-season, hop harvesting and brewing.
In order to capture a signature taste with Superior Hops, we have developed
The Loonatic homebrew kit that will be marketed in conjunction with
local homebrew suppliers. Each kit is comprised completely of locally
grown ingredients.
Competitive Analysis
Strengths
-Highly desired attributes
-Strengthens local economy
-Cooperative based structure
-Local and sustainable production
Weaknesses
-Unestablished brand awareness
-Limited direct access to
consumers
Opportunities
-Market exclusivity with suppliers
-Growing popularity in home
brewing and craft brews
-Asset diversification (fresh,
pelleted, rhizome, kit)
-Partnership with leading online
distributor, Hopunion
Threats
-Well-established competitors
-Challenge to displace market
share
4 Asylum
5 Hopunion
6 Midwest Supplies
This chart represents competitive traits among leading hop varieties. Each score is based
on a rating scale of 1-5, where 1 is the least and 5 is the most desirable. The total score is
the sum of the four categories, which illustrates Superior Hops’ competitive advantage.5&6
1
3
2
Attributes Superior Cascade Centennial Chinook Simcoe
Beer Style
Versatility
5 5 4 3 2
Locally
Grown
5 0 0 0 0
Bittering
Value
5 2 4 5 5
Aroma Value 5 5 5 3 3
Price 2 3 5 5 3
Total 22 15 18 16 13
Year Location
Target Market Size*
(Homebrewers)
1 Greater Minnesota- 200 mile range 19,681
2 300 mile range 59,419
3 500 mile range 147,039
*National Homebrewers Association
Market Size
2
*Calculated based from American Home Brewers Association, 2013

4. Product
Superior Hops are the premier hop grown and processed in the Upper Midwest. NorthStar strategically sources hops
from farms in Southeastern Minnesota and Southwestern Wisconsin. Our unique hop variety was bred from the
Cascade variety for northern hardiness by the University of Minnesota Extension. This variety serves as a
multipurpose hop for home brewers providing aromatic and bittering qualities. The Loonatic brewing kits contain
Superior Hops and will be sold in homebrewing supply stores.
Placement
Initially, Northstar Hops will be providing homebrewing supply stores across the Greater Twin Cities area with
Superior Hops. Inside these supply stores our hops will be found in single one ounce
packages as well as in I.P.A. (India Pale Ale), Lager, and Stout brewing kits. These three
kits will be marketed under The Loonatic brand. We intend to exclusively provide our
craft brews to select establishments in our geographical target market.
Price
Our hops will be sold in individual one ounce packages at a competitive price of $2.50
per ounce. The Loonatic home brewing kits will also be sold from our partnered suppliers
at a competitive price of $30.7
Promotions
In order to launch Superior Hops we will
promote our brand with The Loonatic brew kits
and craft brews in a two phase process. Using
two phases will ensure the proper
foundation in the brewing industry and acquire
7% market share.
Business Proposition
Strategy Statement
Northstar’s Superior Hops strives to be a preferred resource for Midwestern brewers, consistently providing hops of
exeptional quality that cater to the ultimate homebrewing experience.
Goals
• Year 1: Partner with Lucifer Brewing to cre-
ate 30% brand awareness through our branded
beer, The Loonatic, while building relation-
ships with Midwest Supply and Northern
Brewer to sell beer kits containing our hops.
• Year 2: Achieve 45% brand awareness by ex-
panding into locations within 250 miles of our
producers.
• Year 3: Progress into the 400 mile range of our
producers, creating brand awareness to 60% of
the home brewer market. Achieve profitability
and ROI for patrons.
Planning Assumptions
• Supply is immediately available at year one and will contin-
ue to expand to meet demand as the market grows.
• Mechanized planting and harvesting methods
• NorthStar Cooperative, in an association with a third party
has the necessary processing, packaging, and distribution
facilities needed for pelleted, fresh, and rhizome hops.
• Midwest Supplies and Northern Brewer have agreed to exclu-
sively package and sell our branded hops and kits.
• Lucifer Brewing has agreed to brew and distribute our signa-
ture beer, The Loonatic, using only Superior Hops as the hop
ingredient.
