Licensee Brochure 2.13.09 Pdf


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A brochure for potential licencees of Strangford Lough Brewing Company

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Licensee Brochure 2.13.09 Pdf

  1. 1. Licensed Microbrewery Opportunity World Headquarters: Tony Davies/Bob Little: Bradleigh Lodge, 22 Shore Road, Killyleagh, County Down, Northern Ireland +442844821461 North American Office: John O’Keeffe: 15282 Long Street, Overland Park, KS 66221 (913)660-6214 011
  2. 2. One of Ireland’s best-kept secrets is coming to North America! Strangford Lough Brewing Company is expanding to North America through a comprehensive business strategy, which leverages localized Independent Microbreweries to brew and supply regional markets with our eminently popular award-winning Irish Ale‟s. The information contained within this document has been specifically designed to inform you about the exploding consumer demand for locally brewed craft beers, the historic Irish Strangford Lough products, and how you can build a successful and profitable independent business within the Strangford Lough Brewing Company Group. With advanced wort brewing technology and traditional award-winning Irish recipes, the marketplace for Strangford Lough Beer represents a truly exciting venture with enormous profit potential! Once you have reviewed the information contained within this document, the next step is to call us to further discuss this exciting and profitable opportunity and discover how you can become part of the Strangford Lough Brewing Team! Our North America representative, John O‟Keeffe, can be contacted by email at or by telephone at (913)660-6214. John has over 20 years of consumer packaged goods experience, working for companies such as Coca-Cola, Bacardi Rum, and The House of Seagram. Strangford Lough licensed microbrewery opportunities are very limited, so if you want to secure your position operating an exciting and profitable craft brew business make sure to call today for further details! Thank you and we look forward to meeting with you. Best Regards, Strangford Lough Brewing Company (913)660-6214 Page 1 of 16
  3. 3. Table of Contents 1.0 Strangford Lough Brewing Company .............................................. 3 Award Winning Brews ......................................................................... 3 Strangford Lough Marketplace ............................................................ 4 Strangford Lough Brewers Association. ............................................... 6 2.0 Strangford Lough Microbrewery Opportunity .............................. 6 Comprehensive Business Package ....................................................... 7 Investment ............................................................................................ 8 Brewery Profit Projections .................................................................... 9 3.0 Brewmaster Technology ................................................................... 11 Brewery Licensing ............................................................................. 11 Brewing Process. ................................................................................. 11 Advanced wort Technology ................................................................ 12 Exclusive State Distribution .............................................................. 13 4.0 Strangford Lough Market Leadership .......................................... 13 Traditional Irish Recipes ................................................................... .13 Authentic Irish Brands ........................................................................ 14 National Quality Standards ................................................................ 15 Certification. ....................................................................................... 15 5.0 What is the Next Step? .................................................................... 16 Copyright 2008 Strangford Lough Brewing Company Ltd. All rights reserved. All information, written & verbal used in the course of providing company information is to be treated as confidential by the parties to which it was provided. Your accepting and reviewing this document acknowledges that the information contained within, as well any related verbal conversations, are not to be discussed or disseminated beyond the associated parties. Violation of these conditions will result in damages to Strangford Lough Brewing Company Ltd. and related partners and as a result, legal action may be initiated. Page 2 of 16
