Day 13 (7/1) Reflections
Again, another day of research and working on our presentation. At the end of the day we pitched our idea of Brood!
United States Brewing:
http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/facts
- Growth of craft beer increased by 15% per volume and 17% by dollar in 2012 compared to 13% and 15% in 2011
- 10.2 billion in craft brewing sales in 2012 (8.7 billion in 2011)
- As of March 2013—409 breweries opened in 2012 (310 microbreweries and 99 brewpubs) and 43 closings (18 micro 25 brew pubs)
http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/beer-sales
- 2012 US beer market = Approximately $99 billion
http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/number-of-breweries
- 1,124 brew pubs operating as of March 2013
- 1,139 micro breweries “”
http://www.homebrewersassociation.org/pages/government-affairs/talking-points
- Roughly 1 million home brewers & wine makers in US
- 37K members of American Hombrewers Association
Michigan Brewing
http://www.brewersassociation.org/pages/business-tools/craft-brewing-statistics/breweries-per-capita
- Rank 13 for Capita per Brewery 2012
- 122 total breweries (5th most in US)
- 1 brewery for every 81,013 people (based on 2010 Census) (best is Vermont which has 1 for every 24,067 & California has the most breweries at 325)
http://www.grbj.com/articles/76449-craft-beer-industry-grows-by-20-percent-tops-off-states-economy
- MI craft beer industry grew by 20% in 2012
- Added 17 breweries in 2012
- National industry growth rate is at 12%
- Added 17 breweries in 2012
7.2 Sq Mi report
- MI per capita income: $25,136
Detroit Metro
- 38 breweries in a 50 mile radius of Detroit (not including Canada)
7.2 Sq Mi Report
- Wayne Co per capita income: $22,125
- SE MI per capita income: $27,169
Detroit
- Detroit Beer Co.
- Motor City Brewing Works
- Traffic Jam & Snug
- Atwater Brewery
7.2 Sq Mi Report
- 36,550 people in Greater Downtown (5,076 per Sq Mi)
- Average per capita income, $20,216 (Detroit as a whole $15,062)
- City lost 25% of population 2000-2010 (951K to 713K)
- GDT lost 13% (42K to 36.5K)
- 18-24 population actually increased by 5% from 2000-2010
- 25-43 only lost 1%
- Greater Diversity in greater downtown (pg 32)
- More than half of all job in GDT paid more than 40k
Real Estate Dev
1451 Gratiot Sold in Q4 of 2011
$70-80K
$5-$6/Sq Ft
7K Sq Ft
Our space:
| Assessment: | $12,243.00 |
| Last Sale Date: | 02/21/2006 |
| Last Sale Price: | $75,000.00 |
| Owner: | DEEGAN, PATRICK |
| SqFeet: | 958.000 |
Liquor License Info
http://www.michigan.gov/lara/0,4601,7-154-35299_10570_16941-40899–,00.html#lic7
Brewpub, manufacturing and brewing not more than 5,000 barrels of beer per calendar year in Michigan and selling the beer produced for consumption on or off the licensed premises, $100.00 per year. A brewpub license must be held in conjunction with a class C, tavern, A hotel, or class B hotel license.
Class C selling beer, wine, mixed spirit drink and spirits for consumption on the premises only, $600.00 per year. If a Class C licensee sells beer, wine, mixed spirit drink, and spirits in more than 1 bar, a fee of $350.00 per year shall be paid for each additional bar.
SWOT Analysis
Strengths:
- Nothing like this in the city or region
- Home brewing is affordable
- Craft beer movement is increasing
Weaknesses
- Overhead costs are expensive
- Not exactly sure how much space needed
Opportunities
- Capitalize on an untapped market
- Create a maker movement without traditional making
Threats
- Beer making could be inconsistent, which would turn people off
- Must make two trips
- Beer consumers may not want to take a risk
What are some of your evaluation methods?
Predicted costs—where from?
How will you raise the fund?
Have just bullets from the Articles
Slides Order:
- the problem: for makers and for non-makers
- why? what is our mission?
- How does it apply to beer?
- What we’re going to do about it?
- What is Brood: narrative and branding
- Who does it serve: target market and sample users
- How does it serve: programming, product, partnership and market reach
- How does it sustain: overhead, operating costs, revenue streams and MVP/profit margins
- How does it compete: what is the market like? Unique Selling point. SWOT analysis
- Process
- Where do we need to be before we reach the ideal?
- Where do we need to be to reach that point?
- Where do we start?
- Overview and closing remarks
At the end, we presented:
