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Better World Spirits Benefit Corporation Business Plan The information contained in this document is proprietary and confidential. This document is the property of Better World Spirits Benefit Corporation and may not be copied or distributed without prior written permission.

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Page 1: Better World Spirits Benefit Corporation...Business Plan The information contained in this document is proprietary and confidential. This doc ument is the ... and marketing experience

Better World Spirits Benefit Corporation

Business Plan

The information contained in this document is proprietary and confidential. This document is the property of Better World Spirits Benefit Corporation and may not be copied or distributed without prior written permission.

Page 2: Better World Spirits Benefit Corporation...Business Plan The information contained in this document is proprietary and confidential. This doc ument is the ... and marketing experience

Executive Summary

Better World Spirits (BWS) is a York PA-based craft distillery that will produce premium quality spirits from ingredients grown in Pennsylvania, and offer tours and onsite cocktails in the uniquely designed tasting room. These onsite cocktails will be created through the use of unique herbal elixirs and seasonal infusions. BWS will also produce draft cocktails from house made spirits and local ingredients.

Better World Spirits’ priority is to produce products from Pennsylvania ingredients. The quickly growing popularity of farmer’s markets and local foods suggests that many consumers want high quality products from sources they trust. Better World Spirits creates unique products that highlight varying flavor notes found in Pennsylvania. The concept aspires to highlight distinctive flavors, as well as appeal to customers looking for intriguing spirits and cocktail experiences.

Customers can buy bottles of spirits and cocktails from the tasting room, through Pennsylvania State liquor stores, or have it mixed into specialty cocktails or purchase a draft cocktail at partner restaurants. Buying on-site has the added benefit of the tasting experience, a destination event where customers can bring friends or relatives visiting from out of town, or as part of a night out. The tasting room provides a window into the distilling process, closed-loop manufacturing, Pennsylvania agriculture, and the urban arts and social scene of downtown York. BWS plans to introduce draft and canned cocktails for offsite sales and for direct distribution to retail establishments.

BWS formed as a benefit corporation, and will be operate as a social enterprise and pledge to support and work with qualified local organizations to create a better world. A portion of after tax profits will be donated to Pennsylvania Association of Sustainable Agriculture.

Growth of a business at BWS is viewed in a more holistic perspective than simple financial growth. The growth of BWS as a business will incorporate the emotional well-being, spiritual aspects, mental health and not just bottom line financial growth. In order for BWS to survive and thrive on a long term basis much more than simple financial growth is required. At BWS, we are not striving to be the biggest; we are endeavoring to develop to a sustainable size that allows for the continued long term growth focused on local sourcing and local distribution.

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Company Overview

Better World Spirits Inc. (BWS) is a boutique distillery that will manufacture vodka, gin, and other spirits from locally grown fruit or grain. BWS was incorporated as a benefit corporation in the state of PA in 2015 and will be located in downtown York PA at 43-45 West Market Street in a former clothing store.

The clothing store closed in 2004 and the building deteriorated significantly. The Redevelopment Authority of the City of York sold the building to Meshuganah LLC for $2000 with the understanding that Meshuganah would redevelop the three-story building and demolish a two-story brick addition at the rear of the building. Elliot Weinstein, president of Weinstein Realty Advisors and Meshuganah LLC will reconfigure the parking and add spaces. Weinstein is searching for a restaurant tenant to occupy the building, which is currently vacant and desires the parking spaces during the day for use by employees and prefers a tenant that is open in the evening and on weekends that can utilize the parking.

The exterior of the building is currently being renovated and will be completed shortly. All interior construction including a sprinkler system, HVAC, electrical, plumbing, and interior finishing will be the responsibility of the tenant. Weinstein has expressed an interest in selling the building and considering the extensive renovations required; BWS is amenable to entering into a purchase agreement with Meshuganah LLC to acquire the building.

BWS incorporated as a benefit corporation, which is a for profit corporate entity which endeavors to make a positive impact on society and the earth in addition to making a profit. B Corps, as they are commonly referred to, differ from traditional corporations in transparency, accountability, and purpose but not in taxation. We understand that the decisions and choices we make today affect the earth and future generations.

