1 Distillery Channel Coffee, LLC FOYestateCOFFEE “4th Wave of Craft Coffee”©
Business Overview for “The Distillery Channel Coffee, LLC”
This business plan is to initiate discussion of creating combination National Office/ Coffee Shop/Roastery for The Distillery Channel Coffee, LLC. This business entity is created in the Distillery Channel Coffee, LLC for onsite consumption, media exposure and specialized coffee roasting for distribution on a local and national scale. Two communities have been targeted for this National Home Office – which are Lake Geneva, Wisconsin and Geneva, Illinois.
Lake Geneva, WI is one of the top tourist destinations in the USA located in the South East part of Wisconsin, in the middle of Chicago, Illinois, Milwaukee, WI and Madison, WI.
Geneva, IL is the premier suburb of Illinois, high net worth, mobile community, known as “Jewel of the Midwest”, female destination, due to shopping and dining; a 50-minute Metra Ride from Downtown Chicago.
The following are potential opportunities for establishing this local business and its growth opportunities.
• The Distillery Channel and Foy Estate Coffee has specific industry knowledge gained through years of research and current company knowledge and persona.
• The Distillery Channel and Foy Estate Coffee has marketed and lived in the specific areas of Northern Illinois and Southern Wisconsin distributing coffee samples and taste tests in multiple farmers markets, festivals, and week end private distributions.
• Foy Estate Coffee is an independent DBA housed in Wisconsin under a parent company, Distillery Channel Coffee, LLC.
• Distillery Channel Coffee, LLC has five members, with Randy Weckerly, majority member
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This is neither an offering nor a solicitation for investment. This material is Private and Confidential; and limited to the persons or persona requesting a general overview for continuing in conversations to clarify some mutual points of interest.
Address for:
Distillery Channel Coffee, LLC.
1103 Lake Land Dr.
Lake Geneva, WI 53147
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EXECUTIVE SUMMARY
The Distillery Channel Coffee, LLC. National Offices, Coffee Roastery, Coffee Shop and Media Center.
Due to growth in distribution and sales, there is a need to expand roasting capabilities of specialized coffee beans, infused with bourbon, rum, wine, moonshine, ales, and other specialty tastes. The marketing capabilities of The Distillery Channel and specific knowledge of the Master Roasters and have combined to form a unique opportunity in the fast-growing market segment of Specialized Coffee.
Specialized Coffee Roasting and Distribution.
• Opportunity: Infused Coffees using World’s Best Coffee Beans to best support the bourbons, rums, wines and moonshine from the “best of the best” of our Distillery Channel Members which now number over 10,000 small craft providers in the Distillery Channel Platform of Members. The Distillery Channel markets its multimedia “Happy Hour Lifestyle Show” and “The Next Taste” podcasts on several platforms such as iHeartRadio, TUNEIN-Alexa, Spotify, iTunes and five other major platforms. The ISSUU digital media platform is the home of “The Distillery Channel Coffee Journal”, a monthly magazine.
• Mission: Establish a multifunctional national office base for “The Distillery Channel Coffee, LLC” which would include-Coffee Shop proof of concept, a back room green coffee roastery, media center for podcasts and live entertainment for coffee shop guests. The Coffee Shop concept would grow and scale on a national level
• Opportunity: Foy Estate Coffee and The Distillery Channel have formed a unique opportunity with the multitude of media fire power in the millions and master roasters in house. “Foy Estate Coffee” is the family heritage name of Randy Weckerly, whose mother was a Foy.
• Market Focus: Coffee has one of the largest and fastest growing opportunities for world class Specialized Coffees; this has one of the widest ranging demos in America. The demographics for The Distillery Channel are high-end wealth, interested in travel, loyal customers. (Facebook and Twitter Analytics)
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• Expected Returns: Exceptional returns are expected due to The Distillery Channel’s unique position in the USA; while coffee is basically adding hot water to coffee beans and generating about 40 cups of coffee served out of every pound of coffee roasted. Very few coffee shops go out of business. The Distillery Channel has a unique position nationally by owning and copyrighting variations of “4th Wave Craft Coffee” and “4th Wave Infuse Coffee” plus the companion .com’s.
