Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Arable Brewing Company
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
== Business model == === A community-focused business model === The vision of Arable is centered around the community of the tasting room and on-premise sales. This will allow the business to have an immediate and direct connection with its patrons. The company will derive sales from the sale of beer, wine, food, and merchandise. ==== ''Beer:'' ==== The company will sell high-gravity and low-gravity beers. High-gravity beers include IPAs and stouts and will be sold for between $6 and $7. The average cost of goods sold percentage for high-gravity beer is roughly 12%. Low-gravity beers include pilsners and lagers, and the company will sell them for between $4 and $5 per pint. The average cost of goods sold percentage for low-gravity beer is roughly 8%. ==== ''Wine:'' ==== Arable will sell wines from local Oregon wineries, with a rotating selection of 3 or 4 varieties. It will sell the wine by the glass with an average price of $8 per glass. The estimated cost of goods sold percentage for this revenue segment is estimated to be 37.5% ==== ''Food and non-alcoholic beverages:'' ==== The company will not have a full kitchen in the tasting room, but it will offer a variety of cold foods, bags of chips, and soups and chilis. Once we have opened the tasting room out to Lowell, Arable Brewing will also work with the Dexter Lake Club’s Rattlesnake BBQ restaurant to provide several of their pre-made sandwiches. The average cost of goods sold is expected to be 80%. ==== ''Merchandise:'' ==== Arable will sell branded merchandise that includes t-shirts, sweatshirts, hats, and stickers. The average price of merchandise will be $30. [[File:10efde2a2dba50ad00e509328c79f152347986a8.png]] [[File:6eed7ef05704deae0e9fb10c73107d90bec3982.png]] === Operations plan === ==== ''Locations & Facilities'' ==== The company will lease one space in Eugene that will house both its brewhouse and the tasting room. This unique model will give patrons the ability to be “in the brewery” while drinking the beer that was brewed there. Once the infrastructure is available for us in Lowell, we plan to open a tasting room in downtown Lowell, creating a destination spot for locals and tourists alike to visit. The Eugene site is virtually move-in ready. Arable will need to make a few leasehold improvements to the space totaling $21,500. The company has submitted an LOI to the property landlord, and will have an executed lease for the property before the closing and disbursement of the start-up financing. ==== ''Staffing'' ==== The founders of Arable will solely handle the operations of the business in the first year of operation, with the exception of part-time seasonal tasting room staff. In his position at the Eugene brewery, Ninkasi, Chris operates a brewhouse and cellar of the same size on his own. He also manages the beer from conception to packaging. With this knowledge, Arable feels confident Cam and Chris can manage every aspect of making beer from start to finish while ensuring the highest quality. The company will hire the following additional staff: # In year one, Arable will hire two part-time seasonal tasting room staff members between June and September. Tasting room staff members will serve beer, handle cellar operations, clean up, work at events, and provide general labor. # In year two, the company will hire a part-time cellarman, who will handle fermentation, cleaning the tanks, transferring beer, and racking beer. It will also hire two part-time seasonal tasting room staff members between June and September. # In year three, Arable will hire one full-time and two part-time tasting room staff members. It will also hire a full-time cellarman. ==== ''Equipment & tools'' ==== Arable Brewing will purchase the furniture, fixtures, and equipment that it will need for its operation. The total cost of these items is expected to be $142,550 and includes everything needed for both the brewhouse and the tasting room. The furniture, fixtures, and equipment that will be purchased includes: {| class="wikitable" |5 barrel brew system |5 fermentation vessels |Steam boiler |- |Glycol chilling system |Cold storage unit/under-counter refrigerator for tap room |Draft system for pouring beers to customers |- |Keg Washer |Process hoses |Glass cleaner for tap room |} The above are examples of the high-level capital purchases that we will need to make in year 1. ==== ''Distribution'' ==== '''''Arable will not be partnering with any third party distributors. We will only self-distribute draft beers to selective establishments and collaborative partners. Third-party distribution is expensive, and they do not have the brewery's best interests in mind.''''' === Financial plan === ==== ''Key assumptions'' ==== The assumptions used in the creation of the financial forecast are based on the extensive firsthand experience of the founders. Two of the founders have 16 years of experience working in craft breweries, with both having worked at the largest brewery in the region. The owners have used this experience to develop the realistic revenue, expense, and profit projections found in the forecast. It was assumed that the financing would be received and assets would be purchased before month one of the projection period. The financing, asset purchases, and working capital can be seen as beginning balances on the balance sheet. In order for Arable to be successful, we must be able to produce top-quality beers of all styles. An essential part of being able to make that happen is a quality brewing system. This will allow our team to have better temperature control and yield better volumes. This will require capital to purchase the necessary equipment. This is a list of top-level equipment essential to our success. This equipment pricing was an average of prices from the brewery supply website probrewer.com. [[File:2821bb73fdeac4be28c053a6c3ed32fc2d2ea8e.png]] * 5 bbl Brew System = $65,000.00 * Equipment shipping costs= $5,000 * Keg shells= $3,500 * Keg washer= $4,000 * Mill = $500.00 * TC Clamps = $1,000.00 * TC Gaskets = $300.00 * Hoses = $600.00 * Process Pumps = $1,000.00 * Air Compressor = $1,000.00 * Glycol System = $9,000.00 * Wort Chiller = $1,000.00 * CO2 Valves = $450.00 * Carbonation Stones = $300.00 * O2 valves = $100.00 * Boiler = $10,000.00 * Scale = $200.00 * Fermentation vessels 5bbl = $12,500.00 * Water hoses = $300.00 * Buckets = $50.00 * Mash paddle = $100.00 * Rubbermaid trash cans = $250.00 * Big buckets = $100.00 * Ladders = $300.00 * '''Equipment cost total estimate=$116,550''' Revenue by Month [[File:E2ad593448a02a80eb27131cc66e7cd6546438d2.png]] Expenses by Month [[File:E14455b6286e021ef5c677cd263922c2e3ee8cab.png]] Net Profit (or Loss) by Year [[File:A5df1710bf85c77ac9e46d0662f8c3c5f6c0b2a.png]] Projected Profit and Loss [[File:30466e0cf0cba747e6cc144e947c168a2c5ad09c.png]] Projected Balance Sheet [[File:8d65e037b50c02c31592fc523b049b4d5d4861e.png]] Projected Cash Flow Statement [[File:79608360c9f7f2f8b4c161ba146a480faa0e89b9.png]]
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)