Mountain Hall Brewing Co 10 year E-Marketing Plan

Mountain Hall Brewing Co. 10 year E-Marketing Plan ELC 310

Business Venture • Partnership Tom Stanley – Master Brewer Chris Debussey – Marketing Executive David Roy – Business Executive • Craft beer Market Micro brewery / Brewpub Restaurant

Demographic Interests • Large College base • Large tourism base • Low density of previously established breweries • Generation X and Y

Background • Chapman University Masters in Marketing • Glacier Brewing Co. , AK • Siebel Institute of Technology • University of Maine

Mission Statement • An American owned beer pioneer since 2007, our passion at the Mountain Hall Brewing Co. is to quench the thirst of the natural thrill seeking outdoor enthusiast with our quality beer at a great value. Rock climbers, mountain bikers, skiers and snowboarders all enjoy finishing their day with our specialty craft beer.

“Finish the Rush… with a Mountain Hall Brew” - not your sitting on the couch kind of beer

Competition • Craft breweries, contract breweries, micro breweries and brewpubs • Domestic beer market (Anheuser- Busch, Coors and Miller” • The big three account for 86% of the total beer accounted for in the US, including imports.

Craft brews • • Craft brew market is 7. 1% of beer market 7. 2% growth in 2004 6, 590, 000 million barrels produced in 2004 Retail sales value of $3. 5 billion • Craft beer is the fastest growing segment of the alcohol beverage industry in the U. S. • Craft Brewing Industry Statistics

Distribution Alliance • Anheuser-Busch • Domestic network of more than 500 wholesale distributors • Efficient product delivery

Marketing/Advertising Alliance • • Red Bull All events that Red Bull sponsors Extreme sporting events X-games • Our beer will fill the void. Red Bull is the official beverage before and during events. • Mountain Hall brew is the official beer for the days end relaxation.

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SWOT Opportunities Threats 1. Alliance with Anheuser-Busch would cover all distribution. 2. Automated Brewing = Less Labor 3. Advertising Alliance with Red Bull 1. Domestic brewers with full bodied beers and low prices. 2. Distilleries – both malt beverages and increase sales in mixed drinks. 3. Investors pull funding. Strengths Weaknesses 1. A probable location of success for both business and play. 2. Management team has previously worked closely together 3. Strong understanding of targeted consumers desires. 4. Clean water source 1. Newcomer to craft beer market. 2. Joining location with previously establish micro-breweries. 3. Lack of business experience 4. Lack of partnership experience

Thrill Seeking extreme sports enthusiast

Finish the Rush…with a Mountain Hall Brew

Burlington, VT • Current most - Only four breweries appealing location currently in operation • Population 204, 000 in northern VT • International Airport - Five major ski resorts • 5 colleges and within the same radius universities with the - Lake Champlain city • Four other major Universities within 100 miles

• Burlington proves to be a substantial candidate for the population of beer drinkers that we are looking for.

Quality Control • The most important factor within the craft beer market. • Consistency • Sensory Method – Sight and flavor • Instrumental Methods – Original gravity, hydrometer readings, p. H levels etc. • Following Specifications • Keeping Records

E- Marketing • Email (college students, ski resort pass holders, sponsored event participators) • Keyword searches • Search Engine optimization • Pop-up ads (only on event sponsored websites)

Cost / Budget • • • ASSUME: Total Investment $600, 000. 00 Desired ROI %30% Desired ROI $$180, 000. 00 ASSUME: Overhead $50, 000. 00/month $600, 000. 00 Total Overhead and Profit $780, 000. 00 Food Cost / Labor 20% Food 35% TOTAL 55% Food Contribution Margin 45% Beer Cost - Labor, Material, Taxes 15% Beer Contribution Margin 87. 8% ASSUME: 50% Food Sales Food Contribution Margin 45% X 50%= 22. 5% Beer Contribution Margin 87. 8%X 50%= 43. 90% Weighted Average Contribution Margin 66. 40%

Space Required SPACE REQUIRED: BREWERY SIZE 10 BBL System SQ. FT. REQUIRED 600 - 1, 000 sq. ft. PRODUCTION RANGES: SYSTEM SIZE 10 BBL System ANNUAL BBLS / YEAR 800 - 2, 500 BBLs/year BREWERY SIZE 10 BBL System BUILDING SIZE 5, 000 - 7, 500 sq. ft

COST OF GOODS SOLD Malt: 500 lbs. @ $. 30/lb Yeast: 150. 00 1. 50 Hops: 5 lbs. @ $2. 00/lb 10. 00 Filter sheets: 20 @ $1. 00/sheet 20. 00 Water: 1, 000 gallons @ $. 005/gallon 5. 00 @ $. 018/gallon 12. 42 Sewer Charges: Electrical: 193 k. Wh @ $. 062/k. Wh 12. 00 Natural Gas: 11 Therms @ $. 64/Therm 7. 00 CO 2 3. 00 Cleaning Chemicals 15. 00

Taxes: Federal $7. 00/BBL X 10 BBLS 70. 00 State $6. 50/BBL X 10 BBLS 65. 00 Labor 400. 00 TOTAL COST OF GOODS SOLD 770. 92 12. 4% CONTRIBUTION TOWARD PROFIT AND OVERHEAD (GROSS MARGIN) 5429. 08 87. 6%

KEGS Selling Price per BBL (To Distributor) $135. 00 100 % Variable Costs per Barrel Water . 50 Electricity 2. 00 Natural Gas . 70 Cleaning Chemicals 1. 50 Sewer Charges 1. 56 Hourly Labor 1. 25 Federal Tax 7. 00 State Tax 6. 51 0. 25 Malt $17. 5 0 Hops 2. 00 Yeast . 15 Filter Media . 50 Misc. Carbon Dioxide . 30 TOTAL Contribution Margin $41. 71 30. 8% 69. 2%

CASE (24) 12 oz. Bottles Selling Price (To Distributor) $16. 50 Case Costs Beer Cost per Case $3. 02 100% Labels . 60 Glue . 15 Wrap . 03 Misc. . 25 - - Total Packaging Bottles 3. 75 Carriers . 96 - Crowns . 16 Total Cost per Case Cost/Case Contribution Margin 5. 90 8. 92 54% 46%

Website - Outline • www. mtnhallbrew. com • • World of Beer – History – About Beer – Home brewing Mountain Hall Brews – About – History of – Characteristics Seasonal Brewery Tour • • • Company - History - Community Involvement - Careers - Donations to organizations - Sponsored Events Awards & News E-Store - Clothing - Glassware - Stickers

• The Mountain Hall Brewing Co. website meets the image that we are portraying, the image of a lifestyle full of fun and outdoor enjoyment. The names of our beers fall into the same path, reminding consumers of the winter and summer activities that they enjoy along with the feelings they get through these activities such as desire, on-theedge, adrenalin, exhaustion and finally, satisfaction.

Implementation • 2005 • 2006 - David Roy and Chris Debussey currently attending University with plans to graduate spring of 07’. - Partners continue to research demographic areas for brewery start up location, on both the east and west coast (including AK). • - Find necessary investors including the current Mr. Jerry Mc. Guire • Anika Altman. • 2007 • 2008 – Purchase land begin ground breaking at the start of the year with building completion by the end of the year. – Build brewery with first batch ready for market by June. • Producing 2, 500 barrels per year • 2010 • 2012 • 2013 • 2017 – Market coverage of a five state…becoming a regional specialty brewery. – 2 million dollar brewery expansion, producing 250, 000+ barrels per year = %100 growth - Development plans for second brewery on opposing side of US – 5 million dollar brewery built in Bellingham, WA.

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