What has changed in the beer marketplace today? (history of beer link) Be certain what has not changed is the popularity for many varieties and demand for new flavors of craft beers. However, what has changed is the price point today for these popular beers which is a result of the very high cost of small scale production and regulated alcohol beverage distribution. Also what has changed is the consumer demographic which today is nearly 70% comprised of the younger generations X, millennials, and genZ. These are more educated customers who are also technologically more skilled. The fast changing world of digital marketing and the adoption of Artifical Intelligence in a ubiquitous smartphone population has created exceptional conditions for The Beer Machine and HausCraftBeer product lines to achieve substantial growth.
There are two unique features that account for the high profit margins and the consumer savings in both The Beer Machine and the HausCraftBeer product lines. The Beer Machine is a product for the beer consumer providing real cost savings and high personal satisfaction. The HausCraftBeer system is a product for the commercial hospitality market that provides high profit margins and attracts customer traffic to the hospitality venue. Neither product line is restricted in growth by taxation or distribution restrictions because fermentation occurs only after final delivery to the customer. The two product lines supply the same ingredients which are produced in high volumes unlike small scale craft breweries that do not have the economies of scale. This process eliminates not only the high capital equipment cost but also the space and operating expenditues including labor which are exposed to supply line inflation thereby reducing and continually challenging profit margins. (see White Paper by Dr Michael Lewis UC Davis ) The more logical and understandable successful process is well proven by the Coca Cola business model.
The transformation begun by the craft beer movement provided EagleWatch Capital’s product lines exceptional sales opportunities that already have generated tens of millions in retail consumer sale dollars throughout more than 20 countries worldwide. Within that marketplace, beer consumption has grown to $650 Billion and forecast to reach one trillion dollars over the next 5 years. What is inherently valuable to The Beer Machine and HausCraftBeer system is the patented brewing process that management has developed under the guidance of Dr. Michael J Lewis and is integrating with the technology for today’s digital consumer which includes computerized operations and smartphone connectivity for operational and customer support. The simplicity and ease of operation that enables hospitality venues to produce all varieties of craft beers at costs from $0.35 to $0.55 per pint when consumers are paying $6 to $10 is Global Beerco’s leading edge. What’s more, is the many “Bells and Whistles” for the marketing departments in the hospitality industry who live or die based on attracting a steady growth of “foot traffic”. The global value of the commercial beer industry now exceeds $650 Billion and the Global Beerco assets when adequately capitalized could become a strong market disrupter as it reduces production costs and provides customers complete control of COGS. Both The Beer Machine and HausCraftBeer product lines are an embodiment of the “Razor to Razorblades” business model which management considers to be an excellent candidate for either a merger, acquisition, or IPO exit for investors.