Overall

Document is designed for <15 bbl brewhouses and <5,000 bbl of annual beer production.

General Assumption ValueBrewing Volume (bbl) 5,000Number of Pub Seats 50Sales Taxes (% taxable sales) 5.5Startup Time Without Revenue (months) 5Required Startup Capital (Min or Max) MaxInitial Sweat Equity (% total equity) 0.0Loan Principal Payments ($/yr) 0.00Loan Interest Payments ($/yr) 0.00

Pub Sales Constraint Low Beer High BeerHouse Beer Sales (% pub sales) 30.0 100.0Brewing Volume per Pub Seat (bbl) 2.7 4.6

Expected Sales Mix ValueHouse Beer Sales, Pub (% pub sales) 100.0Other Beverage Sales (% pub sales) 0.0Food Sales (% pub sales) 0.0Brewing Volume, Kegs (% wholesale) 60.0Brewing Volume, Bottles (% wholesale) 40.0

Projected Operation ValueBrewing Volume per Pub Seat (bbl) 4.6Brewing Volume, Pub (bbl) 230Brewing Volume, Wholesale Kegs (bbl) 2,862Brewing Volume, Wholesale Bottles (bbl) 1,908Cash Flow (% startup cost) 8.2Break-Even Sales ($) 507,544.38

Brewery

General Assumption ValueBrewhouse Volume (bbl) 15.0Batch Size (number of brews) 2Number of Wooden Barrels 2Serving Losses (% brewed) 8.0Kegging Losses (% brewed) 2.0Bottling Losses (% brewed) 2.0State Excise Tax ($/bbl) 1.00Federal Excise Tax ($/bbl) 7.00Repairs and Maintenance ($/bbl)* 1.00House Yeast Reuse (generations) 10Time Between Fillings, WS Kegs (days) 28Bottling Crew (employees per shift) 4Bottling Rate (batches per shift) 1Batch Volume (bbl) 30.0

Employee Pay ($/FTE) Qty (FTE) Exp ($)Brewmaster 40,000.00 1.0 40,000.00Staff Brewer/Cellar Person 32,000.00 1.1 36,305.99Bottler 28,000.00 2.6 73,228.38

Process Expense Unit (u) Exp ($/u) Brew (u/bbl) Btl (u/bbl)* Brew ($/bbl) Btl ($/bbl)Enerco FG Lactic Acid 88% gal 32.54 0.02 0.00 0.65 0.00O2* lb 0.20 0.01 0.00 0.00 0.00CO2* lb 0.20 8.89 0.00 1.78 0.00Paul HS-Series Filter Sheets sheet 1.33 0.00 0.00 0.00 0.00Alkali Cleaner - Five Star PBW lb 2.16 0.60 0.20 1.30 0.43Acid Cleaner 1 - Five Star AC5 gal 7.96 0.04 0.01 0.32 0.11Acid Cleaner 2 - Five Star AC6 gal 12.04 0.30 0.00 3.61 0.00Sanitizer - Five Star Saniclean gal 14.83 0.02 0.01 0.30 0.10

Total Direct Operating Expenses 7.95 0.64

Utility Service Unit (u) Exp ($/u) Brew (u/bbl) Btl (u/bbl)* Brew ($/bbl) Btl ($/bbl)H2O 1000 gal 1.30 0.25 0.08 0.33 0.11Sewer Costs 1000 gal 1.56 0.22 0.08 0.34 0.13Electricity kwh 0.08 35.00 15.00 2.80 1.20Natural Gas therm 0.14 3.70 0.00 0.52 0.00

Total Utilities 3.98 1.44

Bottling Material Unit (u) Exp ($/u) Qty (u/bbl) Exp ($/bbl)Bottle, Meheen Estimate single qty 0.14 330.67 46.29Crown, Meheen Estimate single qty 0.01 330.67 3.31Label, Meheen Estimate single qty 0.06 330.67 19.846-Pack Carrier, Meheen Estimate single qty 0.30 55.11 16.53Case Box, Meheen Estimate single qty 0.60 13.78 8.27