As a benefit corporation, BWS has chosen to partner with Pennsylvania Association of Sustainable Agriculture (PASA) in an educational program focused on sustainable farming techniques. The goal is to educate one farmer in sustainable agricultural techniques for each case sold.

Refer to The Entrepreneur's Guide: Growing and Starting a Business in PA for further explanation of a benefit corporation.

Product Description

Better World Spirits (BWS) will create premium spirits from locally sourced fruits and grains. Initial spirit offering will be vodka and gin with whiskey, brandy and other spirits planned as future offerings. The products will be available by the bottle at a retail outlet located in downtown York PA. This outlet will also serve as a tasting room at which specialty cocktails will be sold.

These specialty cocktails will be handcrafted from the premium spirits and locally sourced herbs and botanicals. For instance, vodka will be infused with strawberry and mint to create a unique elixir that will be used to make exclusive and extremely distinctive cocktails. BWS will offer tours and cocktail recipes. BWS will partner with a local artisanal soda maker who creates distinctive handmade sodas. Flavors will be created to accentuate and compliment the flavor of the spirits to create amazing

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seasonal cocktails. These creations will be packaged in five gallon kegs for distribution to local establishments. In addition to kegs, the products will be canned by utilizing a mobile canning operation.

Better World Spirits’ traditional, old-fashioned method of distillation ensures the quality and authenticity of the final product. The initial product offering is small batch vodka made from apples not suitable for fresh pack (grocery) sales, but undervalued when being sold as cull. Unbeknownst to many people, apples can be fermented and distilled into spirits similarly to barley, wheat, rye, or potatoes. Apples are genetically diverse, readily available, and emblematic of Pennsylvania agriculture.

The product offering will include a unique line of gin. According to John Stone in Making Gin and Vodka

“Gin is really nothing more than a special case of a flavoured vodka, the flavouring agent in this case being mainly juniper berries but also small amounts of other botanicals such as orris root, cardamom, coriander. Different distillers use different recipes, which accounts for their slightly different tastes.”

Each month a different gin will be created utilizing seasonal ingredients and highlighting flavor profiles. For instance, during the summer; cucumber or citrus botanicals will be used as ingredients to transform the flavor and in the winter; cinnamon, and cardamom, etc. will be used to creative a festive unique gin for the season. Subsequent spirits including whiskey and brandy will be distilled utilizing local ingredients.

Through tasting room tours and direct sales BWS encourages customers to learn about spirits’ production. BWS connects consumers with the farmers and fields of Pennsylvania, showcasing the origin of the raw materials used in distillation. BWS raises awareness around environmental and social issues pertaining to the loss of farmland and the benefits of local food production. The distillery and tasting room are appropriately located in downtown York for ease of access for both suppliers and customers. All spirits are, distilled, bottled, and packaged on-site at the York distillery.

The tasting room will be open seven days a week from 4pm till 11pm except Saturday when it will open from 12 noon till 11pm. State law requires limited distilleries to close at 11 pm. We will utilize a similar model as other local establishments and encourage patrons to order food from other local restaurants. BWS will offer exquisite desserts that are procured from a local supplier. Currently there is no place in downtown York where you can just get dessert. Desserts are a perfect accompaniment to the unique cocktail offerings. We may also serve charcuterie which will be sourced from local farms. BWS plans to make in house bitters and tonics to accentuate the tasting experience.

BWS is committed to sourcing local ingredients in an effort to benefit the local region and add value to local agriculture. Vodka will be produced from apples sourced from local producers such as Brown’s Orchards in York County and various fruit orchards in Adams County.

Grains such as wheat, rye, and barley will be sourced from PA farmers with the emphasis on local production. Local farmers will be contracted to grow specialty grains such as sorghum, quinoa, and amaranth for whiskey production. BWS has access to a 183 acre family farm outside of East Berlin

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which has been in one of the cofounder’s family since 1930 which will allow for specialized growth of crops to support production.

Competition

BWS will be competing against major national players in the spirits industry as well as several local established small distilleries. BWS will also compete with local microbreweries and other local establishments to capture a segment of the alcohol industry.

