Investment Opportunity
Investment opportunities today are plentiful and there are many choices each with varying degrees of attached risk. Technology is certainly exciting but for the average person can be difficult to understand and evaluate. Publicity is often based on numerous charts of similar investments; however, those similar results are nearly always never realized as statistics attest. Granted there are the occasional Amazons, Teslas and Googles which account for perhaps 1% of winners but drive the “me too” expectations in the marketplace. As Warren Buffet often reminded his investors; “we do not invest in what we do not understand”.
History confirms nothing is permanent except change. When small scale brewing began growing in the 1980 time period, changes in the number three largest consumer beverage market became apparent. At that time, as a television production and marketing company our perspective was framed by mass marketing disciplines and demographic research. That research identified where and how opportunity could be created without having to compete in such a large market and resolved how the Coca Cola business structure was a perfect adoption model. In that endeavour during 35 years of experience in the industry, we maintain having created patented solutions to existing problems and challenges that have opened a rich window for global growth and profitability through both the consumer and hospitality segments of the global 650 Billion dollar market.
The global beer market is a consumer industry that will soon reach One Trillion dollars. It has enormous potential for the new technology developed and market proven that can be universally applied and deliver solutions that address competition, produce greater profits and satisfy eco-friendly demands. The beer market is somewhat easy to understand because everyone knows that beer and especially “Craft Beer” is not only popular but also an essential alcohol beverage within the enormous global hospitality industry. The convergence of a younger educated demographic and their desire for fresh, flavorful varieties of socially responsible locally brewed beers has popularized craft beers even with their much higher price points. The industrial scale brands unable to compete have responded by purchasing craft beer breweries that dominate in key markets. The Beer Machine and HausCraftBeer product lines have a huge marketing advantage because neither distributes alcohol – only the equipment and the ingredients which free of alcohol regulations allow it to scale much faster when adequately funded. When scaling successfully, the two product lines may become attractive for a buy-out from established industry suppliers and producers.
A market as large as the global beer market is very competitive for beer brands however, our approach has been not to compete but to create a superior product where there is little or no competition. We have created patented processes and equipment including ingredients that have simplified the process and reduced cost to brew your own beer with The Beer Machine for the consumer not only convenient but also very economical. For the hospitality commercial markets such as Casino resorts, large restaurants and sports bars, pizza houses, eatertainment sports venues and cruise ships, the HausCraftBeer system provides equipment that employs the same basic process but on a larger scale with automated features. The broad scope of automated features eliminates expensive labor and traditional operating costs enabling attainment of production costs as low as $0.35 to $0.55 per pint for draft beers that sell on taps for $6 to $10 per pint. The HausCraftBeer system also includes equipment to brand and market a hospitality venues unique brand of craft beer in convenient cans and growlers.
The EagleWatch (EW) technology underlying The Beer Machine product line and the HausCraftBeer product line are a patented innovation developed under the direction of professor emeritus Dr Michael J Lewis professor of brewing sciences at the University of California Davis and acclaimed by the Smithsonian Institute Museum of American Culture as a father of the craft beer transformation. The technology is based on a simple and rational change in the process of brewing that eliminates both the high capital cost and the high operating costs of brewing beer. Brewing beer in the traditional process requires much attention, space and operational costs.
With the expensive “Hot Side” of brewing eliminated and only the Cold Side or fermentation process in both The Beer Machine by the consumer and the part time operator in the HausCraftBeer system the economies gained are very substantial. The brewer is now dealing only with prepared powder Ingredients for fermentation. It is the brewer’s yeast that completes the process of converting the powdered ingredients to beer.
The Power of the Powder
Bag-to-Bag Technology
The process is further simplified by EagleWatch’s patented bag-to-bag technology whereby the brewing ingredients are shipped in an aseptic bag and at the place of brewing transferred into a brewing bag that lines the inner walls of the fermenter. This eliminates the time and cost of labor to sanitize the fermenter prior to every brew which the traditional brewery must complete before brewing. The brew bag eliminates exposure to harmful caustic chemicals necessary to sanitize the stainless-steel tanks and reduces the consumption of water from roughly 10 gallons of water to 1.5 gallons of water for each gallon of beer produced. Discharging wastewater with chemicals and organic waste can attract regulatory restrictions.
Innovation
It is noteworthy to consider Elon Musk did not invent the automobile. He adapted todays new technologies to driving with the promise of driverless safety. He changed the process of providing power from an internal combustion engine to a lithium battery power source.
Coca Cola does not make its world-famous drink. It controls the process by making the syrup to produce Coca Cola and licenses bottlers and packagers to distribute in all markets. We take the Coca Cola business model two steps further by the spray dry process, so we are not shipping water and provide our patented small footprint automated HausCraftBeer brewery system.
Sierra Nevada craft beer was begun by a homebrewer just like most of the successful craft beer breweries today. The technology developed by Eaglewatch and incorporated in the two product lines has created a more profitable process for brewing all varieties of craft beers that has also been the business model of the world’s most successful beverage Coca Cola.
The technology developed for The Beer Machine product line drove consumer retail sales in the tens of millions of dollars and its technology evolved and has been refined for a commercial product line known as HausCraftBeer which is now featured in several large casino resorts and restaurants in the hospitality marketplace.
Based on the convergence of demographics, the rising price points for craft beers and the success of the two product lines in the consumer and commercial beer market, we postulate that Eaglewatch’s technology when capitalized for market expansion is positioned for substantial growth and profitability affording a potential 10x ROI for early participation.
Eight Key Features of Our Investment Proposition:
There are well established “boxes to check” to determine if a product is “market tested” and ready for a funding to scale and realize its potential:
1. Is the product unique?
The Beer Machine technology was awarded three U.S. patents for its innovative approach to simplifying the brewing process. The success of the product line has led to the development of new patents that secure the future of The Beer Machine’s technology for years to come.
The system’s uniqueness is currently being enhanced by equipping it with Internet of Things (IoT) technology, enabling users to monitor the brewing progress in real time via smartphones. This “Beer Machine model by HausCraft” innovation represents a major leap forward in home brewing and provides a menu of brewing services as well as a direct-to-consumer platform for ancillary products such as our Beer Mixes. Marketing synergy with our HausCraftBeer locations provides cross promotional opportunities for building customer traffic.
The HausCraftBeer System offers a cutting-edge small-space brewery for hospitality venues. It’s beautiful copper and brass tanks attract customers while enabling businesses to brew all varieties of craft beers from $0.35-$0.55 per 16 oz pint. In contrast, the same beers “On Tap” retail from $6-$10, giving venues much higher profit margins than distributors kegs. With advanced technology that reduces capital and operating costs, HausCraftBeer offers the hospitality industry a truly unique and profitable solution. www.hauscraftbeer.com
2. Does it have a short term or have a long-term life cycle?
The beer market has existed for over 5,000 years, and both The Beer Machine and HausCraftBeer System are designed to endure within this robust and growing recession resistant market with cost savings and patented process efficiencies that meet the essential requirements for many years of profitability.
The Beer Machine was introduced in the late 1980s and gained widespread popularity for its innovative brewing technology. Despite a temporary production halt due to COVID-19, it is now being equipped with new patented technology developed for the HausCraftBeer and will be rebranded as “The Beer Machine by HausCraft.” This cross-branding opens new marketing opportunities and ensures a long product life cycle beyond the present 35 years.
The HausCraftBeer System has been sold and installed in large Casino hotel resorts and has experienced strong interest with the international cruise ship industry. Other markets include large restaurants, bars and night clubs, Caribbean Club Med and Sandals resorts, a Craft Beer and Pizza House franchise, Ski Lodges, Sporting and Eatertainment facilities, the 19th Hole Golf lounge, specialty boutique Hotels, hospitality venues with sizeable draft beer sales, remote guest lodges.
Each installation acts as a marketing centerpiece with eco-friendly technology, offering durable and high-profit brewing for venues. Its ability to scale as demand grows has already been demonstrated through expansions at various locations, underscoring its longevity.
Each installation has a life expectancy equal to that of the hospitality venue and its beer menu. The beer market is not only perpetual but so is the desire for profit margins and marketing content in hospitality venues. Beer also sustains resistance to recession.
3. Does it have unique technology advantages?
Both product lines integrate environmentally friendly technology, which aligns with regulatory demands and gives them an edge in today’s sustainability-focused market.
The Beer Machine and HausCraftBeer System feature patented brewing processes that are optimized for both home and hospitality settings. The incorporation of IoT technology uniquely positions these products ahead of competitors by reducing operational complexity. Real-time data communicated to smartphones eliminates the need for a full-time brewmaster in hospitality settings and allows consumers to monitor their homebrewing progress.
Furthermore, both systems utilize a proprietary powdered ingredient Bag-to-Bag process, which eliminates the time-consuming boiling stage in brewing, further cutting down costs and increasing convenience.
4. Does it resolve existing problems? Is it more convenient, create savings, or other advantages?
Yes, both product lines address key pain points within the craft beer industry. (see patent disclosure) The HausCraftBeer System provides hospitality venues a low-cost solution to brewing premium craft beers on-site, saving on logistics, labor, and ingredient costs. By eliminating the need for extensive brewing equipment and real estate, it reduces the typical barriers to entry for venues looking to brew their own beer.