Total Bottling Materials 94.24

Recipe Variable, Year 2 Std Ales Std Lagers Specialty StrongSales Fraction (% volume) 40.0 20.0 35.0 5.0Time in Fermentation Tank (days/batch) 21 42 28 56Time in Maturation Tank (days/batch) 0 0 0 0House Yeast Pitches (%) 100.0 100.0 60.0 60.0Malt Expense ($/bbl) 40.00 40.00 40.00 100.00Hops Expense ($/bbl) 6.00 4.00 10.00 8.00Other Ingredients Expense ($/bbl) 0.00 0.00 5.00 10.00New Yeast Expense ($/bbl of batch size) 25.00 25.00 25.00 25.00Average Price + Tax, Pub ($/pint) 4.00 4.00 4.00 5.33Average Price w/o Tax ($/pint) 3.79 3.79 3.79 5.05Average Price w/o Tax, Keg ($/0.5-bbl) 85.00 85.00 85.00 110.00Average Price w/o Tax, Bottles ($/case) 21.25 21.25 21.25 23.65Volume Sold, Pub (bbl) 92.0 46.0 80.5 11.5Volume Sold, Kegs (bbl) 1,144.8 572.4 1,001.7 143.1Volume Sold, Bottles (bbl) 763.2 381.6 667.8 95.4Total Volume Sold (bbl) 2,000.0 1,000.0 1,750.0 250.0Quantity Sold, Pub (pints) 22,816 11,408 19,964 2,852Quantity Sold, Kegs (0.5-bbl) 2,290 1,145 2,003 286Quantity Sold, Bottles (cases) 10,515 5,258 9,201 1,314Sales, Pub ($) 86,506.16 43,253.08 75,692.89 14,408.68Sales, Kegs ($) 194,616.00 97,308.00 170,289.00 31,482.00Sales, Bottles ($) 223,448.00 111,724.00 195,517.00 31,085.56Sales Frequency (batches) 66.7 33.3 58.3 8.3Volume Brewed, Pub (bbl) 100.0 50.0 87.5 12.5Volume Brewed, Kegs (bbl) 1,168.2 584.1 1,022.1 146.0Volume Brewed, Bottles (bbl) 778.8 389.4 681.4 97.3Total Volume Brewed for COGS (bbl) 2,046.9 1,023.5 1,791.1 255.9Brew Frequency for COGS (batches) 68.2 34.1 59.7 8.5Fermenter Usage for COGS (days) 1,433 1,433 1,672 478Maturation Tank Usage for COGS (days) 0 0 0 0House Yeast Pitches for COGS (qty) 68.2 34.1 35.8 5.1House Yeast Usage for COGS (days) 1,433 1,433 1,003 287Total Malt Expense ($) 81,877.55 40,938.78 71,642.86 25,586.73Total Hops Expense ($) 12,281.63 4,093.88 17,910.71 2,046.94Total Other Ingredients Expense ($) 0.00 0.00 8,955.36 2,558.67Total Yeast Expense ($) 441.15 220.58 18,142.32 2,591.76Total Ingredient Expenses (% sales) 18.7 17.9 26.4 42.6

Production Variable ValueHouse Beer Sales, Pub ($) 219,860.82House Beer Sales, Wholesale ($) 1,055,469.56Total House Beer Sales ($) 1,275,330.38Volume Brewed, Pub (bbl) 250.0Volume Brewed, Kegs (bbl) 2,920.4Volume Brewed, Bottles (bbl) 1,946.9Total Volume Brewed (bbl) 5,117.3Taxable Beer Volume (bbl) 5,020.0Brewing Frequency (batches) 171Brewing Frequency (batches/wk) 3.3Avg Time in Fermenter (days) 29Avg Time in Maturation Tank (days) 0Fermentater Usage (days) 5,015Maturation Tank Usage (days) 0Avg Price w/o Tax, Pub ($/16-fl oz) 3.85Avg Price w/o Tax, Keg ($/0.5-bbl) 86.25Avg Price w/o Tax, Bottles ($/case) 21.37House Yeast Fermenter Use (%) 82.9House Yeast Pitches per Purchase 116House Yeast Pitches (qty/yr) 143House Yeast Purchases (qty/yr) 1.2

Equipment Variable ValueRequired Number of Fermenters 14Required Number of Brite Beer Tanks 1Required Number of 1/2-bbl Kegs 520

COGS Variable ValueIngredient Expenses ($) 289,288.92Bottling Expenses ($) 179,809.92Cost of Goods Sold ($) 469,098.84Cost of Goods Sold (% sales) 36.8

Operating Expense Value ($)Salaries, Wages and Benefits 149,534.37Process Expenses 41,917.75Utility Services 23,135.13Excise Taxes 40,160.00Repairs and Maintenance 5,117.35

*Needs more research.

