ABFarms, LLC and HopsFromVirginia.com aim to become the primary provider of aroma hops in Virginia and the Mid-Atlantic region by establishing a 100-acre hopyard. This will help meet the growing demand from over 3,700 craft breweries nationally as well as home brewers. The companies plan to generate over $1.5 million in annual hops sales, create 8 jobs, and provide a boost to tourism and the local economy in Shenandoah County, Virginia. Financing of $3 million is being sought to fund land leases, infrastructure, equipment, and initial operating costs over the first two years as the hopyard becomes established.

1. HopsFromVirginia.com
The resurgence of hop growing on the east coast.
ABFarms, LLC and HopsFromVirginia.com

2. Our Company Mission and Goals
 Become the primary provider of aroma hops in the State of Virginia and to the Mid-
Atlantic region in general.
 To become a trusted provider of hops to hobby brewer stores and the home brewing
community.
 To become the anchor for the resurgence of hop growing as a large industry in Virginia
and on the east coast.
 To provide jobs, revenue and tourism in Virginia and Shenandoah County.
HopsFromVirginia.com
ABFarms, LLC
Our Mission:
To provide fresh, locally grown hops to the micro-brewery and home brewer communities
enabling them to create a quality beer with a local flavor for their customers and own
personal enjoyment.

3. Current Business Conditions
 Explosive growth in the craft beer brewing industry with over 3700 breweries currently in operation,
the most in the history of the country and more being opened every day.
 According to statistics provided by the Beer Institute, as of 2013 there are 3699 micro-breweries and
brewpubs currently operating in the United States, an increase of 151% since 2009!
 As of March 2014, the Beer Institute website website states that they have tallied 948 brewery
openings in 2013, an increase of 34% over 2012.
 Recent efforts by enthusiasts have pursuaded state legislatures to pass homebrew laws and it is now
legal to homebrew beer in all 50 states.
 Multiple industry surveys have shown that these new brewers, craft breweries and brewpubs desire to
purchase locally grown products creating an unfulfilled demand in the marketplace.
 When addressing price, 58.6% of survey respondents said that they would be willing to pay a
premium of 1-10% over market price to purchase locally grown hops. Additionally, 27.6% of the
respondents stated they would be willing to pay a premium of 10-30% over the market price.
 Overall, homebrew supply shops grew 29 percent in gross revenue in 2012, which is an increase of
2% over 2011 growth and reflects a steadily increasing demand for the ingredients and equipment
needed to brew at home.

4. Our Product Line
Whole leaf hops by the pound - A small brewery might not need an entire bale for a special or seasonal
brew, so we can also supply by the pound. This will be done on a case by case basis using hops we
have in cold storage.
Whole leaf by the batch – Home brew shops and recreational brewers require hops in 1-2 oz packets for
use in individual batches of beer. These are vacuum packed in a special process and are easy to ship
and have the highest profit margin.
Wet-Fresh Hops – Available for one week after harvest, specialty sales of this product will arrive just in
time for breweries to make seasonal holiday brews. Requiring less processing that other products, the
price will be less for the customer but a high profit margin for the business.
Pelletized by the pound – Some brewers prefer their hops in pelletized form. Pelletized hops can be sold
in large or small amounts.
Pelletized by the batch – Home brew shops and recreational brewers require hops in 1-2 oz packets for
use in individual batches of beer. These are vacuum packed in a special process and are easy to ship
and have the highest profit margin.
Hop Rhizomes – Each root cutting can become a viable plant and instead of discarding the cutting, they
can be sold for $3-5 each based on the variety. Customers are home brew shops for resale and direct
to the home brewer.