  4. 4. 1.0 Strangford Lough Brewing Company Strangford Lough Brewing Company is based in the Killyleagh area of County Down in Northern Ireland. We have used our rich history to great benefit in branding our award-winning brews. Strangford Lough, or lake, was the burial place of a Viking king, Magnus, known as Barelegs, who wielded a powerful sword called Legbiter. The area is also strongly associated with St Patrick, who brought Christianity to Ireland. Our range of beers are named after these historical Irish figures. Two of our best-selling brands are named after Magnus Barelegs: Barelegs Brew and Legbiter. Saint Patrick is buried 2 miles from Magnus's grave, and three beers are named in his honor: St Patrick's Gold, St Patrick's Best and St. Patrick's Ale. Our beer ingredients are typical, along with a very special local Irish -ingredient: Shamrock. Our aim is to make beers that are enjoyable in appearance, bouquet, and taste, to bring you a little of what is best about Ireland. Award Winning Brews Legbiter 2007 Champion Beer –O’Neil’s Irish Pub Chain, Great Britain In the Fall of 2007, O‟Neil‟s Irish Pub Chain, with over 70 locations throughout Great Britain, had an all Irish Beer contest, in which pub patrons got to vote. After collecting nearly a third of all votes cast across the November beer festival, Strangford Lough Brewing Company‟s „Legbiter‟ was crowned All Ireland Champion of the beers over all other leading Irish ales. Legbiter is served at O‟Neil‟s alongside current favorites, such as Guinness®, Jameson, Bushmills and Magners. Page 3 of 16
  5. 5. 2006 Brewery of Choice – Celtic Faire Highland Festival, Scotland Highland Feast is an award-winning festival celebrating good quality food and drink in the Highlands of Scotland. The Festival has built its reputation upon creating unique events that create notable experiences using a wide range of entertainment and unusual venues as the basis of celebrating food and drink. The Northern Ireland Tourist Board exclusively invited Strangford Lough Brewing Company to represent the quality food and drink product of Northern Ireland at the Celtic Faire. Review of Strangford Lough Beers in Beer Advocate Magazine Three of Strangford Lough Beers ranked in the top ten percent of all Great Britain and Irish beer brands. Legbiter A Barelegs B St. Patricks Ale B+ Strangford Lough Marketplace Americans consume more than 7.4 billion gallons of beer per year, or about 35 gallons of beer annually per person over the age of 21! This amounts to a potential market of roughly 25 million gallons of beer per every million people in your state, per year. According to US Brewers Association, between 2004 and 2006, the market for emerging microbrewery craft beer brands in the US grew by 31.5 per cent. Consumers often view micro-brewed craft beer as higher quality independent beer alternatives. With over 40 million Irish descendent Americans in the US(13% of the total population), the market for Irish beer has always been strong and has proven itself through a paved path of success for other Irish brands, such as Guinness and Kilkenny. Page 4 of 16
  6. 6. This growing market acceptance, coupled with positive attitudes towards Microbreweries and Craft Breweries by state legislation, provides us with a unique and compelling opportunity to stage Strangford Lough Breweries in North America. What is a Microbrewery? A brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75% or more of its beer sold off site. Microbreweries sell to the consumers by one, two, or all of the following methods: 1. The traditional three-tier system, brewer to wholesaler to retailer to consumer. 2. The two-tier system, brewer acting as wholesaler to retailer to consumer. 3. Directly to the consumer through carry outs. Strangford Lough is a traditional Irish craft beer, and keeping with our rich heritage we are establishing craft brewing locations in North America in order to deliver the freshness and quality of beer that our brand demands on a localized basis. This presents an outstanding opportunity for qualified and savvy entrepreneurs to capitalize from purchasing and operating a licensed Strangford Lough Microbrewery. License rights are granted on an exclusive basis for an entire state, which allows excellent growth potential. A few traditional examples of where Strangford Lough brews have thrived include: Bars, Pubs and Night Clubs Traditionally, this is one of the strongest markets for Strangford Lough. Our brews have won numerous awards at pubs throughout Ireland and Great Britain; including being awarded the 2007 Champion Beer as voted by the patrons of the prestigious O‟Neil‟s Irish Pub chain. Restaurants, Bistros and Banquette Facilities Another high profile and lucrative market for our beer is restaurants and other dining establishments. Restaurants choose to offer distinct brands of high quality brewed product, where taste prevails over convenience. Strangford Lough traditional beers offer restaurant patrons exactly that. Retail Sales The retail market for Strangford Lough has also proven to be very successful and has yielded profitable results. Retail outlets include beer and wine stores, liquor stores, gas stations, convenience stores, and hotel chains. As the brewery owner, you can direct market to these retailers and set up sales accounts, or establish sales accounts with one or more of the many established beer distributors that currently service these types of retailers. Page 5 of 16
