


1 | 2015 Revenue of first tap house: $1,916,091. |
2 | Investment: New tap room / brewery right next to Texas State Univ. (30,000 students). |
3 | Capacity of new facility: 20,000 barrels. |
4 | Powered 100% by wind energy. |
78702 is brewed in the style of a traditional Kolsch. This German style brew is blonde in color, bright and clear with a lasting white foam head. It has a refreshing medium hop bitterness upfront and clean and crisp finish.
Our 2012 World Beer Cup Gold Medal winning Altbier is brewed with old world techniques, quality German malts and noble hop varieties. It undergoes a multiple temperature mashing program to make a classic upfront maltiness with a clean, crisp finish.
The Greenhouse is a breeding ground. Each month we'll release around 300 cases per batch and each month we'll change the hop varieties that we use for dry-hopping in order to give you a different aroma and flavor experience with every new batch.
Our Baltic Porter starts with a base of Pilsner and Munich malts and we layer in chocolate wheat and de-bittered black malt to provide flavors of coffee, dark chocolate, raisins, and just a hint of roast. A neutral yeast profile lets the malts take center stage.
American style IPA showcasing a fairly new hop variety called Mosaic. The beer begins with a base of German Pale Ale and we dry-hop with Mosaic, Simcoe, and Nugget to deliver a clean and complex finish with notes of pine resin, grapefruit pith, and blueberries.
Pale Dog is full of malt character with a dry, crisp, and hoppy finish. We start with a base of the highest quality 2 Row malted barley and blend with a small amount of Vienna and Caramel malts to add distinct character and a mouthful of hoppiness.
It’s similar to old world German lagers but dry-hopped to add an extra layer of complexity. Zoe is based on pale and vienna malts, with a beautiful white layer of foam resting on top, delivering floral and citrus dry-hop aromatics with every sip.
Hops and Grain has financial statements ending December 31 2018. Our cash in hand is $65,000, as of March 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $50,003/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Hops & Grain is a local Texas brewery. We brew and package all of our beers on-site and sell them throughout Austin and the surrounding areas. After 7 years of expansion in our current facility, we have been operating at max capacity and are now looking to double our capacity with a new brewery. The investment was in a new LLC to develop the new tap room and brewery in San Marcos, TX.
Since Day 1 our goal has been to craft high quality beers that tell a compelling story and go beyond our customers' expectations. We operate a full time on-site laboratory and craft some of the most exciting and innovative beers in Texas in pursuit of this goal - efforts we plan to double in San Marcos. And our customers love us: we've had double digit year over year growth in our first location since 2011.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Milestones
Hops and Grain Production, LLC was incorporated in the State of Texas in May 2016.
Since then, we have:
Historical Results of Operations
Our company was organized in May 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $1,000,000 in debt.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Hops and Grain Production, LLC cash in hand is $65,000, as of March 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $35,000/month, for an average burn rate of $35,000 per month. Our intent is to be profitable in 3 months.
We have not begun operations at the new brewery in San Marcos so only expenses have been shown to date
We are opening for business on March 18th, 2019 and will begin to see revenue's of $250K/month increasing to $300K/month
1 | Lack of market traction |
2 | Need to expand to further markets due to lack of market traction which would bring about additional shipping costs and potential lack of traction in new markets |
3 | Product spoilage requirement destroying the product. (insurance policy would cover raw material cost but time would be lost) |
4 | Fire or other weather extreme that could destroy the property and equipment (again, insurance would cover costs but lost time could result in product never gaining traction) |
5 | Inability to retain management staff, cost of hiring and training new employees |
6 | Construction cost beyond expectation/budget requiring additional fundraising or debt |
7 | Terminated employees stealing trade secrets (all staff is required to sign non-disclosure and non-compete but cost of attorney fees could be substantial) |
8 | Unexpected permitting time. If permits are held up then additional costs could be incurred |
9 | Death or terminal illness of manager |
10 | Construction theft (i.e. copper or other building materials) |
11 | Customer complaint or possibly lawsuit due to accidental injury |
12 | Customers leaving intoxicated and getting pulled over, potentially causing additional oversight by regulatory agencies. |
13 | The CEO currently has a full-time job and is not able to devote 100% of his time to running the business which could result in multiple issues. |
Director | Occupation | Joined |
---|---|---|
Josh Hare | President @ Hops and Grain | 2016 |
Officer | Title | Joined |
---|---|---|
Josh Hare | President, Treasurer, Secretary | 2016 |
Holder | Securities Held | Voting Power |
---|---|---|
Hops and Grain LLC | Units | 100.0% |
Date | Amount | Security |
---|---|---|
08/2016 | $1,000,000 | Revenue Share |
08/2016 | $1,000,000 | Loan |
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
Wefunder Investors | 08/12/2016 | $1,000,000 | % | Yes |
$50,000 | With the minimum target, we have budgeted $40,000 for construction and finish out of the space, and $10,000 for marketing expenses during the first 2 years. |
$100,000 | With 100,000, we would add additional fermentation capacity and a few other pieces of equipment. |
$250,000 | Finish the entire build out of the Brew House to accommodate the new equipment. |
$500,000 | Purchase fermentation tanks and all other equiptment required for fermenting and packaging the beer. |
$750,000 | build out our lab for testing and quality assurance/control of beer, and purchase of a centrifuge to enhance shelf life and stability of the beer. |
$1,000,000 | Final interior design of the tasting room. Cold storage for the tap room kegs, patio construction etc. |
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Units | 500,000 | 0 | No |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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