The Coca Cola business model centralizes ingredient production of its unique syrups to cut costs and ensure consistency. Similarly, the consolidation of ingredient production and adaptation of spray drying technology helps Global Beerco eliminate the high capital equipment, space and operating costs that inhibit the craft beer breweries and protects against the inflationary challenges of the beer industry today.
The Beer Machine, on the other hand, simplifies home brewing by offering consumers a convenient and affordable way to brew quality craft beer in as little as 7-10 days compared to the weeks-long traditional process. Its popularity as a gift item during the Christmas season further highlights its appeal and convenience to the average consumer.
5. Does it address a large market opportunity?
The global beer market is valued at $650 billion, making it one of the largest and most stable consumer markets. Both The Beer Machine and HausCraftBeer System are ideally positioned for rapid expansion being unencumbered by distribution regulations or alcohol-related taxes.
The Beer Machine has already been sold in over 20 countries offering consumers an affordable way to enjoy homebrewed beer. With the integration of IoT technology, the system will cater to a younger, tech-savvy generation, who are driving the demand for craft beer and personalized brewing experiences. Today’s ubiquitous smartphone consumer demographic is fertile space for scaling a patented technologically advanced The Beer Machine by HausCraft product line.
Global Beerco has addressed the enormous international beer market through both direct to the beer consumer ecommerce by The Beer Machine and the hospitality segment of the market with the HausCraftBeer brewery system. The evolution and wide consumer adoption of the ecommerce world provides global opportunities for The Beer Machine that far exceed prior traditional distribution models. This 650 Billion dollar market is both very diverse and growing.
The HausCraftBeer Brewery system has been sold and installed in large Casino hotel resorts and has experienced strong interest with the international cruise ship industry. Other markets include large restaurants, bars and night clubs, Caribbean Club Med and Sandals resorts, a Craft Beer and Pizza House franchise, Ski Lodges, Sporting and Eatertainment facilities, the 19th Hole Golf lounge, specialty boutique Hotels, hospitality venues with sizeable draft beer sales, remote guest lodges.
6. Does it possess a competitive edge?
Both product lines have secured patents that protect their unique technologies, making it difficult for competitors to replicate their success. The Beer Machine benefits from years of development and tooling to mass-produce and distribute globally at a lower cost gives it a strong pricing advantage. Having been in traditional mass marketing retail over many years we understand how critical price points are in reaching volume sales.
The HausCraftBeer System stands out in the market due to its patented “bag-to-bag” technology and powdered ingredients which eliminates traditional brewing complexities. By eliminating the need for a hot-side ingredient preparation process, the system simplifies brewing for hospitality venues, enabling them to maximize profitability while offering their customers fresh, high-quality craft beer. This competitive advantage, coupled with the high barriers for competitors due to the patented brewing processes, ensures Global Beerco‘s products remain in a class of their own.
7. Is there an exit plan?
Yes, Global Beerco has multiple attractive exit strategies. With two product lines that cater to both consumer and hospitality markets, the company is positioned to attract interest from larger industry players, whether through a merger, acquisition, or a public offering.
As the number of HausCraftBeer installations increases and The Beer Machine expands its direct-to-consumer reach with its IoT enhancements, the company expects significant value creation over the next 3 to 5 years. This growth trajectory provides multiple options for a profitable exit, either by selling to a major beverage or equipment manufacturer or through listing on a public exchange. The enterprise value can be estimated in the first page of the Financial forecasts for both product lines. As the scale of operations increases after year two, significant value is forecast to materialize.That should merit the investigation of either a merger, acquisition or publicly traded company. In such case, the PE ratio applied to “EBITA” would be the most likely basis for valuation and exit considerations.
8. What are the qualifications and experience of the company management team?
The Global Beerco management team comprises seasoned entrepreneurs with deep experience in consumer sales and marketing. Having generated tens of millions of dollars in retail sales, the team is adept at scaling innovative products and reaching new markets.
With an adequate marketing budget to support trade shows, video eMail campaigns, for website marketing, newsletters, industry events and digital marketing opportunities the forecasts are projected to grow substantially and profitably within the aforementioned 5 year time period.
The team also includes a group of expert brewers from the University of California, Davis, guided by the pre-existing research and development by renowned Dr. Michael J. Lewis, often referred to as the “Father of the Craft Beer Movement.” Dr. Lewis’s extensive experience in brewing has provided Global Beerco with unmatched expertise in the science of brewing.
With a strong leadership team and a wealth of industry knowledge, Global Beerco is poised for substantial growth and success.
Conclusion
By thoroughly addressing these eight critical questions, Global Beerco demonstrates a strong investment proposition. The company’s unique patented technologies, vast market potential, and seasoned management team position it for scalable growth, making it an attractive opportunity for investors seeking both short-term gains and long-term returns.
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