We are not “newcomers” to the craft beer industry. In fact, we were involved from the beginning when craft beers were know as Micro Brew beers. As early as 1984, Ian MacLennan became curious as to WHY big changes were occurring at that time and began to research the history of the beer market in North America. He learned that because of the prohibition period which began in 1918 and lasted through 1933, that the quality and variety of beers was greatly compromised when the industry restarted brewing and became monopolized by an industrial production model that forged a partnership with advertising giants in New York to nationally distribute a standardized product. Until President Carter in 1978 approved small scale brewing and homebrewing in America, it was not a legal business. Ian concluded that the huge size of this American consumer market that had been denied the variety of choices that small scale brewing provided presented an enormous NEW market opportunity. This he recognized was what Harvard University has recently defined as a “BLUE OCEAN MARKET” as compared to a “RED OCEAN MARKET”.
When home brewing became legal in 1978, many brew kits were introduced to the United States from overseas. However, they were time consuming and complicated procedures that we knew would limit the market to a “hobbyist” demographic and our experience was in consumer mass marketing. However, this new “Blue Ocean Market” was strong motivation for development of The Beer Machine product line which was designed for the American consumer to be easy, simple, fast, and uncomplicated. These features have appeal to the much larger consumer beer market for producing endless varieties of fresh, naturally brewed craft beers at a cost of just”pennies per serving.”
We put together a professional team of brewing experts and design engineers with the goal of making tasty craft beers without the hassle or headaches. We consulted with one of the fathers of the “micro brewing industry”, Dr. Michael Lewis, professor of Brewing Science at the University of California”. Dr. Lewis wrote the text books from which master brewers learn their profession. Throughout the years since, we have added master brewers to our team with Phd degrees in the science of brewing and many years of experience at Anheuser Bush and leading regional craft breweries. The result has been our Beer Machine success story. The easiest and fastest way to make great tasting beer right at home for “pennies per serving.”
The Beer Machine product line was launched in Canada and immediately achieved domestic success marketing through traditional retail stores. After several years of retail distribution in thousands of stores throughout Canada and the United States, international markets became attracted to the products retail success. Since then, the product line has generated retail sales approaching 100 million dollars in a global distribution and in that journey, assembled one of the most highly esteemed technical teams in the brewing industry to support global expansion. Today, “The Beer Machine by HausCraft” is being upscaled to include digital technology and the internet of things (IoT) features which identify with the markets growing tech and wi-fi demographic. As the digital world evolves and our generations of internet born consumers have become craft beer enthusiasts, “The Beer Machine by HausCraft” is being equipped with digital innovation to control the fermentation process and send brewing progress reports to the consumers smartphone. The “internet of things” ( IoT) world is where todays younger generation of craft beer consumers live. Although being refreshed with new technological features, “The Beer Machine by HausCraft” remains true to its original purpose of bringing craft beer brewing to the consumer in the easiest, fastest, most convenient and cost efficient way.
The massive adoption of ecommerce and social media platforms in recent years has greatly changed traditional retail marketing creating many new global opportunities for “The Beer Machine by HausCraft” product line. Global retail sales growth will continue to rise and take up more retail market share. According to eMarketer, online retail sales will reach $6.17 trillion by 2023, taking up 22.3% of total retail sales. This creates a direct channel for valuable real time consumer connections where a new generation of “The Beer Machine by HausCraft” with wi-fi enablement and the “internet of things” applications strengthens long term customer involvement and enterprise value.
These features create a marketing connection and a data bank not accessible to craft and industrial brewers who market indirectly to consumers through the regulated three-tiered distribution system. These technological features will have strong appeal for today’s craft beer consumer who must pay premium prices for their craft beers but can still enjoy The Beer Machine’s original feature. That the Beer Machine makes brewing all varieties of craft beers easy, fast, convenient, and economical.
As well-seasoned businessmen and frontline operators, management soon realized the global potential and established a manufacturing and distribution pipeline through more than 20 countries around the world for The Beer Machine consumer product line and began development of a much larger model as a commercial product that creates these same beers at costs between $0.35 to $0.45 per pint in the large hospitality market called HausCraftBeer (formerly HouseBrew).
Dr. Michael Lewis
Professor Emeritus of brewing sciences at the University of California in Davis, Ca and considered by many including the Smithsonian Institute as one of the Fathers of the Craft Beer movement explains the HausCraftBeer (formerly HouseBrew) technology during an Australian media interview in Sydney.
The Beer Machine consumer product line may be viewed at www.beermachine.com and the commercial HausCraftBeer product line at www.HausCraftBeer.com (Please note: “HouseBrew” was rebranded to “HausCraftBeer” to differentiate it from coffee products)
Today, the $650 BILLION global beer market is experiencing its greatest period of change in 100 years. These changes present enormous financial opportunity for the patented technology which The Beer Machine and the HausCraftBeer brewing system have developed and proven in the marketplace. A new generation of highly educated millennial and generation Z consumers have not responded to the big beer brands advertising as had the baby boomers. Millennials and GenZ want more choices, more flavors, and less additives. Fresh and Local is todays beer consumer mantra for which they are willing to pay premium prices.This widespread change is now permanent with more than 8000 small scale craft brewers in the United States providing wide varieties of taste and freshness along with premium prices. Consumers today are often paying $5 to $7 and more for their draft beers.
The Beer Machine and HausCraftBeer brewing process with brewing costs from $0.35 to $0.45 per pint and patented innovation is uniquely advantaged as Global product lines with the internet of things (IoT) technology and consumer applications.
The ingredients for brewing craft beers have been formulated with Dr Michael Lewis, professor of Brewing Sciences at the University of California, Davis for producing endless varieties of fresh, naturally brewed craft beers. Today, many popular Beer styles and recipes are prepackaged as a Beer Mix by FDA, ISO 9002 and FSSC22000* certified food packagers for the company ready to brew. Today, The Beer Machine remains the easiest, most economical and fastest way to make great tasting craft beers right at home. Its popularity drove sales throughout more than 20 countries around the world and created a new product category for retailers including Costco, Macy’s, Sharper Image, Target and hundreds more resulting in retail sales approaching $100 million.
All breweries and their distributors have recognized the market demand today for a variety of naturally brewed preservative free craft beers is not a fad but a permanent transformation that is defining the industries future. That future is being driven by a well-educated millennial and younger generation. This validates the early vision embraced by EagleWatch Capital in 1986 and confirms the wisdom of its decision to now capitalize and fully exploit the unique advantages it possesses to rapidly penetrate the transformation occurring in a $650 Billion global market.
With a competitive edge to access the global market and a base to introduce The Beer Machine IoT the two product lines provide a time and market tested product that embraces today’s new technology within a global market niche it is uniquely capable to exploit. Likewise, the larger “HausCraftBeer” Brewery System has been successfully developed and marketed in the commercial market which is driven by the incentive of greater profits, market relevance, and addressing the wants of a rapidly changing demographic in the hospitality industry.
EagleWatch Capital developed its business operations within the beer industry maintaining a policy of private growth while establishing a highly professional team to support its global plan. The recent passing of Vice President Colin MacLennan has precipitated a reorganization and capitalization to accelerate growth and expansion of The Beer Machine consumer product line and the commercial HausCraftBeer product line. Current management with the technical team including all manufacturing and marketing assets described herein are reviewing proposals for reorganization to capitalize on the global market opportunities available to these profitable assets. Serious inquiries in regard to opportunities should be directed to Ian MacLennan at: ianmac@eaglewatchcapital.com
*Having acquired FSSC 22000 means the company has an efficient, safe and robust food production and management practices that are globally trusted.