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:

  • 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)

  • 2012 US beer market =  Approximately $99 billion

  • 1,124 brew pubs operating as of March 2013
  • 1,139 micro breweries “”

  • Roughly 1 million home brewers & wine makers in US
  • 37K members of American Hombrewers Association


Michigan Brewing

  • 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)

  • MI craft beer industry grew by 20% in 2012
    • Added 17 breweries in 2012
      • National industry growth rate is at 12%

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 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



1451 Gratiot Sold in Q4 of 2011


$5-$6/Sq Ft

7K Sq Ft

Brood Model Street View Angle

Our space:

Assessment: $12,243.00
Last Sale Date: 02/21/2006
Last Sale Price: $75,000.00
SqFeet: 958.000

Liquor License Info,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


  • Nothing like this in the city or region
  • Home brewing is affordable
  • Craft beer movement is increasing


  • Overhead costs are expensive
  • Not exactly sure how much space needed


  • Capitalize on an untapped market
  • Create a maker movement without traditional making


  • 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: