oregon trail brewpub tours
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Oregon Trail Brewpub ToursTRANSCRIPT
Oregon Trail Brewpub ToursMarketing Plan
Who are we?Oregon Trail Brewpub Tours is a tour company with a mission to
provide brewpub tours in an ecologically friendly manner and
to help promote craft brewing and local sustainable economies.
Market Demands and Opportunities
Oregon Trail is the only exclusive brewpub tour company in the Oregon Region and most of the west.Total Craft Beer Sales in 2006 $5 billionThe Craft brewing industry has grown 12% over other brewing segments in the US in 2007Oregon State earns over $2.7 billion annually from the tourism industryProjected .5% of overall market $18,500,000 annuallyOpportunities for future expansion to other regions
Management Team
Aaron Hill (MBA)
Marketing Director
Tour Guide
Founder and CEO
To Be Determined:
CompetitorsThe major competitors is the Oregon state wine industry and winery tours
Additional competitors are other available activities of the region (Mountains, Oceans, Professional Sports, etc.)
Business Model & Target Market
Limited Liability Corporation (LLC)
Target Market isLocal foodies and Craft beer aficionadosTourists (local & regional)Portland area event planners
Partnerships and AssociationsPartnering with local Portland area and Oregon State Craft
BreweriesMembership in the Oregon Brewers GuildMembership in S.N.O.B. (Support Native Oregon Beer)Membership in the Brewers AssociationPartnering with the North American Organic Brewers Festival and other Community Membership in Travel Oregon
5 Year Financial OutlookOregon Trail Brewpub Tours
Income Statement ($)
2011 2012 2013 2014 2015 Total Revenue $162,500 $286,000 $325,500
$353,000 $403,500 Total Operating Expenses $184,797 $239,711 $254,509
$267,908 $285,060% of Revenue 114% 84% 78% 76% 71%Income Before Int. & Taxes ($22,297) $46,289 $70,991 $85,092
$118,440% of Revenue 14% 16% 22% 24% 29% Net Income ($27,953) $20,307 $32,111 $39,974 $59,185% of Revenue -17% 7% 10% 11% 15%
$403,500 of Revenue; $ 285,060 of Expenses; $59,185 Net Income; 15% of RevenueBreak-even point at May 2012Staff Headcount 3
Forecasted Revenue & Income
2011 2012 2013 2014 2015-$50,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
Revenue Net IncomeCapital Injection
January ‘11
Break Even
May ‘12
Capitalization
Capitalization is need for the following:
$60,000 of the investors “fermented”
capital
Capital Required to maintain positive cash
flow in Year 1 ($47,600)
Angel Investors who have an appreciation
for locally made Craft Beer
Securities StructuringPreferred Stock Paid in Kind
Anti-dilution (priced based – weighted average anti-dilution)
Liquidation – simple preference (original value + dividends)
Dividends – cumulative annual dividends at 7% of par when declared by board
Redemption (investor right with: 2/3 vote of preferred holders, 1/3 @ year 5, 1/3 @ year 6, 1/3 @ year 7; price $.78; 2X original purchase price + dividends
Control (voting – can elect one representative to board
Protective Provision – 2/3 majority of preferred necessary for certain actions
Available Options
Preferred Stock Paid in Kind
American-style call optionRight to purchase more stock at original purchase price for 2 years (capped at 2X initial price and limited to 49% total)
The Offer for InvestorsPre-Money Valuation $77,565New Money Investment $60,000Post Money Valuation $137,565Investors % Ownership 44%Investors Total Shares 77,355Shares Outstanding 100,000Price Per Share $.78Total Diluted Shares 177,355
Summary of the Deal
$60,000 - preferred equity investment
Angel investors with an interest in the local
craft brewing industry
Price per share = $ .78
Shares investor would own = 77,355
44% Investor ownership
Cumulative annual dividends at 7% of par
Weighted average anti-dilution
Oregon Trail Brewpub Tours
Thank you for your time