COMPANY OVERVIEW
• Company Summary: The Distillery Channel Coffee, LLC was created after research in media, advertising, coffee buying/sourcing, roasting methods and developing the Distillery Channel Platform. However, due to years of marketing experience and business investigation into the fastest growth markets, in 2015, “The Distillery Channel” was created We were subsequently asked to become the marketing arm of the small craft industry. Beginning in 2008 we also began investigating the multiple growth of the specialized coffee industry and home coffee roasting.
• Mission Statement: Roast, grow, support and entertain while people work, relax, socialize, read and perhaps play games while drinking the world’s best specialty coffees.
• Company History: Formulated through growth, investigation, world travel, and multiple consulting contracts stretching around the world.
• Markets and Products: Our media and coffee plus our story can be found at www.thedistillerychannel.com which also points to www.foyestatecoffee.com .
• Management Team: Randy Weckerly, Rob Ladd, Andy Paulson, and Kira Peterson are the management, and day to day members of the company.
• Legal Structure and Ownership: The Distillery Channel Coffee, LLC a Wisconsin Member/Member organization
• Distillery Channel Coffee, LLC: “The Distillery Channel-Platform” of over 10,000 Small Craft Business; The Distillery Channel .coms; Radio Syndication with America First Radio and Westwood One; and “The Distillery Channel Coffee, LLC” “The Distillery Channel Coffee, LLC”
• Locations and Facilities: The home base is Lake Geneva, WI, 90 minutes north of Chicago, 40 minutes from Milwaukee and 60 minutes from Madison, WI. A capital infusion would necessitate immediate
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growth of personnel added to sales acquisition, social media team, roasting coffee beans, distribution, warehouse, and multiple other marketing entities. Our current office location is in Lake Geneva, WI.
PRODUCT DESCRIPTION
Specialized Coffee Roasting and Infusion of Specified Products and Liquors.
• Opportunity: The Distillery Channel Coffee, LLC has specifically trained roasters and a method of infusing the world’s best specialty coffee beans, also source for the specific infusions. We have green coffee bean import abilities and guidance on spot coffee markets for the specific and unique beans needed on a case by case basis for specified infusions. We have national relationships with multiple large coffee roasters for some our roasting needs.
• Product Overview: The Distillery Channel Coffee Team attended markets and festivals and dispensed over 20,000 cups of coffee this year of their specified infusions. As of today, not one individual has given a negative rating. Orders are being placed online through our online store. We have the ability to advertise and market to our over 10,000 small craft business owners, who have at least 5000 Facebook followers each; and through our Facebook marketing ROIs supported by Instagram to the millions the Marketing Team from Facebook encouraged us to use and learn in 2019. Facebook national marketing team sought us out for specialized marketing training for using their market “Boosting” on the Facebook algorithm.
• Key Participants: Our media team is strongly supported by our third party affirmation of our on air participants: The Master Chef of the PGA Tour, and Master Chef of The TPC Potomac at Avenel Farm Dave Trevelino; Mike Calbot, “The Golf Doctor” out of Bonita Springs, Fl. Mike has over 3 million followers on TV for over 30 years; Art Stricklin- President of The Texas Golf Writers Association and an eminent author and broadcaster; and Dina Garcia, RDN and owner of the website www.vidanutrician.com out of Miami, Florida.
• Pricing: Pricing on the infused products nationally, we established a favorable market price, while maintaining a rich margin of 300-500%.
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MARKET ANALYSIS
• Coffee Roastery: There are a number of local coffee shops in the Lake Geneva, WI and Geneva, Il communities. However, there is wide opportunity for coffee shop, media center and roastery for The Distillery Channel’s Coffee and our Media Team as we are nationally unique in this business separator
• Lake Geneva is one of the Top Ten USA Travel Destinations as of 2018. Home of Geneva Lake, millions of people venture to this area year-round. Our Media Team is highly engaged and liked in the Midwest and Nationally. We are also very well positioned in the Geneva, IL area, an important destination in the Chicagoland area. Our intention is to produce our shows in a public area of our roastery and encourage people to come and join us.