Competitor/Substitute Strength Weakness Sustainability Story

BWS Advantage

“Craft” Vodka National Brands (Tito’s, Hanger 1, Koenig, Peak Spirits)

National distribution, Production and marketing experience

Not Local, Produced from grain

Minimal Local, Benefit Corp, Vodka from local apple sources

“Craft” Vodka Local Brands (Battlefield, Boyd & Blair, Penn 1681)

Already in market, gaining popularity and press

Market niche is unclear,

Minimal Production from apples, farmer focus, onsite cocktails

Mass Market Vodka (Absolut, Stoli, Ketel One, Belvedere)

Established market, mass appeal, availability, price

Environmental cost of import, no story or personal connection

Virtually non-existent

Local, compelling story, unique, distillery tastings and tours

Craft/Micro Beer & Wine

Established market, mass appeal, availability, price

Over saturated Minimal Benefit corp, tastings and tours, new market-cocktail drinking trend

Whiskey, bourbon, rum, tequila, other spirits

Gaining in popularity, established market, mass appeal, availability

Less easily mixed in cocktails, aging process

Minimal Innovative infusions, quick production cycle, ease of use

Currently there are three local distilleries in south central PA.

1. Old Republic Distillery is located in Seven Valleys and has a separate retail location outside of York PA. Old Republic’s product line is mainly flavored moonshine products and vodka. It is a very small distillery and currently does not offer onsite cocktails.

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2. Thistle & Finch is located in Lancaster PA and originally produced an unaged rye whiskey. They have recently begun production of a vodka and gin. They do serve cocktails and are expanding.

3. Battlefield Brew Works and Spirits of Gettysburg Distilling is a very small establishment located in a former Civil War hospital outside of Gettysburg. They sell samples but do not offer cocktails.

Current

Competitor

Strengths Weaknesses Sustainability Story

BWS Advantage

Old Republic First to local market

No onsite cocktail sales

None Offer onsite cocktails, location is better for clientele

Thistle & Finch

Already established

Limited product line, unaged rye whiskey initial product

None Location is superior, more diverse offerings

Gettysburg Distilling

Established, Tourism

No onsite cocktails, None Offer onsite cocktails, location is more conducive to walk in traffic

Industry Analysis

The alcoholic beverage industry is broken down into three distinct categories 1) Beer and malt beverages 2) Wine and wine based products and 3) Distilled spirits. The distilled spirits category consists of vodka, gin, rum, whiskey, scotch, tequila, brandy, and other products. The distilled spirits category of the alcohol industry is very strong and growing. Revenue more than doubled from 1999-2013. During the same time period the overall market share consumption of spirits based on gross revenues has risen from 28.2% to 34.7 % while the market share of beer over the same period has fallen from 56% to 48.3% and market share for wine has risen from 15.8% to 17.0%. Even with the growth of craft brewed beers in the past 15 years; the overall gross revenue market share of beer in the US has declined while spirits and wine continue to grow. The following table illustrates the growth.

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The rise of craft distilleries is following the exponential rise of the craft brewing industry. In 2005 there were only 52 distilleries in the US and today there are over 400. According to Michael Kinstlick in The US Craft Distilling Market: 2011 and Beyond by the end of the decade there will likely be over 1000 distilleries. Bill Owens, President of American Distilling Institute also predicts “that the market will be able to support 1,000 independent booze-makers within a few years.”

In 2012 Pennsylvania ranked 7th nationally in sales of spirits and grew at a rate of 4.2% which is higher than the national growth rate of 3.6%.

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BWS will compete in the high end and super premium markets based on price. As shown on the above charts the high end and super premium capture 27.1% of the market with a total volume of 55.8 million cases. The vast majority of the revenue growth in 2013 was in the high end and super premium categories. These two categories account for 86.9% of the growth in spirit sale revenues.

BWS initial spirit offering will be vodka as it comprises 34.1 % of the spirits market in the US and had a 5.6% growth last year. It is a versatile product that can be used to make unique cocktails and old favorites. Vodka & cranberry, bloody mary, screwdriver, vodka & tonic, etc. can be made.

Vodka has a steady growth rate as shown on the following graph.

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In PA vodka is by far the largest spirit according to dollar sales as shown below. In retail year 2013-2014 over 256 million dollars of vodka was sold.

