Brendan Bell & Ryan Patev

Prof. Curran
Bus. Fin. Entrepreneurs
3/26/18

Beantown Distillery
A. Executive Summary
Description of Product

Beantown Distillery Co., located in Charlestown, Ma is a producer of various fine whiskeys. We

produce 3 types of Whiskey, Beantown Original, Beantown Honey and Beantown Top Shelf, all produced

to give a different taste and experience for all. Beantown Original Whiskey is created with the finest

blend of ingredients, mixed together to bring a new generation to the smooth and subtle taste of

Whiskey. Beantown Irish whiskey is created with subtle hints of secret ingredients sourced and delivered

from Ireland, blended in with our Beantown Original to give this whiskey a more smooth, subtle and

refreshing taste. Beantown Top Shelf is created with a blend of our Beantown Original ingredients added

in with a select few of the finest secret ingredients unknown to any company in the industry, that goes

under a strict aging process. We offer each flavor in 3 sizes available in 500 ML, 750 ML and 1 Liter

Bottles. Our Original Whiskey ranges from $20 for 500 ML to $35 for 1 Liter, Irish Whiskey ranges from

$25 for 500 ML to $40 for 1 Liter. Our higher end Top Shelf whiskey ranges from $55 for 500 ML to $75

for 1 Liter.

Description of your operation

Beantown Distillery Co. is a General Partnership, founded by Brendan Bell and Ryan Patev in

2015. We have one plant of operation which is located in Charlestown, Ma which is the heart of the Irish

American community in Boston, MA. We have 1 storage facility inside the plant that holds all our aging

whiskey. We also have 3 brewing tanks one for each whiskey that we produce so not to contaminate or

mix the whiskeys together. Our plant also has a full production line that begins with the creation of the
whiskey, bottling, stamping and packaging of the whiskey so they are ready to be shipped to retail

stores.

Overview of the industry

The whiskey industry is currently valued at over just over $3bn. With an average annual growth

rate of 6.2% from 2011-2016 and looks to be the same over the next few years. The industry has four

large distilleries with a large market share, Jim Beans, Even Williams, Jack Daniel’s and Wild Turkey. Over

the past couple of years, consumers have moved away from these brands, and have gravitated towards

smaller micro distilleries. As a micro distillery, we plan to take advantage of this growing trend and

capitalize on the current market.

Your Labor needs

Under our current labor structure, we have Brendan and Ryan who own the business and make

all day to day decisions for the company. Brendan and Ryan along with filling the role of owners have

other responsibilities in the company. Brendan works with the financial officer to work on expansion

opportunities and pricing, as well as being in charge of the wholesaling to retailers. Ryan works with the

marketing officer to come up with new innovative and up to date marketing tactics and ideas to help the

brand grow both socially and financially, as well as being in charge of the distribution. We also have a

Marketing Director, Financial Officer, and 2 Brew Masters. We have found this group of employees to

work exceptionally well for our current business structure and size. With our company growing at a

steady pace we plan to add employees when we see fit, and try not to over employ so that we can

create a great work experience for everyone.

Marketing Plan
 When it comes to marketing we plan on using three forms of marketing. Social media, word of

mouth, and using alcohol tasting events as a way to market our product. Social media will be one of our

main forms of marketing due to its ever-growing population and amount of current users. Word of

mouth is a form of free marketing, we hope people will tell their friends about their positive experience

from drinking our whiskey. The final way we plan on marketing our product would be alcohol tasting

events around Boston. Having people sample our whiskey and getting their critiques is extremely

important. It also allows us to create a bond with future customers. Later on, down the road, we plan to

invest more into marketing, such as running ads or using billboards.