• Market Segmentation: We have need to produce, on a daily basis, our infused specialty coffee product which ships to our national individual “Distillery Channel Platform” members who want us to do private label coffees for their businesses. Currently, we have over 300 distilleries and wineries who want us to produce their private labels, and our roasting capacity is not high enough to meet their needs.
• National Retail: We have local coffee shops, restaurants, liquor stores, cheese shops and other businesses who indicated wanting our products, and again, we do not have the capacity to produce these products prior to expansion.
• Competition: There thousands coffee shops throughout America; however, none that we can find with our unique capabilities.
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OPERATING PLAN
We would operate our home office location as our main national office, coffee roastery and media event location. We would plan to serve coffee daily from 6:30am-10:00pm. Live podcasting/entertaining would be morning and evening on most days for about two hours in each daypart.
• Sourcing and Order Fulfillment: We have in place three of the largest coffee importers and professional guidance on ordering beans from the international tropical origins of specialty coffees on the spot market. Sourced beans can range from $2.30 to $8.00+ per pound, delivered.
• Payment: We accept payments on the SQUARE, a standard for this business.
• Technology: Our infusions are proprietary in production and the methods are tightly held inhouse.
• Key Customers: Local coffee drinkers to national Distillery Channel Platform Member Businesses and assorted retail customers.
• Key Employees and Organization:
• Randy Weckerly/Partner: President/Publisher/Master Roaster: Multiple Degrees in Communications, Formerly on Mutual of Omaha’s Wild Kingdom with Marlin Perkins, and now host of “Happy Hour Lifestyle Show”, “The Next Taste” and thousands of media presentations.
• Joanne Tallon/Partner: Vice President Controls Contact Management System, Finances, Shipping and Fulfillment and liaison to the Distillery Channel Platform.
• Kira Peterson/Partner: Vice President known as Miss Kira throughout our media. Miss Kira is the Editor of our “The Distillery Channel Coffee Journal”, co-host of all shows; known at #MissKira – a Fresh Face of Golf and the LPGA #inviteHer Campaign 2018-19, formerly a professional photographer for national media and concerts.
• Proposed Facilities: Pictured here is the building which would be ideal for this type of operation.
This eclectic Euro interior is well suited to capture the warmth of the coffee and relaxation social experience of the Café du Foy, still in existence in southeast Paris.
History of Café du Foy, 1789, claimed French Revolution began when a patron step atop a table and declared such.
We currently are researching lineage to existing owners.
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MARKETING AND SALES PLAN
The Distillery Channel has a proven ability to market on a local, regional and national level. Below is a current marketing one-sheeter we are using for our national and local concerns and businesses like: Geneva Illinois Chamber of Commerce, NEXBELT Company, TaylorMade Golf, Vessel Bags, Rovos Rail of South Africa, and multiple advertisers.
DIGITAL MARKETING
“RECIPE FOR A DIFFERENCE” Digital Magazine – Podcasts – SocialMedia –Third PartyIntroductions andAffirmations
INGREDIENTS
• You getto useour deep deckof FacebookInstagram and ISSUU MarketingTools and Followers
• Our National ContactManagementDeck is availablefor Directmarketingfor our Sponsors and Advertisers –Provides a validintroduction toa Demographicyou will value
• Our Media Team is availablefor SplitScreenInterviews, Unboxings and On-AirExtended interviews onourweekly podcasts
WE ARE THE ALTERNATIVE
• ROI’ s arehard tounderstandifyou stillareusingtrade shows,billboards,paper,directmail, orbroadcast advertising
• TheDistillery Channelmarketing team synchronizes Facebook, Instagram, ISSUUMagazineFeatures, and your Social Media for acompactand innovativeprocess using our multimediaproductions
• Facebookand ISSUU has given us a Look Alike deck of followers now numberingin themillions thatyou can includeina fullpackageof marketing efforts
Testimonial:
“When Ilookedatthe amountof moneyIwouldspendgoingto tradeshowsandthen try ngtodothe follow-ups;
“The DistilleryChannel”presented agreatalternative,usingthe r digital marketing mediaknowledge andunrelentingdesire touse make-sense marketing
