Half Acre Brewery Deliverable
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Transcript of Half Acre Brewery Deliverable
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Kyle Donnelly, Ariel Magana, Berenice Arista, Adrian Makurath, Anna Biernat
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Half Acre Beer CompanyCraft Brewery here in Chicago (est. 2006)
Maurizio Fiori (Co - Founder)
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Why we are here?American Craft Beer is number one in the worldEurope alone has increased American Craft Beer imports dramatically
up 46% from 2012-2013up 37% from 2014-2015
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Why are we here?Market analysis on the beer industry trends in Europe
Sweden, Denmark, Germany, UK
Country specific reports onAlcohol and beer consumption trends and consumer behaviorsCompetitive landscape and playersPrice pointsBeer trade associationsBeer expos/events (special focus on US beers)List of potential partners to start a beer business in that country
Penetrate European Market with Half Acre Beer
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StrategyDivide Europe up and research
Sweden, Denmark, Germany, U.K., Italy, FranceResearch beer profiles
● Who, What, Why?
Assessed different battle plans for entering European MarketsExport/import, build brewpub, open specialty store?
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Sweden pop:9.5 mil.
Largest importer of American Craft BeerImported 43,000 barrels in 2013 (~16%)
Spends 1.3 billion usd on beer annually
Government restricts sale of alcohol to government owned stores“Systembolaget” Purchase age 20+
Brooklyn BrewerySecond largest market outside New York
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Germany pop: 82 mil.92% of sales beer (ABV 2.5%-6%)Beer consumption increase by 2.8% in 2014Spent 9.4 billion on beer in 2014Eric Ottaway, the general manager of Brooklyn Brewery, “sells a 12-ounce bottle of Brooklyn Lager in upscale grocery stores for the equivalent
of $4.20 — almost three times its typical American price.”New trend in germany “taste for american beer”
younger populationamerican style breweries
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GermanyFestivals
Charlotte Beerfest Charlotte Oktoberfest
Erlangen BergkirchweihBremen FreimarktKulmbach BierwocheInternational Berlin Beer
FestivalStuttgart Cannstatter
Volksfest
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United Kingdom pop: 64.1 mil.Spends $393.19 annually, per person, on beerGreat Britain imports 22,320 barrels of american craft beerBrands like Sierra Nevada and Sam Adams are easy to find in the UKAt the Great British Beer Festival, the U.S. Brewers Association sponsored the
International Beer Without Borders area and featured 180 beers from 26 American craft brewers
Sales tax for beer imports are 20%Import restrictions
Personal imports of alcoholic drinks from outside the EU are subject to health and trade regulations (high probability)
The higher the alcohol by volume, the higher the import duty paid by the importer.
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United KingdomGreat British Beer Festival (Aug. 11-15th, Olympia, London)
will host over 55,000 drinkers across two halls (one big, one small)each hall will have bars serving ales from hundreds of breweries Offers food and merchandise stalls
Plus side with the UK?no language barriers
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Francepop. 66 mil.
Spends 4b USD on beer annually (about $3.00 per litre)Duty Free, 20% Sales tax, Excise of €43.98 ($48.70 USD)per hectoliterMany bars are owned or heavily financed by international giantsCraft beer scene is on its beginning stages and growing rapidly
“Craft beer fits perfectly with the ‘eat less, eat better’ trend that we see in Paris,” says Abergel of Brasserie Parisis.
Deck & Donohue beers were available at 20 bars and restaurants within two months of opening.
Over 500 breweries nationwideBeer consumption in France is Europe’s second-lowest, after Italy
only 16% of drinkers choose beerOverall beer sales down 1.7%, craft beer sales up 8.8% (NY Times
2013)
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Italypop. 61.1 mil.
Spends 1.8b USD on beer annually (about $2.20 per litre) Beer with a unit price of €4.55 ($5.04 USD) and above is considered premium
in Italy.Commercial imports subject to health and trade regulations40 craft breweries reported in 2005 to over 500 in 2014. Sam Adams is the only major player in American craft beer imports 403,800 gallons of beer exported to Italy in 2014
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Spainpop: 47.2 mil.
Spends 1.9b USD on beer annually. ($1.50 per liter)
Consumption of beer in general has been decreasing annually
Consumers tend to stay true to local breweries.
Craft beer image is slowly increasing
Annual Barcelona Beer Festivalhundreds of craft beer brands
gather (even US breweries)have different types of
workshops (blindfold tasting,cooking workshops, educational, etc)
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Brewpub . Pros:
Fresh Beer/QualityMore revenue streamsSell Local Beer
Cons:ExpensivePresence or Trusted partnerLimited Audience
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Microbrewery
Pros:Brew Different BeerStrong PresenceFresh Beer/Quality
Cons:We aren’t uniqueExpensivePresence or Trusted partner
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Specialty StorePros:Option of Self-serviceFresh Beer/QualityNo Brewing Process
Cons:No Love Connection Limited AudienceExpensive
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Building Half Acre in GermanyGerman Bank AccountGerman AddressPresence in GermanyLegalities
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Export OverseasProsSimple Process No-Lite BreweryConsQuality ControlWhole Sale PriceLengthy reward systemMedium Risk
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! Pivot !
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RecommendationE-Commerce site to sell beer directly to European consumers
Pros
● Subscription based● No brick and mortar● Growing market● Inexpensive
Cons
● Delayed orders (quality)● Can’t taste product before purchase● Security (credit card information)● Easy to Copy for competition● Margins?
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Reference Clients: BMW, Red Bull, Bridgestone, Braun, Bode
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Costs60 € - cost to consumer30 € - ideal profit (100%)30€ - $12(11€)(cost of wholesale beer) = 19€ (money to ship)19€ - 6€ = 13€ (how much we can spend to ship and store each case)
13€ x 1920(20 pallets of 96 cases) = 24960€3500€ to ship in container3500/1920(cases per container) = 1.82€ per case13€ - 1.82€ = 11.18€ to play with
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Fixed CostsSales €60
COGS
wholesale beer €11
ground shipping €6
transportation/storage(V/C) €1.82
Margin €41.18
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Projections
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ConclusionEcommerce
high marginslow startup investmentno brick/mortar (low risk)
Germanytrendseasy entry
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Cheers!