Facility

Sizing Variable ValueMill Sizing (sq ft/bbl) 1.5Grain Storage (sq ft/bbl/yr) 0.25Baseline Hot Liquor Tank Space (sq ft) 6.6Hot Liquor Tank Space Increase (sq ft/bbl) 0.9Hot Liquor Tank Area (sq ft) 20.1Baseline Brewhouse Space (sq ft) 58.1Brewhouse Space Increase (sq ft/bbl) 3.9Brewhouse Area (sq ft) 116.6Baseline Fermenter Space (sq ft) 4.1185Fermenter Space Increase 1 (sq ft/bbl) 1.3039Fermenter Space Increase 2 (sq ft/bbl2) -0.0109Single Fermenter Area (sq ft) 33.4Chemical Drum (sq ft) 4.0Wine Barrel Space (sq ft) 6.8Filter Space (sq ft) 10.0Baseline Brite Tank Space (sq ft) 4.9982Brite Tank Space Increase 1 (sq ft/bbl) 1.2571Brite Tank Space Increase 2 (sq ft/bbl2) -0.0104Single Brite Tank Area (sq ft) 33.4Keg Washer Space (sq ft) 15.0Bottling Line Space (sq ft)* 75.0Keg Space, 1/2-bbl (sq ft) 1.8Keg Storage Stack (number of kegs) 3Bottling Materials Space (sq ft/bbl)* 2.5Bottling Materials Storage Time (weeks)* 4.0Cold Room Space, Bottles (sq ft/bbl) 2.0Wholesale Cold Storage Time (weeks) 2.0Minimum Office Space (sq ft) 64Office Space Increase (WS sales/sq ft) 5000.00Free Space in Brewery (%) 55.0Serving Keg Stack (number of kegs) 2Free Space in Cold Storage (%) 55.0Bar Seats (% total seats) 20.0Number of Bar Seats 10Number of Table Seats 40Bar Depth (ft) 9.0Bar Serving Lane Depth (ft) 6.0Bar Seat Width (ft) 3.0Additional Bar Width (ft) 2.5Table Space (sq ft/table seat) 15.0Kitchen Sizing (food sales/sq ft)~ 545.00Minimum Kitchen Area (sq ft) 250Bathroom Space (sq ft/seat) 3.0Minimum Bathroom Area (sq ft) 150Milling/Grain Storage Area (sq ft) 1,302Brewery Area (sq ft) 3,206Cold Beer Storage (sq ft) 1,365Office Area (sq ft) 275Bar Area (sq ft) 488Table Area (sq ft) 600Kitchen Area (sq ft) 0Bathroom Area (sq ft) 150Brewery and Office Areas (sq ft) 6,147Pub Areas (sq ft) 1,238Required Facility Area (sq ft) 7,385

~NRA = $8,175.00 food sales per seat. Restaurants That Work = 15 sq ft/seat. $8,175.00/15 = $545/sq ft.

Occupancy Expense ValuePurchase or Lease? (P or L) LInitial Rental Rate ($/sq ft/yr) 4.00Total Purchase Price ($) N/AInitial Insurance and Taxes ($/sq ft/yr) 1.00Initial Rent Payment ($/yr) 29,539.88Initial Insurance and Taxes ($/yr) 7,384.97Total Occupancy Expense ($/yr) 36,924.85Total Occupancy Expense (% sales) 2.9

Equipment Assumption ValueNew Brewery Minimum, JVNW ($) 159149.12New Brewery Increase, JVNW ($/bbl/yr) 85.82New Bottling Line, PPM ($) 98375.00New Brite Tank Minimum, STI ($) 4,293.06New Brite Tank Increase, STI ($/bbl) 328.78New 1/2-bbl Keg, Franke ($) 163.00New Pub Equipment ($/sq ft)* 50.00Max Used Equipment Savings (% new) 25.0

Initial Equipment Expense Cost ($)Baseline Brewery 1,060,259.12Bottling Line 98,375.00Brite Tanks 14,156.46Kegs 84,760.00Pub Equipment 61,875.00

Total Initial Equipment Expense 1,319,425.58

Renovation Expense Value (u) Cost ($)Brewery and Office (u = $/sq ft)* 50.00 307,373.48Pub (u = $/sq ft) 100.00 123,750.00Construction Management Fee (u = %) 7.0 30,178.64Contingency Capital (u = %) 5.0 23,065.11

Total Renovation Expense 484,367.23

Depreciation Assumption ValueDepreciation Time, New Equipment (yr)* 20Depreciation Time, Used Equipment (yr)* 10Depreciation Time, Renovations (yr)* 20Depreciation, Equipment ($) 65,971.28Depreciation, Renovations ($) 24,218.36

Total Depreciation Expense ($) 90,189.64

*Needs more research.

