Kyle Donnelly, Ariel Magana, Berenice Arista, Adrian Makurath, Anna Biernat

Half Acre Beer CompanyCraft Brewery here in Chicago (est. 2006)

Maurizio Fiori (Co - Founder)

Why we are here?American Craft Beer is number one in the worldEurope alone has increased American Craft Beer imports dramatically

up 46% from 2012-2013up 37% from 2014-2015

Why are we here?Market analysis on the beer industry trends in Europe

Sweden, Denmark, Germany, UK

Country specific reports onAlcohol and beer consumption trends and consumer behaviorsCompetitive landscape and playersPrice pointsBeer trade associationsBeer expos/events (special focus on US beers)List of potential partners to start a beer business in that country

Penetrate European Market with Half Acre Beer

StrategyDivide Europe up and research

Sweden, Denmark, Germany, U.K., Italy, FranceResearch beer profiles

● Who, What, Why?

Assessed different battle plans for entering European MarketsExport/import, build brewpub, open specialty store?

Sweden pop:9.5 mil.

Largest importer of American Craft BeerImported 43,000 barrels in 2013 (~16%)

Spends 1.3 billion usd on beer annually

Government restricts sale of alcohol to government owned stores“Systembolaget” Purchase age 20+

Brooklyn BrewerySecond largest market outside New York

Germany pop: 82 mil.92% of sales beer (ABV 2.5%-6%)Beer consumption increase by 2.8% in 2014Spent 9.4 billion on beer in 2014Eric Ottaway, the general manager of Brooklyn Brewery, “sells a 12-ounce bottle of Brooklyn Lager in upscale grocery stores for the equivalent

of $4.20 — almost three times its typical American price.”New trend in germany “taste for american beer”

younger populationamerican style breweries

GermanyFestivals

Charlotte Beerfest Charlotte Oktoberfest

Erlangen BergkirchweihBremen FreimarktKulmbach BierwocheInternational Berlin Beer

FestivalStuttgart Cannstatter

Volksfest

United Kingdom pop: 64.1 mil.Spends $393.19 annually, per person, on beerGreat Britain imports 22,320 barrels of american craft beerBrands like Sierra Nevada and Sam Adams are easy to find in the UKAt the Great British Beer Festival, the U.S. Brewers Association sponsored the

International Beer Without Borders area and featured 180 beers from 26 American craft brewers

Sales tax for beer imports are 20%Import restrictions

Personal imports of alcoholic drinks from outside the EU are subject to health and trade regulations (high probability)

The higher the alcohol by volume, the higher the import duty paid by the importer.

United KingdomGreat British Beer Festival (Aug. 11-15th, Olympia, London)

will host over 55,000 drinkers across two halls (one big, one small)each hall will have bars serving ales from hundreds of breweries Offers food and merchandise stalls

Plus side with the UK?no language barriers

Francepop. 66 mil.

Spends 4b USD on beer annually (about $3.00 per litre)Duty Free, 20% Sales tax, Excise of €43.98 ($48.70 USD)per hectoliterMany bars are owned or heavily financed by international giantsCraft beer scene is on its beginning stages and growing rapidly

“Craft beer fits perfectly with the ‘eat less, eat better’ trend that we see in Paris,” says Abergel of Brasserie Parisis.

Deck & Donohue beers were available at 20 bars and restaurants within two months of opening.

Over 500 breweries nationwideBeer consumption in France is Europe’s second-lowest, after Italy

only 16% of drinkers choose beerOverall beer sales down 1.7%, craft beer sales up 8.8% (NY Times

2013)

Italypop. 61.1 mil.

Spends 1.8b USD on beer annually (about $2.20 per litre) Beer with a unit price of €4.55 ($5.04 USD) and above is considered premium

in Italy.Commercial imports subject to health and trade regulations40 craft breweries reported in 2005 to over 500 in 2014. Sam Adams is the only major player in American craft beer imports 403,800 gallons of beer exported to Italy in 2014

Spainpop: 47.2 mil.

Spends 1.9b USD on beer annually. ($1.50 per liter)

Consumption of beer in general has been decreasing annually

Consumers tend to stay true to local breweries.

Craft beer image is slowly increasing

Annual Barcelona Beer Festivalhundreds of craft beer brands

gather (even US breweries)have different types of

workshops (blindfold tasting,cooking workshops, educational, etc)

Brewpub . Pros:

Fresh Beer/QualityMore revenue streamsSell Local Beer

Cons:ExpensivePresence or Trusted partnerLimited Audience

Microbrewery

Pros:Brew Different BeerStrong PresenceFresh Beer/Quality

Cons:We aren’t uniqueExpensivePresence or Trusted partner

Specialty StorePros:Option of Self-serviceFresh Beer/QualityNo Brewing Process

Cons:No Love Connection Limited AudienceExpensive

Building Half Acre in GermanyGerman Bank AccountGerman AddressPresence in GermanyLegalities

Export OverseasProsSimple Process No-Lite BreweryConsQuality ControlWhole Sale PriceLengthy reward systemMedium Risk

! Pivot !

RecommendationE-Commerce site to sell beer directly to European consumers

Pros

● Subscription based● No brick and mortar● Growing market● Inexpensive

Cons

● Delayed orders (quality)● Can’t taste product before purchase● Security (credit card information)● Easy to Copy for competition● Margins?

Reference Clients: BMW, Red Bull, Bridgestone, Braun, Bode

Costs60 € - cost to consumer30 € - ideal profit (100%)30€ - $12(11€)(cost of wholesale beer) = 19€ (money to ship)19€ - 6€ = 13€ (how much we can spend to ship and store each case)

13€ x 1920(20 pallets of 96 cases) = 24960€3500€ to ship in container3500/1920(cases per container) = 1.82€ per case13€ - 1.82€ = 11.18€ to play with

Fixed CostsSales €60

COGS

wholesale beer €11

ground shipping €6

transportation/storage(V/C) €1.82

Margin €41.18

Projections

ConclusionEcommerce

high marginslow startup investmentno brick/mortar (low risk)

Germanytrendseasy entry

Cheers!