OAKSHIRE BREWING A STORY OF BOOTSTRAPPED GROWTH. Oakshire, Inc Madera St Eugene, OR P: F:

Transcription

1 OAKSHIREBREWING ASTORYOFBOOTSTRAPPEDGROWTH Oakshire,Inc. 1055MaderaSt Eugene,OR97402 P: F:

2 OurStory WillameUeBrewery,LLC ItBeganasaHomebrewingHobby Jeff shobby WithBrotherChris Help PlansFormedOverBeersin2003&2004 ClearMarketOpportunity LLCRegisteredin2004 Willame4eBreweryFoundedbyAlthouseBrothers TwoSeedInvestorsCommitin2005 JeffHeadsthePlantInstallaMon October2006 TheInauguralBatch IniMallyFocusedonDraQBeer Self DistribuMonEugene/Corvallis DistributorinPDX 2006Barrelage=6 2007Barrelage= Barrelage=1138 2

3 OurFirstPivot

4 Oakshire Brewing Our Brand Independence Strength Community 4

5 Following6000%Growth,Banksignoreus Summer2008 ThanksLehmanBros Whodoweknow?Whatdowe know?whatarewewillingto lose? Aneffectualapproachtogrowth capital 5

6 Innova\on Under Financial Constraints Tank Sponsorship Program ( ) Sub$tle: The value of a strong social network (Who do I know? How much social capital am I willing to lose?) 6

7 Leadership&History CompanyGrowthLedbyJeffAlthouseasGM FirstEmployeesHiredin2007 ConMnuousPlantUpgrades CapacityAddedAnnually OperaMonsProfessionalizedFurtherEachYear March2009 Ma4VanWykBecomesBrewmaster 12YearsofIndustryExperience 2006GABFBrewmasteroftheYear 10 TimeGABFMedalist 2WorldBeerCupMedals 2009Barrelage= Barrelage=3244 7

8 Chart Leadership & History Dec 2011 Travis Hanson Becomes OperaOons Mgr./CFO Finance, Univ. of Portland MBA, Univ. of Oregon Strong Team Background ExcepMonal Leader Professionalized AccounMng and Inventory Systems Quickly Won Over Our EnMre Team 2011 Barrelage = 4804 Profitable in

9 AnnualBarrelsSold 6,500 4,804 3,244 1, ,

10 MarketOpportunity ConOnuedMarketPenetraOononExisOngProductMix 22ozBogleSalesConMnuetoGrow FullChainOperaMons Safeway,RiteAid,Albertson s,trader Joe s,fredmeyer/kroger,etc. ConMnueDraQPenetraMoninExisMngTerritories DiversifyProductMix CraWBeerinCans OpportunitytoBecomeNWLeaderinCategory LeverageDistribuMonNetworktoGainPlacements 10

11 MarketOpportunity MainstreamingofCraWCans 11

12 MarketOpportunity March

13 Spring2012 EquityRaiseforGrowth,ButS\ll Bootstrapping SOcktoourBootstrappingRoots BorrowLess,ControlMore FutureCapacityWillBeIncreasedUpto5x(ExisMngBuilding) StartwithCashGeneraOng AcOviOes Wherearethemargins? Hasouraffordableloss calculuschanged? NowwecontroltheconversaOon, Wearenow Bankable Banksthatusedtoignoreus,nowcallalltheMme Whatfinancialdisciplinehasbootstrappingtaughtus? 13

14 Inbound Logistics obtaining raw materials and labor Raw materials, Inbound Logistics $0.25/pint Financing $0.05/pint Operations transforming raw materials into services Manufacturing Operations ($.20) {Total COGS Range 40-80%/ Sales} 60% Gross Margin Packaging Storage Selling Costs $0.10/pint Outbound Logistics delivering the services to customers Marketing & Sales promoting the services Distribution Retail COGS ($0.07+ COGS ($1.06) Labor($.04/ Labor($0.50) Pint) Other($0.43) 25% margin 30% margin After-Sales Service service after the sale of products and services Oregon Craft Beer 1 pint at retail $4.00 $0.25+$0.05 $.20+$0.10+ $ Mrgn@$0.23 Mrgn@$.30

15 Inbound Logistics obtaining raw materials and labor Operations transforming raw materials into services Outbound Logistics delivering the services to customers Marketing & Sales promoting the services After-Sales Service service after the sale of products and services Industry Average COGS Craft Beer $0.25/pint Finance Operations $0.25/pint $0.25+$0.05 Tasting Room Business Model I Love Beer (Self Assessment) My friends and family love my beer (Network) I don t need a distributor, I can sell on premise (Unique Business Model) Financial Management (Internal) With margins this big, I can bootstrap future growth internally I can generate cash immediately $3.70 Oregon Craft Beer 1 16 oz pint $4.00

16 Inbound Logistics obtaining raw materials and labor Operations transforming raw materials into services Outbound Logistics delivering the services to customers Marketing & Sales promoting the services After-Sales Service service after the sale of products and services Industry Average COGS Craft Beer $0.25/pint Finance Operations $0.25/pint Effectuation Still Guides Decisions Keep Cash, Use it Efficiently Make Choices that Suit Our Goals, Vs. Someone Else Diversify Operations Oregon Craft Beer 1 16 oz pint $4.00 $0.25+$0.05 $2.24 ~ $1.36 margin