  7. 7. Brewery Direct Retail Sales To increase profit margins on a per-bottle basis, microbrewery locations can also be outfitted with a retail storefront to sell our beer brands directly to consumers, subject to local state regulations. Special Events Sporting events, concerts, festivals and, of course, St.Patrick‟s Day events also offer a perfect opportunity to market and sell quality Strangford Lough Irish Beers. Strangford Lough Brewers Association Stangford Lough believes that there is marketing power in numbers. This is why we will establish a Strangford Lough Brewers Association, and all of our independent licensed brewers will be encouraged to join and to actively participate. The purpose of the association is to share information, strategies, and plans, in terms of sales, marketing, operations and business planning. Through this association, the formation of cooperative advertising and marketing campaigns reaching nationally will be initiated helping all of our brewing partners attain maximum profitability and success! 2.0 Strangford Lough Microbrewery Opportunity Strangford Lough is proud to provide qualified entrepreneurs with a real, exciting, and profitable business opportunity to become a Licensed Strangford Lough Brewer & Distributor. We intend to open 42 microbreweries, making us, and you the largest independent brewing chain of quality and authentic Irish Beer in North America. To meet our objectives we need skilled and successful business- minded entrepreneurs that want to own and operate their own successful and profitable independent business, as well as Business people that share our passion for traditional, localized, and friendly business practices. Page 6 of 16
  8. 8. What do you need to succeed as a microbrewery owner operator? Our logistics chain is very straightforward. Once your microbrewery is built and operational, Strangford Lough ships authentic processed WORT directly from Ireland to your microbrewery, which you process into our quality Irish beer brands. The finished products are bottled and shipped from your facility to your customers. Monthly production targets are set at a minimum of 50,000 liters per month (150,000 x 330 ML Bottles). However, production volumes are easily increased to 75,000 liters per month by adding additional equipment, which increases the investment by only $50,000. We pride ourselves with being close to our customers and this is why we have chosen a multi-plant business model. This enables us to build and operate plants throughout North America in close proximity to our customers, thereby easily conforming to local regulations, reducing delivery costs / times, and improving service levels and the overall customer experience. Comprehensive Business Package The Strangford Lough Licensed Microbrewery Opportunity is a comprehensive business package. We provide everything that is required to setup and operate your brewery, including: • Fully automated proprietary brewing equipment and installation • Comprehensive and ongoing training and support • Assistance in securing federal and state licensing and permits • Award-winning and popular brewing recipes • Trademark protection and strong brand awareness • Authentic Strangford Lough wort shipped directly from Ireland • Exclusive area license and distribution rights • FDA approved packaging and labels • Access to Strangford Lough marketing materials • Comprehensive equipment warranty • Volume buying power • Proven sales and marketing strategies • Expansion, growth and profit potential • Flexibility to tailor your pricing, marketing campaigns and packaging to meet local market demands • Low investment and operating costs • High ROI and profits • Strangford Lough Brewers‟ Association membership Page 7 of 16