If we examine the four counties around BWS we find that Lancaster county is ranked 8th, York county is ranked 10th, Dauphin county is ranked 13th and Cumberland county is ranked 14th in the state based on dollar sales. These four counties accounted for over $201 million in sales in Retail Year 2013-2014. Using these figures, vodka sales in these four counties accounted for $68.5 million.

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In the past 20 years, the US alcohol market has shifted from mass produced jug wines and domestic beers to one that meets the changing palate of the American consumer, with an emphasis on boutique wines and micro-brewed beers. Craft distilleries are the newest emerging trend in that genre. Currently, California, Washington, Colorado, and Oregon are on the leading edge of this movement, and Pennsylvania, with its newly passed craft distilling legislation, will be next.

Washington passed legislation in 2008 which simplified the license application process. In 2008 there was not a single craft distillery in the state of Washington, today there are 110 operating craft distilleries and more are opening every month, despite the fact that until recently they could not sell any product on site. Since 2013 craft distilleries are allowed to sell only samples on premise but not cocktails. Most states, including California, do not allow on premise sale of alcohol and still the number of craft distilleries continues to climb.

Pennsylvania ranked 7th nationally in microbreweries according to the Brewers Association with 136 in operation at the end of 2014. At the end of 2014 there were 25 operating limited distilleries in PA and several others who have applied for licensing through the PLCB. There is considerable room for growth in PA considering the fact that on premise sales of cocktails are allowed which is a significant advantage over states like Washington, Oregon, and California. Nationwide small, owner-operated distilleries 2012 case sales stood at about 800,000. The 2014 estimates stand at about 1.9 million cases, or about 1 percent of the total spirits market in the country.

Strategy and Implementation

Agriculture is a major industry in PA and the southeastern and southcentral part of the state are a major part of farming and production. PA ranks 4th nationally in apple production and the hub of that are Adams and York counties. PA also ranks 4th in grape production and 7th in winemaking.

The city of York is undergoing a renaissance with a focus on creating a vibrant downtown arts and entertainment district. This district is anchored by the Strand Capitol Theater and Central Market

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York BWS is poised to collaborate and aid in this revival. Located directly behind the Central Market and one block from the Strand Capitol BWS can source ingredients from the local farmers market and become a regular stop for theater goers before or after a show.

The 12 million dollar Market Street Revitalization Project is directly across from BWS and will strengthen the downtown corridor. The Holy Hound Taproom has been open several years and is in the process of an expansion project. Holy Hound is focused on quality beer and a variety of single malt scotch and small batch bourbons. BWS will be conveniently located between Cherry Lane and Beaver St on the following map of downtown York.

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Customer Analysis

Better World Spirits’ viability is based on:

1) The growing trend of fine spirits-oriented cocktail drinking (which follows on the heels of fine wines and micro-brews), and 2) The increasing consumer demand for local products. 3) The growth of purchasing based on a company’s overall purpose and not just on profit motives.

According to Hudson Riehle, senior vice president of the National Restaurant Association’s research and knowledge group:

Today’s consumers are more interested than ever in what they eat and where their food comes from, and that is reflected in our menu trends research True trends – as opposed to temporary fads – show the evolution of the wider shifts of our modern society over time, and focus on: •the provenance of various food and beverage items •unique aspects of how they are prepared and presented •the dietary profiles of those meals

The demand for local food has exploded in the last few years. Consumers are beginning to look more closely at the quality, transparency, and integrity of the companies from whom they are purchasing. Local is the hottest trend in the food industry, with many consumers preferring local over organic products. Current trends toward artisanal products, local produce, and gourmet experiences have encouraged the development of local wineries and breweries. Better World Spirits market niche lies squarely amongst the trends for newly minted (or evolving) cocktail drinkers who value premium local products and handcrafted experiences. Consumers have an interest in what their spirits are made of, how they are made, and the environmental impact of their production. They dare to be different and look for unique products that reflect their values.

The Better World Spirits’ target market is a collection of growing and overlapping niche groups: slow foodies, locavores, hipsters, cocktail connoisseurs, carbonorexics, local conservationists, farmers, chefs, mixologists, and the restaurants and bars that employ and serve them. They are “fringe” groups individually, but collectively they are a large, upwardly mobile group. They are not the trendy nightclub crowd the big spirit brands target. They are the happy hour, fine cocktail, fine dining, dinner party people. These trend-setting early adopters help build the BWS brand; their loyalty increases the number of liquor stores and bars who carry BWS products. BWS will also develop products and sales channels through relationships with chefs, bartenders and mixologists who focus on local, sustainable, and innovative products.

BWS will cater primarily local clientele and serve as a cocktail lounge and leisure gathering place. Outdoor seating will be available behind the building overlooking Central Market House. Holy Hound Taproom currently opens at 4pm every day except Saturday when it opens at noon. BWS will use a similar schedule and cater to the happy hour crowd and will attract the theater crowd before or after a show. York has over 5500 businesses within 3 mile of BWS and over 75,000 employees who work at these companies. By catering to local clientele BWS will create a symbiotic relationship with the growth of the local economy.

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BWS will be a tourist destination and work in conjunction with The York County Convention & Visitors Bureau to incorporate into existing activities such as the factory tour which includes Harley Davidson as a stop. BWS will also incorporate into the Susquehanna Ale Trail which highlights local breweries and distilleries.

From a November 19, 2013 article of Entrepreneur, Bill Owens had these comments:

But craft distilling isn't just about expanding market share behind the bar. Many distilleries are opening tasting rooms and gift shops, and their impact on local economies can be huge. "The future for these places is in becoming tourist destinations," says Owens, who knows of craft distillers bringing in $30,000 per month from their gift shops alone. "People don't realize how much life they bring to their communities with breweries and distilleries.

Marketing Plan

BWS has contracted Grit Design and Marketing for logo design, website design and initial PR campaign preceding the grand opening.

At BWS we create inspired local spirits to instill fun and relaxation into everyday life and support local sustainable agriculture programs to make our world a better place. We serve people who drink spirits who share BWS hope for a better world, and feel good about using their purchasing power to make a change to create a better world for future generations. We help them overcome this by offering a sustainable choice so they can feel better. We differentiate our brand by focusing on the social benefit of the company.

BWS can distribute products in four distinct ways.

1. Cocktails will be sold at the onsite tasting room and lounge. 2. Bottle sales from the onsite tasting room and lounge. 3. Direct delivery to restaurants, bars, and eating establishments. Currently all licensed

establishments are required to travel to a state run liquor store to purchase all wine and spirits. In April 2014, limited distilleries such as BWS are allowed to deliver directly to licensed establishments and individuals bypassing the state run liquor stores. The addition of draft and canned cocktails for delivery to restaurants is unique in PA and a market that is not currently being addressed.

4. Wholesale sales to the PLCB for sale in the state run liquor store system. The Pennsylvania Liquor Board (PLCB) very recently developed a program aimed at streamlining the process for limited distilleries to gain shelf space. The program allows for limited distilleries to submit up to 10 products to be placed on the shelves of 10 PLCB retail wine and spirits stores geographically near the distillery. In order to maintain the shelf space, one case of each product must be sold per store each month. BWS will submit products to the PLCB for approval and gain shelf space. The PLCB is the largest purchaser of spirits in the world and this program will allow for easier access to the market.

The addition of draft cocktails enhances market penetration as these products can be custom created for individual establishments. In addition to restaurants, BWS will work with local event planners and wedding planners and create custom draft cocktails to suit any taste. The addition of canned

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cocktails that can be sold directly to retail establishments and hotels and resorts is a untapped market.

Brand Positioning

BWS has endeavored to create a brand that is customer-centric and puts power and purpose in the hands of the customer. We are trying to create a community where the customer feels like they are part of something with a higher purpose instead of the traditional “me” centered brand.

BWS differentiates from the competition by contributing to a cause that supports local sustainable agriculture education and creating a better world for our children, grandchildren and future generations. The local competition and for that matter the mega national brands do not contribute in an open and transparent manner. They may have corporate and social responsibility departments but it is often unclear what they do and how it impacts people.

Drinking vodka is more about socializing and having fun and less about celebration, tradition, or ritual. Those desires can be fulfilled by any number of products, ranging from other vodkas to other alcoholic beverages. The specific substitutes are large vodka brands that dominate the retail, nightlife, and restaurant markets; as well as craft beer and wine.

Substitute Strengths Weaknesses How is BWS better

Mass Produced Spirits

Lower Price No local connection Local infused vodka, Self-distributing to bars and restaurants

Craft Spirits Already in market, head start with PLCB

Market is unclear Locally produced from apples, infused for elixirs and cocktails

Craft brewed beer and wine

Well established with local connection

Many options, oversaturated, too many choices for consumers

New market with high growth potential

BWS capitalizes on recent trends in the local food movement. The dominant brands share little about how their spirits are made, what the ingredients are, or where they are sourced. European brands still have a strong cache among US consumers. BWS differentiates by bringing spirits purchasing in line with food purchasing and by educating the consumer about the process behind their favorite cocktail.

Better World Spirits educates the consumer on the importance of quality, ingredient, sourcing, and environmental impact. The big brands gloss over the materials used in their products, and have relied on an image of European production being equated with quality. In the US, and particularly among the BWS target market, small craft companies, local ingredients and sustainable production are becoming much more appealing. In today’s world consumers are looking to make a difference with their purchases.

According to the 2012 Edelman Good Purpose Study:

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In 2012, 76% of global consumers believe it is acceptable for brands to support good causes and make money at the same time – this is a 33% increase globally from 2008. As social purpose’s role in purchasing decisions has increased, purchase frequency has also intensified: 47% of global consumers buy brands that support a good cause at least monthly, a 47% increase from 2010. Not only are consumers making purchase decisions with Purpose top of mind, they are also buying and advocating for purposeful brands. 72% of consumers would recommend a brand that supports a good cause over one that doesn’t; a 39% increase since 2008. 71% of consumers would help a brand promote their products or services if there is a good cause behind them; a growth of 34% since 2008. 73% of consumers would switch brands if a different brand of similar quality supported a good cause; a 9% increase since 2009.

BWS has created the following business manifesto:

we are better world spirits. we are fresh artisanal spirits and cocktails produced from locally grown fruit and grain. we are reviving the spirit of the whiskey rebellion and restoring pennsylvania’s place as a source of high quality local spirits. we know that we make a positive impact in the world by giving back. we support local sustainable agriculture to create a healthier world. we are pennsylvania proud. we believe everyone is virtuous. we believe in liberty and independence for all. we are free spirits. we are driven by purpose not profit. we are devoted to complete transparency and believe in a holistic approach to business. we consciously strive to create happiness every day with our words and deeds. we genuinely believe that diversity is the keystone to creating a more equitable and just world. we are building a better world one toast at a time! we are kindred spirits. cheers!

Operations

BWS has a vision of being a premium spirits manufacturer, with an attendant tasting room/bar, event space, and offices in a multi-story renovated building in the old downtown. Primary products will be a vodka and gin produced from local apple supplies, as well as other products on a seasonal and experimental basis. The spirits will be produced on a still designed by Dodo Distilleries, and built by local artisans in the York area. Daniel Feldman of Dodo Distilleries Consulting in Salt Lake City, UT has been brought into the planning process. He has been instrumental in planning,

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opening, and operating several distilleries in urban environments in North Carolina, Utah, California, Michigan, Florida, and Pennsylvania.

Current design parameters allow for a still up to 18’ in height and a 250 gallon batch capacity. Heat will be onsite generated steam, and fermentation capacity will be adequate to maintaining a 5 day per week schedule. Fermentable production will be offsite for the first phase, with further plans for mashing and/or mixing whisky or rum products. A local brewery is nearby, which may be contracted for initial barley and/or grain worts.

The production floor will consist of the basement section, which is approximately 1200 sq ft in area. This will house the entirety of the planned production area, with storage expansion planned for aged products in the second or third phases. Fermentation, stripping, distillation, processing, and bottling will all take place in the basement area. A dumbwaiter or other conveyance will be made available for transporting finished spirit from the bonded area to the tax-paid areas and upstairs storage.

Brown’s Orchards has agreed to provide locally produced cider for fermentation. Once the product is delivered to the facility it will be placed in custom designed wooden fermentation tanks and yeast will be added. Over several days alcohol will be produced during the process and the resulting liquid

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will be distilled to produce vodka. The vodka is then bottled and ready for making onsite cocktails or for direct sale to the public.

The production will take place in the basement, the first floor will serve as the tasting room complete with a bar. The second floor is an open air event venue that can be utilized for small music shows or corporate events such as fund raisers. BWS plans to partner with local organizations such as Cultural Alliance, YorkArts, Downtown, Inc. and more to arrange fund raisers whereby a portion of each cocktail and bottle sold will be donated to the organization. The third floor will serve as office space and storage. The attic will be converted into an employee lounge.

BWS will operate with holacratic principles, an innovative social governance system whereby all authority and decision making is distributed across the organization. This will allow for faster iteration and greater agility and quicker response to industry changes. By not adhering to the traditional top down management style, BWS will embed greater flexibility and be able to evolve and adapt to current conditions.

BWS is focused on providing equal opportunity for all citizens. At BWS all employees will be considered equally valuable and develop a peer based system that will allow individuals to self-set their salary (with guidance from their peers) and create a system to determine pay increases. Simply, all colleagues can come together for a meeting to discuss and honor their contribution and decide on the appropriate salary levels for each person. There will not be individual incentives but instead companywide bonuses that will be distributed based on a system developed by the interested parties.

SWOT Analysis

Strengths – Laws in PA have become very friendly to limited distilleries allowing onsite cocktail sales, two satellite locations other than main tasting room, and self-distribution to bars and restaurants Weaknesses – Vodka and Gin are dominated by the big multinational brands, Opportunities – Partner with brewers to distill local beer into whiskey. Agricultural Advantages- USDA Grant and Loan Programs are common and attainable in the state of Pennsylvania. Threats – Many local distilleries may develop and saturate the market Pennsylvania has a most favorable index for craft distillers as evidenced by the following graphic from American Distilling Institute.

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Venture Team

Wade Keech has a B.S. in Chemistry from Millersville University and an MBA in Sustainable Business Systems from Pinchot University. He started Whitetail Brewing in York in 1994 in the early days of the craft brewing industry and is very familiar with the alcohol industry. He is currently consulting for Barley Creek Brewing and Distilling and assisting in setting up a new distillery at an established brewpub. He is designing recipes and overseeing the production of spirits. He was a founding member of the PA Microbrewers Guild and now will assist the nascent PA Craft Distillers Guild and assist with the formation to aggressively work to improve the business environment. He is passionate about making the world a place where the children and grandchildren of today will be able to live and appreciate the world of tomorrow. He enjoys local food, complex flavor profiles, and a finely crafted dirty gin martini.

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John Wilson has a B.A. in English from Morehouse College, a M.A. in International Relations from Bond University and is currently pursuing a M.S degree Fermentation Science and Technology at Colorado State University. As an experienced grass roots organizer and program manager for international relief, John brings a unique perspective and skillset to the company’s social venture goals. John has also been studying fermentation and traditional fermentation techniques for almost twenty years. This experience brings an innovative approach in researching and developing new flavor profiles, allowing the company to company to offer a more unique and dynamic product line. John is passionate about his family, music, and the art of fermentation.

Ryan Schriver, graduate of YTI with an Associate’s degree in business management, brings his 22 years of experience to the forefront with his passion for classic cocktail history and knowledge. The foundation of his customer service and sales career started in many restaurant jobs in Pennsylvania, especially with his own concept in York- Club Seven (’06- ’07). Refining his craft really began in 2010 where he worked at Ciro’s Speakeasy in Tampa, FL igniting his “thirst” for the modern day craft cocktail. Ryan’s unique flavor changing cocktail creations has landed him 1st place in 2014’s Ciroc competition; 2nd in 2013 Best of the Bay’s Cocktail Competition (Dine Tampa Bay); and advancement to the 2nd round of Bols Genever’s worldwide search for Best Bartender. Most recently Ryan bartended at Charleston Food Bloggers #1 pick for the best restaurant in Florida 2014, Edison Food and Drink Lab. There he had the privilege of working beside 2014 GQ Magazine top 10 bartender pick, Ryan Pines. Ryan’s 2014 move back to York, PA fuels his drive to give back to the community and restoration of downtown York City.

Architectural concept drawing depicting current renovations being completed.

Page 20: Better World Spirits Benefit Corporation...Business Plan The information contained in this document is proprietary and confidential. This doc ument is the ... and marketing experience

Architectural concept drawing depicting outdoor seating area and new parking configuration.