Expenses

Assumption ValueNon-Brewer Salaries 40,000.00Total Pub Sales ($) 219,860.82

Performance License BMI ($) ASCAP ($) SESAC ($)Recorded Music 270.22 330.88 180.00TV and/or Radio 121.32 126.84 0.00

Total Performance Licenses 391.54 457.72 180.00

Variable Expense, Non-Brewery Pub (% PS) WS (% WSS)Salaries, Wages and Benefits 32.2 8.0Direct Operating Expenses 6.3 0.0Music and Entertainment 0.5 0.0Marketing 2.0 3.6Utility Services 3.6 1.5Repairs and Maintenance 1.7 0.0Other Expenses/Income 0.4 0.0General and Administrative 3.3 4.5Beer Freight 0.0 3.5

COGS Variable ValueCOGS, Other Beverages (% sales) 27.4COGS, Food (% sales) 32.5COGS, House Beer ($) 469,098.84COGS, Other Beverages ($) 0.00COGS, Food ($) 0.00

Total Cost of Goods Sold ($) 469,098.84

Summary Variable ValueFixed Operating Expenses ($) 207,114.49Variable Operating Expenses ($) 512,429.04COGS + Variable Op Expenses ($) 981,527.87COGS + Variable Op Expenses (% sales) 77.0

Financing

Assumption ValueCapitalization Roundup Value ($) 5000.00Initial Inventory Purchases (months) 3

Startup Operating Expense Time (months) Value ($)Early Startup Wages 3 20000.00Standard Operating Wages 2 50794.52Direct Operating Expenses 1 1154.27Music and Entertainment 0 0.00Marketing 5 17664.22Utility Services 5 19534.23Occupancy Expenses 5 15385.35Repairs and Maintenance 2 1475.83Other Expenses 4 293.15General and Administrative 4 18250.51Brewery Process Expenses 2 6986.29Brewery Excise Taxes 0 0.00Beer Freight 0 0.00

Government License Issuer Quantity Exp ($/lic) Exp ($)Pub Liquor & Beer, Class B Municipal 1 10,000.00 10,000.00 Retail Food State 1 1,335.00 0.00 Operator's License Municipal 2 25.00 50.00Brewery Wholesale, Beer Municipal 1 25.00 25.00 Brewpub Permit Registration State 1 20.00 0.00 Alcohol Beverages Tax Bond State 1 1,000.00 1,000.00 Security Bond Coverage Federal 1 8,785.00 8,785.00

Total Government Licenses 19,860.00

Startup Expense Value ($)Legal and Accounting 15,000.00Artwork and Website 10,000.00Design and Consulting 25,000.00Initial Licenses 20,889.26Real Estate Purchases 0.00Facility Renovations 484,367.23Equipment Purchases 1,319,425.58Initial Inventory Purchases 117,274.71Initial Operating Expenses 151,538.37

Total Capital Required 2,145,000.00

Income Statement

All values are in dollars unless otherwise specified.

Variable ValueSales House Beer 1,275,330.38 Other Beverages 0.00 Food 0.00

Total Sales 1,275,330.38Cost of Goods Sold House Beer 469,098.84 Other Beverages 0.00 Food 0.00

Total COGS 469,098.84

Gross Profit 806,231.54Gross Profit (% total sales) 63.2Operating Expenses Salaries, Wages and Benefits 304,767.12 Direct Operating Expenses 13,851.23 Music and Entertainment 1,029.26 Marketing 42,394.12 Utility Services 46,882.16 Occupancy Expenses 36,924.85 Repairs and Maintenance 8,854.98 Depreciation 90,189.64 Other Expenses 879.44 General and Administrative 54,751.54 Brewery Process Expenses 41,917.75 Brewery Excise Taxes 40,160.00 Beer Freight 36,941.43

Total Operating Expense 719,543.53

Earnings Before Interest 86,688.01Earnings Before Interest (% total sales) 6.8Interest Expenses Loan Payments 0.00

Total Interest Expenses 0.00

Net Income 86,688.01Net Income (% total sales) 6.8

Cash Flow Statement

All values are in dollars unless otherwise specified.