  9. 9. Investment The initial investment to purchase a Strangford Lough Brewery license territory is $100,000. Product can be initially be sourced from other SLBC brewers to grow cashflow. After the first year, an additional investment of $500,000 USD will be required to build your brewery. Here is the availability of our territories: United States 1. California –License to distribute only in both North and South. 2. Texas -Available 3. New York -Sold 4. Florida –Pending Sale 5. Illinois, Iowa -Sold 6. Pennsylvania -Sold 7. Ohio -Available 8. Virginia, West Virginia, District of Columbia -Available 9. Michigan –Pending Sale 10. Georgia –Pending Sale 11. North Carolina –Pending Sale 12. New Jersey -Sold 13. Arizona, New Mexico -Sold 14. Maryland, Delaware -Available 15. Massachusetts -Sold 16. Washington -Sold 17. Oklahoma, Kansas -Sold 18. Indiana -Available 19. S. Dakota, N. Dakota, Nebraska-Available 20. Tennessee -Available 21. Missouri -Sold 22. Mississippi, Arkansas -Available 23. Wisconsin –Pending Sale 24. Nevada, Utah -Sold 25. Minnesota -Available 26. Colorado -Available 27. Alabama -Available 28. Connecticut, Rhode Island –Available 29. South Carolina –Pending Sale 30. Louisiana -Available 31. Kentucky -Available 32. Oregon –License to distribute only 33. Maine, Vermont, New Hampshire –Available 34. Idaho, Montana, Wyoming –License to distribute only 35. Hawaii -Available 36. Alaska –Available Canada 1. Ontario -Available 2. Quebec -Available 3. British Columbia -Available 4. Alberta -Available 5. Saskatchewan, Manitoba -Available 6. N. Brunswick, Nova Scotia, P.E.I, Newfoundland -Available Page 8 of 16
  10. 10. Brewery Potential Profit Revenue Production Volume Per Month Notes Production Volume 50,000 L 75,000 L 1 Wholesale Revenue $ 127,500.00 $ 191,250.00 2 - Material Costs $ 72,000.00 $ 108,000.00 3 Income $ 55,500.00 $ 83,250.00 Operation Expenses Location Lease $ 4,000.00 $ 4,000.00 4 Building Utilities $ 1,200.00 $ 1,800.00 5 Wages $ 6,400.00 $ 9,600.00 6 Communications $ 1,000.00 $ 1,500.00 Banking/Accounting $ 1,275.00 $ 1,912.00 7 Equipment Maintenance $ 750.00 $ 1,000.00 8 Insurance $ 1,500.00 $ 2,250.00 9 Transportation $ 1,500.00 $ 2,250.00 Regulatory Permits $ 500.00 $ 500.00 10 Miscellaneous $ 500.00 $ 750.00 Total Operation Expenses $ 18,625.00 $ 25,562.00 Marketing Expenses Commissions $ 4,462.00 $ 6,693.00 11 Marketing Budget $ 8,925.00 $ 13,388.00 12 Total Marketing Expenses $ 13,387.00 $ 20,081.00 Annual License Fee Renewal $ 1,500.00 $ 1,500.00 13 Pre Tax Profit Per Month $ 21,988.00 $ 36,107.00 14 Pre Tax Profit Per Year $ 263,856.00 $ 433,284.00 14 Page 9 of 16
  11. 11. Brewery Potential Profit Notes Notes: Strangford Lough Brewing Company has endeavored to provide accurate revenue, expenses and profit projections based on available industry and government information 1. Additional processing equipment can be purchased at a price of $50,000 to increase production volume from 50,000 liters to 75,000 liters per month. 2. National average wholesale price of $2.55 per liter packaged in 12oz bottles from Brewer to Distributor. (Each liter of product will produce 3 x 12oz bottles). 3. Cost per liter is currently $1.44 or $.48 per 12oz bottle, inclusive of all ingredients and packaging, ready to ship. Future targeted cost will be $1.38 per liter as we improve internal efficiencies. This will reduce the material costs to produce 50,000L by $14,000 / month and $21,000 / month for 75,000L 4. National average based on 3,500 square feet of industrial space. 5. Estimate based on national average utility and water rates. 6. Based on 2 full time employees earning $20 per hour inclusive of employer contributions. 7. Based on 1% of projected gross revenue. 8. Estimated equipment maintenance costs. 9. Based on quoted group rates inclusive of general and comprehensive liability. 10. Average estimate, each state establishes their own permit costs. 11. Commission sales person for brand sales and support based on 3.5% of projected gross revenue. 12. Marketing and promotional budget based on 7% of gross revenue. 13. Annual license fee is $18,000 14. Excluding federal and state alcohol sales taxes. Tax rates vary per state. Page 10 of 16
  12. 12. 3.0 Brewmaster Technology Brewery Licensing Strangford Lough has developed a fast-tracked licensing process that ensures that you have your brewery up and running in the shortest time frame possible. The sooner you are equipped to brew Strangford Lough products, the more beneficial it is to all parties involved. As each state is responsible for governing its own liquor industry, each brewery will have a customized, distinct component to it, with the brewery owner ultimately being responsible for licensed operations. Strangford Lough assists all licensed brewery owners to secure all federal and state permits as required. The licensing process follows a three-tiered system of Brewer, Distributor and Retailer. Ideally, each owner will have both a brewers and a distributor‟s license with a retail store on premises. In states where this may be prohibited, Strangford Lough has granted you the exclusive distribution rights within