5. Number of Breweries Nationally
Image – Number of active permitted breweries Beer Institute. Retrieved Feb 12, 2014, Brewers Association
<http://beerpulse.com/2014/02/ttb-overseeing-record-high-3699-active-permitted-breweries-per-beer-institute-2436/>
The number of breweries in operation nationally has skyrocketed to near
3,700 in an unprecedented growth trend:

6. National Production Growth
Image - Mid-Year Craft Production Volume 2009-2013 Retrieved Feb 1, 2014, Brewers Association
<http://www.brewersassociation.org/pages/media/press-releases/show?title=brewers-association-
reportscontinued-growth-for-u-s-craft-brewers>
The Brewers Association has published the following data on brewery and
brewpub production nationally:

7. Mid-Atlantic Brewery
Production in 2012
According to a BA survey, American brewers use about one pound per barrel, a number that is going up as
drinkers buy still more IPAs (now 18% of craft sold and close to three times more than five years ago). So
craft brewers needed at least 1.3 million pounds more hops in 2011. The other brewers needed 750,000
pounds less (to brew 4.5 times more beer). Hop sales went up.
Stan Heironymus, AppelationBeer.com*
*Hieronymus, Stan “Hey, Mr. President, heard of American Hops?” appelationbeer.com 4 Sep 2012
<http://appellationbeer.com/blog/hey-mr-president-heard-of-american-hops/>
State Breweries USA Rank Barrels/
Annually
Increase/
Decrease in 2011
VA 48 15 84,059 36.81%
MD 30 24 154,650 25.35%
WV 5 48 3,752 22.82%
PA 102 6 1,626,116 5.11%
NJ 26 27 37,648 8.58%
DEL 9 44 180,794 17.43%
NC 70 10 159,033 33.36%
Totals 290 2,246,052
*Washington, D.C. Numbers not available

8. Our Target Market Growth
State Operating Planned Total Potential Increase
VA 48 102 135 181%
MD 36 25 61 69%
WV 7 7 14 50%
PA 102 132 212 107%
NJ 26 53 69 165%
DEL 11 9 20 81%
DC 3 3 6 50%
NC 78 66 144 84%
Totals 311 397 661 112%
Brewers Association – Find U.S. Brewery. Retrieved Feb 1, 2014, Brewers Association
<http://www.brewersassociation.org/pages/directories/find-us-brewery>
The Brewers Association has published the following data on brewery and
brewpub growth in the Mid-Atlantic region:

9. ABFarms, LLC
The planned size of the hopyard at ABFarms, LLC is 100 acres with an annual yield of 150,000-
200,000 pounds of dried hops with a retail value of $1.5-2 million.
To grow the 100,000+ hop plants will require the construction of a trellis system with irrigation, hop
picking and processing equipment, a kiln for drying the hops and the necessary equipment and
vehicles to run a standard farming operation.
The business is expected to create 3 full-time jobs and by its fourth year of operation it will generate
over $600,000 in revenue and $200,000 in taxes annually.
ABFarms, LLC will pursue the “Virginia's Finest” label for its produce to enhance its marketability.
ABFarms, LLC will wholesale the harvest to HopsFromVirginia.com, its subsidiary and marketing
arm and derive revenue from the retail sale of hops products as dividends, increasing profitablity.
When built, ABFarms, LLC will be the largest hopyard on the East Coast making Shenandoah
County the Hop Capitol of the East. It will be a magnet for publicity, tourism and agricultural
research and education.
The company will establish and host the Virginia Hops Festival to be held every year at the farm.
This will enhance our product sales, allow us to build better relationships with our customers, raise
money for charitable causes, generate tourism revenue and garner us significant publicity.

10. HopsFromVirginia.com
HopsFromVirginia.com will be established as a subsidary and marketing arm of ABFarms, LLC.
The company will process, package and market the hops in the Mid-Atlantic region to breweries,
brewpubs and homebrew shops. The company will also sell directly to customers through its retail
website, HopsFromVirginia.com.
Using a blend of traditional and new sales methods, most notably “magnet marketing” and joining
them with technology offerings such as B2B and retail websites, smartapps and newsletters, the
company will create multiple marketing channels to sell our products.
Instead of breweries and brewpubs going in search of hops for their business, we will seek them out
and bring the hops to them, selling them a product they desire at a good price.
Based on harvest estimates, by the fourth year of operation HopsFromVirginia.com is expected to
generate revenue of $1.2 million and taxes totalling $200,000 annually and create 5 full time and 2-3
seasonal part time jobs. It will also pay over $600,000 annually to ABFarms, LLC and pay subsidiary
ownership dividends as determined by management.
Shenandoah County is bi-sected by Interstate 81, which runs north through the Shenandoah Valley.
This highway passes from North Carolina, through Virginia, West Virginia, Western Maryland and
into western Pennsylvania. It meets many East-West Interstates providing access to the entire
planned region of operations easing shipping concerns and allowing our customers to visit us.