We hadfundo ngourinterviewsandthengettingto meetthe media teamindepth aswe aligned The DistilleryChannel sapproach to digital marketingwith ourcompany Aterrif cexperience
Joel P
MAJOR SPONSORS AND THOSE GROWING THEIR BUSINESS APPRECIATE THE HANDS-ON APPROACH OF THE DISTILLERY CHANNEL TEAM
Item 1:“TheDistillery Channel Coffee Journal” an online andinteractive magazine, supported by the ISSUU platform where your national marketing can be doneby major city distribution alongwithour national delivery
Item 2:“HappyHour LifeStyle Show andPodcast” a weekly podcast on allmajor platforms Our show is goinginto radio syndication in March of 2020
Item 3:“SplitScreen and Creative Special Interviews” with our mediateam of Miss Kira,OleUncle Randy andTimBona focusingonyour company oreventswith ability to deliver usingtodaysdigitalmedia
Item 4:“Contact Usto begin” contact Miss Kira to begin developingyour business plan and features: kira@thedistillerychannel com
TheDistillery Channel 1103 Lakeland Dr LakeGeneva, WI 53147
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• Sales Strategy: All salespeople are commissioned and highly bonused for growing levels of production. We use our national and international connections for company trips and bonuses.
FINANCIAL PLAN
• Projected Start-Up Costs: The Distillery Channel has no debt due to banks or credit cards. All money invested over the past ten years has been from principals and loans to the business have been internalized.
• Startup Costs for Roasteries are very much standard. Normal cost to start a coffee shop is about $225,000.00-$750,000.00 for purchasing a roaster, delivery and installation along with restaurant renovation, needs of refrigerators, sinks, coffee grinders, cappuccino machines, microwaves, dishwasher, nitro infusions, silverware, tables, chairs, and the like.
• Mill City Roasters and Loring Roasters are the leaders in the industry: Approx: A $30,000 roaster will roast about 550pounds per eight-hour shift Approx: A $65,000 roaster with roast about 1600#s per eight-hour shift.
• The Distillery Channel Roastery Décor – “A European Distillery Authentic Feel” Would be eclectic, memorabilia and highlights from our world travels, productions while having a natural feel with books, artwork and comfortable surroundings to enjoy our media presentations while sipping some of the World’s Best Infused Coffee.
• “Wall of World Coffees” housing our infused coffees, world class sourced and roasted for retail purchase.
• The Distillery Channel owns “4th Wave of Craft Coffee©” and “4th Wave Infused Coffee©” – while the coffee industry has “Waves of Coffee”, which began around year 1900, we knew we were creating something special and new, and subsequently copyrighted and .com-ed both. This is a valuable asset.
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Preliminary Floor Plan for Coffee Shop
APPENDIX:
Initial Start Up Costs: Costs can vary greatly. Rent for the entire structure would be about $2500$4500 per month, with the roaster in the back and the coffee shop/entertainment center in the front. There is room for our media productions in this location. There is room for a modest inventory of beans on hand for roasting, approx. 4000-6000 pounds per week.
Variations on these costs can vary considerably due to available space size and location.
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COST ITEMS/approximate Start Up Advertising/Marketing/Online Boosts $15,000 Employee Salaries/ $25,000 Employee Payroll Taxes and Benefits $7,500 Rent/Lease Payments/Utilities $4,500 Postage/Shipping/Fulfillment $2,000 Communication/Telephone $1000 Computer Equipment/Laptops/Media $1500 Computer Software/Highrise/Envato ETC $800 Insurance/Cyber/Product Liability $800 Interest Expense 0 Bank Service Charges/Square $650 Supplies/Cups/Shop/ $2,000 Travel & Entertainment/ $4,000 Roaster Equipment/Mill City/Beans $45,000 Furniture & Fixtures $50,000 Leasehold Improvements $50,000 Security Deposit(s) $6,000 Business Licenses/Permits/Fees $3,000 Professional Services - Legal, Accounting $4,000 Consultant(s) $2,000 Inventory $15,000 Cash-On-Hand (Working Capital) $150,000 Miscellaneous $30,000 ESTIMATED START-UP BUDGET $439,750
The Distillery Channel Coffee Shop
Profit and Loss Projected for 2020
The Opportunities:
• Franchising the model creating and teaching newcomers how to roast is a possibility. We have a relationship with Mill City Roasters to do so, as they want to franchise their roasting and teaching abilities, but not set up shop. Currently they just sell roasters and educate members of the industry
• Scale roasting for mass quantities and national sales to large entities of our The Distillery Channel Brands.