the state and is here to help set-up your own licensed distributors. We understand the licensing and permitting processes within each state and will dedicate ourselves to work with you throughout the entire process. Brewing Process Strangford Lough‟s Brewing process removes the complexities of traditional brewing methods. We do this by breaking the entire brewing process into 2 distinct cycles; wort Production and Fermenting. Strangford Lough‟s business model for beer production is designed for flavor consistency and attractive financial leverage across a multi-unit brewery concept. All of our wort is authentically produced in Ireland, giving us the ability to consistently control the flavor inputs of the brewing cycle and to ensure that the Irish brewing traditions are maintained. We also remove from the individual breweries, the capital cost of equipment to produce wort, and the costs associated with operating a wort plant. Page 11 of 16
  13. 13. The fermenting process is where the Strangford Lough Microbrewers take over: Wort is shipped in a customized tank to each Microbrewery location. After off-loading into fermenters, you pitch yeast and finish the production cycle through fermentation, maturation, and filtering. Strangford Lough trains and certifies all brewery operators in these processes. Shipping wort instead of finished beer allows us to avoid the complex legal hurdles of shipping alcohol across federal and state lines, while maintaining traditional Irish quality and taste. Corporate Microbreweries Distribution Produce and ship Ferment, filter Finished products WORT from Ireland and bottle distributed Advanced Wort Technology Wort is the liquid extracted from mashing during the beer brewing process. Wort contains the sugars that will be fermented by the brewing yeast to produce alcohol. Our advanced wort is produced in Ireland using proprietary technology, allowing: • Yeast to more efficiently interact with the wort increasing yield and reducing fermentation time. • Greater sterility and purity of product creating long life. • Efficient usage of the wort product with no costly waste by-products. Key Advantages of Strangford Lough Advanced Wort • Cost efficient production • Simple brewing skills required, no need for Brewmaster • Fast fermentation time • Superior control of the final beer quality and consistency • Complete security • Minimal processing waste Page 12 of 16
  14. 14. Exclusive State Distribution Included with your Strangford Lough Microbrewery are the exclusive state (or multiple states, depending on the licensed area) production and distribution rights to the Strangford Lough brand and associated products, present and future. This includes, but is not limited to; beer, promotional goods, proprietary brew equipment, volume supply pricing, advanced wort technology, use of brand names and Trademarks, and sponsored events. You have the ability to expand one brewing location, or open multiple brewing locations within your licensed area to service localized markets. No royalties are charged on product sales. Microbrewer Owners have the choice to market through established beer and spirit distributors, or to self-distribute products for higher margins. Most microbrewers even have the ability to setup a retail store outlet on-premises*. With the high demand of Strangford Lough Products and our proven marketing model, you are assured to start earning revenues and profits as soon as your doors open for business. *Regulated by individual States 4.0 Strangford Lough Market Leadership Traditional Irish Recipes Strangford Lough Brewing Company is located in an area of natural beauty and wildlife, with a historical tradition going back 8000 years. The company has a range of beers associated with historic Irish figures such as St. Patrick and Magnus Barelegs, the Viking King buried in Downpatrick. Barelegs Brew is named in honor of King Magnus Barelegs who reigned as King of Norway from 1093 until his death in 1103. His campaigns led to warfare in Ireland, Britain, and the Isle of Man. In 1103 he raided Downpatrick to replenish supplies. He was ambushed and killed by the Ulaid, Men of Ulster. On the day of his death, King Magnus was described as quot;regaled with a helmet on his head, a red shield in which was a gilded Lion and girt with the sword Legbiterquot;. Legbiter's hilt was tooth (ivory) and the hand grip wound about with gold thread and the sword was extremely sharp. St. Patrick, Magonus Sucatus Patricius, the son of the Roman Decurion Calpernius, was reputedly born in modern day Wales. Captured by 'Nial of the Nine Hostages' in the early 5th century, he was sold as a slave to the Irish Chieftain Milchu at Slemish, County Antrim. Escaping Ireland after six years, he later returned bringing Christianity. St. Patrick's missionary work covered the northern part of Ireland, where Christianity had not penetrated. At Slane, he converted King Laogaire to Christianity and at Croaghpatrick in Mayo he is alleged to have driven the snakes out of Ireland. He died at Raholp on 17 March 461AD and is buried on the 'Hill of Down', Downpatrick. Page 13 of 16