11. Our Competitive Advantages
 Our biggest competitive advantage is our name HopsFromVirginia.com. This name will
allow us to seize control of the Virginia hop market.
 The regional operation zone. Upon establishment, HopsFromVirginia.com will be the single
largest hops provider on the eastern seaboard and have no regional competitors.
 Our regional location and proximity allows us to ship or travel to any of our customers in
one day and we can invite them to come visit the operation so they have a stronger
customer relationship with us.
 Surveys indicate a majority of brewers would be interested in sourcing 100% of their hop
needs locally if the quality matched their expectations and the price point fell within
$5‐10/lb.
 We can provide breweries and brewpubs with fresh wet hops for seasonal brews. A service
other hop providers are unable to offer.
 We can service our customers in the future by expanding or carving out a few areas in the
yard to cultivate specific varieties under growing contracts.
 Our internet marketing savvy and agility will allow us to reach our target market in more
efficient and personal ways that other hop providers.
 Each year, we host the Virginia Hops Festival making us the center of the brewing industry
in the state of Virginia, cementing our relationships with home brewers and breweries.

12. Overcoming Our Competitive
Disadvantages
HopsFromVirginia.com will purchase its premium aroma hops at wholesale prices from
ABFarms. This will be a limited supply(150,000 -200,000 lbs per year) of Virginia grown
hops. We will have the only supply and will be competitive on price.
Our entry into the regional market will be assisted by the exponential growth that has been
occurring in the craft-brewery business in our region. Simply put, given the projected
growth in the industry over the next decade, each year our potential customer base will
grow as will the demand for our product. Selling into an expanding market is the best of
business conditions and one we will be positioned to take advantage of.
Other methods we will be using to make in-roads into our market area are the standard
marketing methods plus the new digital/social networks that are growing and changing
everyday. We hope to pull in significant business through B2B and consumer websites. By
utilizing professionally created marketing materials and methods, the business should make
a good impression in the community.
A distinct advantage we have over our competitors is the ability to easily get face-to-face
meetings with our customers, either by sales calls and visits to their breweries or having
them come visit us and take a tour of the ABFarms hop yard to see their hops being grown.
This will allow us to connect with our customer base and forge a stronger relationship.

13. Future Outlook
The future outlook for the business is excellent. The brewing industry is in the midst of a
decade long period of strong growth that is expected to last at least another decade. The
market is currently growing 25% annually(2009-2013), year over year.
Given the rapid rise in the number of breweries, brewpubs and homebrew stores and their
projected revenue growth, ABFarms, LLC and HopsFromVirginia.com are well positioned to
sell a coveted product into a market of strong demand.
The revenue numbers in the business plans are conservative to show the minimum
amounts of revenue to reach profitability. We believe that the annual revenue will exceed
those numbers handily and the company will be stable, secure and well able to meet its
debt obligations.
The establishment of a hopyard of this size on the eastern seaboard will be a sensation,
herald the reestablishment of the hop industry in the area where it originally flourished and
will provide jobs, educational resources, publicity, revenue and tourism to the region.
Few businesses can generate the amount of interest and free publicity this venture will
garner at the local, state, national and likely international levels, launching us into the
marketplace and paving the way for our success.

14. Financing
ABFarms, LLC and HopsFromVirginia.com LLC will require financing of $3 million to establish
farming and harvesting operations, establish offices and to operate for the first two years.
Investors are being sought for:
Land lease agreements
Building and equipment financing
Infrastructure financing
Operating capital financing
While the company will likely operate at a loss for the first two years, it is anticipated that
sufficient revenue will be generated to allow dividend payments beginning in year two through
the completion of the term of the operating agreements.
– Contact:
– Robert B. Andrews
– 165 Savannah Drive
– Strasburg, VA 22657
– randrews@hopsfromvirginia.com