Action Plan
37 Midwest Supplies
Promotional Roll-Out Plan
Locations Year 1 Year 2 Year 3
200-Mile Range
300-Mile Range
500-Mile Range
Phase 1 Promotions
Phase 2 Promotions
Phase 1 Promotions
Phase 1 Promotions
Phase 2 Promotions

5. Promotional Phase 1: Broaden Brand Awareness
The primary objectives in Phase 1 will be to increase brand awareness by acquiring 7% of the target market
share and collect marketing data. In order to do this, we will utilize different strategies to establish our brand.
Promotional Phase 2: Increase & Maintain Demand
The primary objectives of Phase 2 promotion are to establish a social community for our products and acquire
brewers and distributors. For Superior Hops to become a well known name among home brewers we will need
to continue the promotional tactics used in Phase 1 with additional promotional elements in Phase 2.
Events Campaign: NorthStar Cooperative will create a road tour to select breweries and supply stores featuring our
customized Loonatic promotional vehicle. At these locations we’ll promote our Loonatic brews and Superior Hops
through brewing competitions, bar events, and festivals. While at these events, Superior Hops will have demos on
how to brew, coupon/gift giveaways, and an opportunity to meet our hop growers from around the area. We will
promote our event beforehand through group promotional coupons found online at Amazon Local.
Social Media: Today’s culture revolves around social media. Homebrewers actively communicate
through Facebook, Twitter and brewing forums.4
Utilizing these sites is essential for
Superior Hops, because it will create brand awareness and help foster communication between
our customers. Other sites include BrewingTV, YouTube, iBrew and Pinterest where many
homebrewers look for new recipes and brewing techniques.
Customer Relations: In order to get in touch with our customers we will offer free samples of our Loonatic beers.
During selected seasons we will be able to receive active feedback on market trends. We will offer a loyalty program
to promote customer purchases. These tactics will engage customers with our product.
Sponsorships: After anticipated awareness is acquired
in the market, we will sponsor events such as
homebrewing contests and Learn-to-Brew seminars.
Through these contests and seminars, we will provide
coupon rewards to reach out to and gather information
on new homebrewers.
Trade Shows: As a new brand entering the hop market,
representatives for Superior Hops and The Loonatic
brews will pursue trade shows to engage with real time
markets and industry leaders. In year one we will attend
the Minnesota Monthly Food & Wine Expo, Wisconsin
Beer Expo, and the American Craft Brewers Conference
held in Washington D.C.
Print Media: We will advertise in The Growler and All About Beer Magazine, as well as through our partners,
Northern Brewer and Midwest Supply to draw in home brewers.
Event Days: With projected expanding customer base, we will host special events including the 2014 Loonatic
Olympics, where our fan base coined the “Loonies” taste our specialty beers, play, and compete.
4
3 2013 Focus Group & Survey-University of Minnesota, 400+ respondents
Promotions Expenses Percent of Total
Sales Representatives 165,000.00$ 19.5%
Coupon Discounts 13,400.00$ 1.6%
Print media 107,000.00$ 12.6%
Website 70,000.00$ 8.3%
Public Relations 64,000.00$ 7.6%
Promotions 252,000.00$ 29.8%
Local Events 140,000.00$ 16.5%
Monitoring and Measuring 23,000.00$ 2.7%
Contingency Plan 12,000.00$ 1.4%
Total Marketing Expenses 846,400.00$ 100.0%
Year 1 Marketing Expenses

6. Internal assessment as well as external environmental inputs will be utilized to examine the success of
NorthStar Cooperative as well as our brand Superior Hops. Monitoring will be conducted based on customer and
retailer satisfaction, financial evaluations, market penetration, and brand awareness. Today’s market requires the
highest quality hops available, therefore our main focus is to ensure internal operations exceed expectations.
Externally, customer relationship management with retailers and end consumers will be our main focus. Internally,
profits for the cooperative and added-value for producers will be the top goal.
Online dashboard systems will monitor locations where coupons are distributed and redeemed. Social networks,
website usage, and retail stores will be monitored. NorthStar Cooperative will be responsible for quality control and
consistency
standards. If initial
goals are met in terms
of promotions,
awareness, and
market penetration,
geographical
expansion into new
areas will continue.
If standards are not
met, further detailed
contingency plan will
be implemented.
