BUSINESS HIGHLIGHTS
The Company is a craft brewery and brewpub producing all beer in-house and operating a full-service kitchen and taproom. In operation 10+ years, the Company has established a strong local presence supported by high-quality crafted beer and a welcoming atmosphere. The Company benefits from a local customer base, complemented by out-of-town traffic. Its broad beer selection, integrated kitchen, and personalized service differentiate the Company within the regional craft beer market. With excess brewing capacity and a New Mexico license permitting additional satellite locations, the Company is well positioned for growth through expansion, distribution, and enhanced merchandising and events.
INVESTMENT APPEAL
• Diversified Customer Base: No single customer accounted for more than 2% of revenue during the historical period. The diversified customer base helps ensure that the Company will not be significantly impacted by the loss of a single account.
• Superior Name and Reputation: The Company enjoys a long-standing reputation for supplying quality products and superior customer support. A reflection of the Company’s reputation within the region is its approximate 60% rate of repeat customers.
• Strong Gross Profit Margins: The Company maintains consistently strong gross profit margins, supported by in-house beer production and a full-service kitchen. Even with a modest decline from 69.2% to 67.2%, margins remain high for a brewery of its size, providing a solid earnings foundation.
• Disciplined Expense Management: Variable expenses have remained stable in recent years following a single increase in 2022. Despite upward pressure across the historical period, these expenses are projected to hold steady at 36% of sales in the pro forma period, supporting predictable margins.
• Low Employee Turnover: The Company values its staff and their experiences, and that treatment is reflected in a low employee turnover rate. Customers appreciate having a staff that knows them and is familiar with them.