• The Distillery Channel Platform has over 10,000 members and growing, to which we can continue to grow and market to in the coming years.
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The Distillery Channel Coffee, LLC Lake Geneva, Wisconsin Model Projected Profit and Loss 2020 Monthly Budget Cost Items May June July August Sept Oct Nov Dec Rent $3 500 $3 500 $3 500 $3 500 $3 500 $3 500 $3 500 $3 500 Payroll $25 000 $25 000 $35 000 $35 000 $40 000 $45 000 $45 000 $45 000 Sales Commissions $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Utilities/Roasting Gas $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Telephone $600 $600 $600 $600 $600 $600 $600 $600 Advertising/Online/Boosts $5,000 $6,000 $6,000 $6,000 $7,000 $8,000 $8,000 $10,000 Insurance $800 $800 $800 $800 $800 $800 $800 $800 POS/Square $300 $300 $300 $300 $300 $300 $300 $300 Supplies/ Bags/Roaster $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Travel $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Entertainmant $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Leased Furn Fixtures $700 $700 $700 $700 $700 $700 $700 $700 Leased Autos $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Security $300 $300 $300 $300 $300 $300 $300 $300 Payroll Taxes $5,000 $5,000 $5,000 $5,000 $10,000 $15,000 $15,000 $15,000 Professional Services $400 $400 $400 $400 $400 $400 $400 $400 Contact Management $86 $86 $86 $86 $86 $86 $86 $86 Envato/ label Pics $21 $21 $21 $21 $21 $21 $21 $21 Switcher/ Communication $125 $125 $125 $125 $125 $125 $125 $125 Coffee Bags/ 4-16oz $3,000 $3,200 $4,000 $4,200 $5,000 $6,000 $6,000 $7,000 Coffee Beans $15,000 $17,000 $25,000 $30,000 $33,000 $40,000 $45,000 $48,000 Shipping $3,500 $4,000 $5,000 $7,000 $9,000 $10,000 $10,000 $11,000 Receiving $3 800 $4 500 $5 000 $6 000 $6 500 $7 200 $7 200 $7 200 com maintainance $200 $200 $200 $200 $200 $200 $200 $200 WebSite Maintainance $400 $400 $400 $400 $400 $400 $400 $400 WebStore Sales/mgmt $500 $1,000 $1,000 $1,200 $1,500 $1,500 $1,500 $1,500 Chef Dave Sales $250 $250 $250 $250 $250 $250 $250 $250 Advertising/Facebook $15 000 $15 000 $15 000 $3 000 $5 000 $15 000 $25 000 $10 000 $99,982 $104,882 $125,182 $121,582 $141,182 $171,882 $186,882 $178,882 $1,130,456 ($1,130,456) Sales Coffee Shop/Drive Thru $40 000 $40 000 $40 000 $40 000 $40 000 $40 000 $40 000 $40 000 $320 000 Inside Coffee Sales $30,000 $30,000 $30,000 $40,000 $50,000 $50,000 $60,000 $75,000 $365,000 Inside Marketing Sales $0 $0 $20,000 $25,000 $30,000 $30,000 $30,000 $30,000 $165,000 Online 5000 6000 7000 7000 7000 25000 20000 30000 $107,000 National Wholesale 22000 26000 29000 36000 40000 60000 60000 60000 333000 The Platform Private Lable 12000 14000 16000 19000 35000 40000 80000 80000 296000 $109 000 $116 000 $142 000 $167 000 $202 000 $245 000 $290 000 $315 000 Gross Income 1,586,000 $1,586,000 Net Profit $455,544