Monitoring & Measuring
Financial Evaluation
Years Year 1 Year 2 Year 3
Hops (Dry/ leaf) Units sold 224,742.00 1,304,925.00 5,195,469.00
Wholesale Price/ unit 2.50$ 2.50$ 2.50$ Cost per unit
Hop Revenue/year 561,855.00$ 3,262,312.50$ 12,988,672.50$
Rhizome Units sold 5,510.63 61,598.06 176,446.40 Cost per unit
Wholesale Price/ unit 4.80$ 4.80$ 4.80$
Rhizome Revenue/ year 26,451.03$ 295,670.67$ 846,942.72$
Total Revenue/ year 588,306.03$ 3,557,983.17$ 13,835,615.22$
Total Cost of Hops Sold (62,927.76) (365,379.00) (1,454,731.32)
Total Cost of Rhizomes Sold (5,786.16) (64,677.96) (185,268.72)
Operating Expenses
Processing Wages (70,000.00) (90,000.00) (180,000.00)
Employee Benefits (347,500.00) (1,235,000.00) (1,577,000.00) *company vehicles
Utilities Expenses (200,000.00) (330,000.00) (500,000.00) *machinery/ building costs
Marketing Expenses
Sales Representatives (165,000.00) (720,000.00) (1,452,000.00)
Coupon Discounts (13,400.00) (40,243.00) (134,000.00)
Print media (107,000.00) (180,748.00) (1,792,500.00)
Website (70,000.00) (107,492.00) (107,048.00)
Public Relations (64,000.00) (94,570.00) (268,860.00)
Promotions (252,000.00) (440,150.00) (1,920,387.00)
Monitoring and Measuring (23,000.00) (34,000.00) (112,000.00)
Contingency Plan (12,000.00) (28,000.00) (645,000.00)
Local Events (140,000.00) (270,000.00) (328,000.00)
Total Marketing Expenses (846,400.00) (1,915,203.00) (6,759,795.00)
Total Expenses (1,532,613.92) ($4,000,259.96) ($10,656,795.04)
Net Income ($944,307.89) ($442,276.79) $3,178,820.18
Income Statement
In year one, NorthStar Cooperative
will allocate significant investments
to establish a market share allowing
Superior Hops to develop a
committed customer base in greater
Minnesota and create more home
brewers. In proceeding years,
marketing expenses will increase
exponentially by 126% in year two and
253% in year three as the three year
roll-out plan expands sales and
market share geographically.
Promotional methods will increase
throughout phases in that frequency
and reach of local events as well as
advertisements will increase. After
expected losses in years one and two,
profit margins are
anticipated to achieve 23% by year
three. Grass-roots marketing tactics
will influence sales of Superior Hops
to yield an appealing return on invest-
ment in year three.
5
Measurement Standards Monitoring Methods Contingency Plan
Sales/Profitability -Financial ratio analysis
-Gross margin
-Annual sales growth
-Adjust product position
-Reevaluate price margins for consumers and growers
-Investigate promotional strategy
-Reassess product placement
Customer
Relationship/Satisfaction
-Retailer surveys
-Ensure on time deliveries
-Evaluate customer expectations
-Engage and survey end consumers
-Offer promotional incentives for customers
-Evaluate consumer services tactics
-Increase incentives for customer loyalty
-Recover relationships in timely fashion
Market Penetration/Brand
Awareness
-Monitor website usage
-Evaluate Facebook, YouTube, and Twitter activity
-Comparisons to sales of competitors
-Track use of promotional coupons
-Investigate and react based on consumer trends
-Survey and response to industry trends in home brewing
-Reassess advertising methods
-Restructure use of promotional resources
-Utilize pull strategy to bring product to consumers
Social
Responsibility/Sustainability
-Responsibility in stewardship
-Monitor Chemical use of growers
-Mitigation of internal and external waste
-Invest in research to decrease environmental hindrance
-Develop and utilize efficient use of byproducts

7. - Audience Profile -
The University of Minnesota NAMA Team is proud to present a
comprehensive marketing plan of the new brand, Superior Hops and our
product extension, Loonatic brewing kits. This plan is presented to
NorthStar Cooperative’s hop farmers for approval from the board of
directors. NorthStar is a cooperative of hop growers positioned in the
upper Midwest.