Building a Micro via the Nano Route. Matt McClung Co-owner & Head Brewer Schooner EXACT Brewing Co. Seattle, Washington

Transcription

1 Building a Micro via the Nano Route Matt McClung Co-owner & Head Brewer Schooner EXACT Brewing Co. Seattle, Washington

2 The Nano Years Company founded Beer released to the public Business plan completed Private funding acquired Brewed four ½ bbl batches per week 2007 production 55 bbl 2008 production 89 bbl IPA, Pale, Hefeweizen, Winter Ale and barrel aging!

3 Timeline as a Microbrewery January 1 First Expansion Begins May bbl System Operational January 9 First Brew in New Location May 16 Construction Completed October 16 New Location Construction Begins November 5 Brewery Moved 2009 Production: 360 bbls 2010 Production: 900 bbls Anticipated 2011: 1750 bbls

4 Advantages to the Nano Approach Low risk approach in terms of equipment cost investment was under 30k investment was over 200k! Relatively easy to setup Everyone likes the little guy Small production lends to creativity The time commitment is up to you

5 Disadvantages to the Nano Approach Don t quit your day job Don t lose your passion May not be possible in states w/o self-distribution It s a bad sign if you fulfill demand You still need quality insurance Hire an accountant and legal representation

6 Licensing and Tax Agencies State Level City Business License State Department: LLC formation and maintenance Department of Revenue Alcohol regulatory board Federal Alcohol and Tobacco Tax and Trade Bureau Don t forget about label approval

7 Equipment Plan and Design Finding your brew system & related equipment Keep it small, 2 bbl or less Hot water options Water filtration and treatment Fermentation and conditioning tank options Packaging options: kegs vs. bottles Storing finished product Plan for the future Build your Nano as if it is a scaled down version of your future Micro

8 Building Your Nano Location considerations High vs. low traffic areas Brewing is a wet and messy environment Make sure your location is licensable Be honest with your landlord Make the beer flow Ventilation and environment temperature Maximize your square footage Visit Micros and other Nanos in your area

9 Selling Your Craft Choose your branding wisely Testing the market On-premise or off? Building relationships: Suppliers Retailers Consumers Avoid over-committing and under-delivering

10 Industry Networking State Brewer s Guild Working with local breweries Related industries Local and state government Brewer s Association and CBC MBAA ASBC

11 The BIG Question Considering going Micro Does the passion still exist? Is there a market for YOUR beer? Do you have support of your family and friends? Can you afford to take the plunge? Is your business model financially feasible on a larger scale?

12 Business Plan Presentation is essential Plenty of examples on the Internet Hurdles Industry stats Projections The writing process Use the COGS data you ve collected as a Nano Consider peer review

13 Equipment Plan and Design Scale it up! Grain handling System volume Hot AND cold water Refrigeration Fermentation Cooperage and keg washing Aging Expansion

14 Raising Capital Your business plan is key Private options Family Friends Personal Public options Banks are a difficult funding option You will likely find yourself over budget

15 Finding & Securing your Location LOCATION, LOCATION, LOCATION Traffic Square footage Growth Work with a broker who understands your needs Negotiating a lease Free rent TI s It is a good time to be a renter

16 Building Your Micro Are you a do-it yourselfer? Architect Floor plan Permitting Partnering with your General Contractor Your role during construction Working with subs You will bleed money during construction Your built Let s BREW!

17 Growing Pains Scaling up your brew Hop contracts, ugh Malt suppliers Hiring and working with YOUR staff Volunteers Friends Employees They all need guidance and structure Inventory management

18 Self distribution Sales person Distribution Delivery person, vehicle costs Higher margin Contracted distribution Sales person Delivery with limited sales, lost in the book, lower margin Higher volume, focus on brewing and sales, marketing options Protect yourself and your brand

19 Unseen Issues Champagne tastes on a beer budget Material costs were high Unstable sub-lease Shifts in ownership Ask for more money than needed Do-it yourself mentality Be carful when purchasing used equipment Design with expansion in mind

20 Closing Questions Thank you Heather McClung Brewer s Association Washington Brewer s Guild Schooner Exact Staff Washington Breweries