Variable ValueOperating Activities Net Income 86,688.01 Decrease in Inventory 0.00 Increase in Depreciation 90,189.64 Increase in Accounts Payable 0.00

Total Cash from Operating Activities 176,877.65Investing Activities Decrease in Real Estate 0.00 Decrease in Equipment 0.00 Decrease in Renovations 0.00

Total Cash from Investing Activities 0.00Financing Activities Increase in Owner Contributions 0.00 Increase in Loans Payable 0.00

Total Cash from Financing Activities 0.00

Net Change in Cash 176,877.65Net Change in Cash (% total sales) 13.9

Ingredients

Ingredient Variable ValueRecipe Batch Size (bbl) 15.0Malt Expense ($/bbl) 0.00Hops Expense ($/bbl) 0.00Other Expense ($/bbl) 0.00

Malt Type Maltster Source Price ($/lb) Qty (lb/batch) Qty (lb/bbl) Cost ($/bbl)Pale Ale Briess Brewers Supply Group 0.64 0.0 0.006-Row Brewers Briess Brewers Supply Group 0.53 0.0 0.00Caramel 20L Briess Brewers Supply Group 0.79 0.0 0.00Caramel 60L Briess Brewers Supply Group 0.79 0.0 0.00Caramel 120L Briess Brewers Supply Group 0.79 0.0 0.00Extra Special Briess Brewers Supply Group 0.82 0.0 0.00Roasted Barley Briess Brewers Supply Group 0.77 0.0 0.00Chocolate Briess Brewers Supply Group 0.81 0.0 0.00Black Malt Briess Brewers Supply Group 0.81 0.0 0.00Maris Otter Crisp Brewers Supply Group 0.72 0.0 0.00Pale Chocolate Crisp Brewers Supply Group 0.72 0.0 0.00Pilsner Weyermann Brewers Supply Group 0.62 0.0 0.00Vienna Weyermann Brewers Supply Group 0.64 0.0 0.00Light Munich Weyermann Brewers Supply Group 0.64 0.0 0.00Dark Munich Weyermann Brewers Supply Group 0.64 0.0 0.00Carafa Special II Weyermann Brewers Supply Group 0.81 0.0 0.00Smoked Malt Weyermann Brewers Supply Group 0.82 0.0 0.00Acidulated Malt Weyermann Brewers Supply Group 0.90 0.0 0.00

Hop Type Form Source Price ($/lb)* Qty (lb/batch) Qty (lb/bbl) Cost ($/bbl)US Nugget Pellet Crosby & Baker 10.95 0.00 0.00US Cascade Pellet Crosby & Baker 7.95 0.00 0.00US Amarillo Pellet Crosby & Baker 9.95 0.00 0.00US Centennial Pellet Crosby & Baker 9.95 0.00 0.00US Cluster Pellet Crosby & Baker 9.95 0.00 0.00US Liberty Pellet Crosby & Baker 9.95 0.00 0.00US Willamette Pellet Crosby & Baker 7.95 0.00 0.00UK Kent Golding Pellet Crosby & Baker 15.45 0.00 0.00German Hallertau Pellet Crosby & Baker 8.95 0.00 0.00Czech Saaz Pellet Crosby & Baker 9.95 0.00 0.00Northern Brewer Pellet Crosby & Baker 10.45 0.00 0.00

Solid Adjunct Producer Source Price ($/lb) Qty (lb/batch) Qty (lb/bbl) Cost ($/bbl)Corn Sugar Unknown Brewers Supply Group 0.64 0.0 0.00Flaked Barley Unknown Brewers Supply Group 0.49 0.0 0.00Flaked Corn Unknown Brewers Supply Group 0.65 0.0 0.00Flaked Wheat Unknown Brewers Supply Group 0.52 0.0 0.00Flaked Oats Unknown Brewers Supply Group 0.51 0.0 0.00Flaked Rye Unknown Brewers Supply Group 0.60 0.0 0.00Org Raspberries* Unknown TBD 6.00 0.0 0.00Org Grapefruit* Unknown TBD 0.97 0.0 0.00Org Pumpkin* Unknown TBD 3.00 0.0 0.00

Liquid Adjunct Producer Source Price ($/gal) Qty (gal/batch) Qty (gal/bbl) Cost ($/bbl)Org Maple Syrup* TBD TBD 41.55 0.00 0.00Org Wildflower Honey* TBD TBD 14.00 0.00 0.00Belgian Candi Syrups Dark Candi North Country 33.00 0.00 0.00

Spice Producer Source Price ($/oz) Qty (oz/batch) Qty (oz/bbl) Cost ($/bbl)Org Cinnamon* TBD TBD 0.37 0.00 0.00Org Ginger Root* TBD TBD 0.17 0.00 0.00Org Coffee Beans* TBD TBD 0.32 0.00 0.00Org Green Cardamom* TBD TBD 0.63 0.00 0.00

*Needs more research.