  15. 15. St. Patrick set sail for Ireland in 432AD, landing initially at Inver Dee, Co Wicklow, and then in Strangford Lough at the village of Raholp. He converted the local Chieftain Dichu to Christianity, building his first church at Saul. Returning to Slemish, the scene of his captivity, he made Armagh the primacy of the Christian Church in Ireland. Strangford Lough Brewing Company holds the Trademark to the name St. Patrick in North America, which assists in the promotion and protection of our beer brands. Authentic Irish Brands “Tasting is believing” Barelegs Brew A full flavored Ale, which is bottle conditioned, copper in color, and with a fresh fruit and malt fragrance. It has a refreshing quality and pronounced hoppy finish. Legbiter Brilliant golden ale with an inviting citrus fragrance of late added Golding hops. The fine hop and light malt aromas carry through to the palate to give a full but refreshing clean bitter flavor. St. Patrick's Ale A deep copper traditional Irish ale with highly developed and complex flavors. A multi-brew with a fresh aroma of Golding hops. St. Patrick's Best Light and refreshing on the palate, our best bitter has a malt and hops aroma. Light amber in color, this smooth bitter has hints of caramel and shamrock. St. Patrick's Gold Our smooth, yet powerful wheat beer is unusually refreshing on the palate. Golden in color, St. Patrick's Gold has a citrus flavor provided by the zest of real oranges and lemons. Page 14 of 16
  16. 16. National Quality Standards Strangford Lough strives for the highest quality in all aspects of our business, and will settle for nothing less: • The highest quality brews • The highest quality brewery owner / operators • The highest quality raw materials • The highest quality brew equipment We follow and exceed all standard cleaning, sanitizing, and testing brewery procedures, paying strict attention to the wort, which is chilled to 400F and stored in a 370F cooler prior to shipment. Further, we have an in house lab, which enables ongoing testing of wort and brews to ensure the highest quality finished product. Every Brewery Owner is trained and follows a set of standard operating procedures for the brewery operations at each location. Our Brewery Field Manager, trained in brewing science, oversees the work of all Brewery Managers. Certification All Strangford Lough Brewery Owner / Operators will be required to attend and pass Strangford Lough Brewery Certification. Training will be conducted on-site at your Brewery. Time will be spent reviewing the Strangford Lough Operations Manual and learning about brewing technology, as well as on the floor learning, hands-on, how to operate Strangford Lough brewing equipment, first-aid and work safe practices, as well as the day-to-day operations of the brewery. Strangford Lough will provide further support to all plant owners and production staff via online training workshops, telephone conferences, operations visits, and our annual Strangford Lough Brewers conference. Page 15 of 16
  17. 17. 5.0 What is the Next Step? The next step is call our North America representative, John O‟Keeffe, at (913)660-6214 to further discuss this exciting and profitable opportunity and discover how you can become part of the Strangford Lough Brewing Team! As the licensee for Missouri, Kansas, and Oklahoma, John will be able to answer your questions and assist you with creating a business plan that will fit your current situation. He has a ready made business plan example that can be used as a guide in helping you author your own plan. In addition, John has relationships with several financial institutions to assist in securing financing for your brewery. Here is a list of those companies: If securing the $500,000 to $600,000 brewery investment is going to be difficult, you have the option of purchasing just the license agreement for an available territory and then purchasing finished product from one of our established breweries. After building up your cash flow during the first year, you will be expected to secure the additional funding to get your brewery up and running. If you have ever wanted to own a successful microbrewery business, you owe it to yourself to look into this opportunity! Thank you, and we look forward to talking with you in the near future.. Cheers, Strangford Lough Brewing Company Page 16 of 16