Projected Sales & Profits (Loss)

Sales (in units)

Size Original Irish Top Shelf
500 ML 500 600 650
750 ML 600 760 755
1 Liter 720 890 1200
Total 1820 2250 2605 6675

Sales (in dollars)

Size Original Irish Top Shelf
500 ML $ 10,000.00 $ 15,000.00 $ 30,800.00
750 ML $ 16,200.00 $ 24,320.00 $ 42,575.00
1 Liter $ 25,200.00 $ 35,600.00 $ 75,000.00
Total $ 51,400.00 $ 74,920.00 $ 148,375.00 $ 274,695.00

Cost of Goods Sold (in dollars)

Size Original Irish Top Shelf
500 ML $ 2,500.00 $ 4,200.00 $ 7,800.00
750 ML $ 3,900.00 $ 7,030.00 $ 11,325.00
1 Liter $ 5,760.00 $ 9,790.00 $ 21,600.00
Total $ 12,160.00 $ 21,020.00 $ 40,725.00 $ 73,905.00
Goals

Short term goals include: raising brand awareness, increase sales, increasing production capacity

to accompany a raise in sales. Long Term goals include: adding more types of whiskey, purchasing an

additional production plant, hiring more employees, expand our brand abroad.

Financial Needs

Beantown Distillery Co. is seeking $100,000 for 10% equity in the company. We are looking to

expand the Distillery and either move into a larger facility or open up a second location for production

and storage.

B. Pro-forma Financial Statements

BeanTown Distillery
Income Statement (Year ending Dec. 2017)
Revenues $ 274,695.00
Cost of Goods Sold $ 73,905.00
Gross Profit $ 200,790.00
Expenses
Salaries $ 90,000
Supplies $ 14,500
Rent $ 42,000
Insurance $ 7,000
Advertising $ 4,100
EBIT $ 43,190.00
Interest 1000
EBT $ 42,190.00
Taxes $ 8,859.90
Net Income $ 33,330.10

Salaries are to be for our employees. Our employees are part time/full time depending on the current

market demand for our products. Supplies covers anything from the glass bottles we put the whiskey in

to the boxes we ship them out in. We are paying rent of $3,500 a year. We have insurance since we are

dealing with flammable liquids, we want to keep ourselves covered. We will be using google ads at $300
for 12 months as well as a billboard that will cost $500. Taxes being calculated using the new structured

tax bracket percentage of 21%.

BeanTown Distillery
Income Statement (Year ending Dec. 2017)
Current Assets
Cash $ 2,100
Accts Receivables $ 35,000
Inventory $ 25,650
Supplies $ 3,800
Prepaid Insurance $ 1,750
Total Current Assets $ 68,300

PP&E
Building Improvements $ 10,000
Equipment $ 22,500
Less: Accum Depre $ 2,700
PP&E -net $ 35,200

Total Assets $ 103,500

Current Liabilities
Accounts Payable
Wages payable
Warranty Liability
Other
Total Current Liabilities
$ 25,670
$ 10,000
$ 2,000
$ 1,000
$ 38,670

Long-Term Debt $ 64,830

Total Liabilities $ 103,500

C. Key Project Calculations

BeanTown Distillery
Financial Ratios
Gross Profit Margin 73%
Net Profit Margin 12%
Breakeven $ 215,608.01

D. Bargaining Strategy
 We are seeking $100,000 so that we can improve on our current warehouse facility as well as

look into another location for product and bottling. With our current location we are able to handle

a large production capacity but we are looking to expand our company which would entail us having

to up our production, and would bring in the need for another facility. We are looking to keep the

current dollar amount of $100,000 because of our need to expand and improve. Although we are

not looking to bargain with the dollar amount we are open to bargaining for the equity amount.

Giving up equity in our business is not something that we are not to worried about. We do have

a limit that we would want to give up and that would be 20%. This would be split so that both

partners would be giving up 10% of their equity to one of the sharks. In terms of taking out a loan,

we would prefer not to do this strictly for the added risk factor involved with it. If per say the

business was to go under in the next year, the loan would still have to be repaid and that would

have to come from the pockets of the partners and not the business.

We would be open to the offer of royalties or perpetuities. But if this were to be an offer we

would not bargain on the equity percentage. That would stay as is at 10% and we would be willing

to give royalties of up to $1.