Brewpub Chain In Costa Rica seeks investors for startup.

by Steve Kelly
(Quepos Costa Rica)

Executive Summary
Who We Are
Mayan Brewing CO is a brewpub that will be located in the Pacific Region of Costa Rica. Embracing a new business model, Mayan Brewing will possibly become the most sought out craft beer in the country. This concept emerged after being challenged with the task of finding a quality beer during my many visits to Costa Rica. In general, the selection of commercial and craft style beers in this country is very poor. This comes as a surprise given Costa Rica is the 4th most traveled to tourist destination in the Americas. The Mayan Brewing model satisfies three niches: selection, quality and location. Starting with the first of what will eventually be five brewpubs located along the Pacific coast. This brewpub will be located in Quepos the most visited beach destination in the country. Such a plan will target the highest concentration of tourists and expats in Costa Rica to deliver a variety of high quality craft brews to satisfy their needs. The idea behind the Mayan Brewing model is to provide Costa Rican tourists and expats with the selection and quality they are accustomed to, in places like the United States, by using professionally manufactured beer equipment operated by highly qualified and educated American brewers.
What We Sell
Mayan Brewing sells a United States style craft beer in Costa Rica. Moreover, by employing educated and highly trained brewers from the U.S, who will be using raw materials from the U.S., and by marketing in tourist and expat focused regions, Mayan Brewing will become the leading craft brewer of Costa Rica. First, Mayan Brewing will be a provider of the highest quality craft beer in Costa Rica by purchasing raw materials from some of the leading suppliers in the United States such as: Briess Malting, Hopunion, and Wyeast. Next, Mayan Brewing will only hire brew masters that have been educated and trained in the United States. For the first brewpub in Quepos we have already solicited a brew master willing to relocate to Costa Rica to work for Mayan Brewing. He was educated at Seibel Beer Institute and has been brewing for 5 years. Further, the Quepos brewpub will embrace the “brewing in the open” model used commonly in American brewpubs. The brewpub will also market craft beer selection in providing customers with twelve different beer styles all available on tap. These styles draw on consumer familiarity with beers such as Bells, Two Hearted which is an American IPA. For example Mayan Brewing will have Apocalypse an American IPA, Triple Ice Cream, which is a chocolate, vanilla, and strawberry stout and a beer called Deception, a Scottish ale with 10% alcohol. Overall this market strategy places Mayan Brewing’s products at an advantage over the other breweries here in Costa Rica in that Mayan Brewing provides tourist and expat consumers with craft beer that they are accustomed to drinking, in a familiar brew pub setting—but located in a tropical paradise. In other words, Mayan Brewing Company’s design targets consumer familiarity in delivering the American brewpub concept to the hottest beach destinations of Costa Rica.
Who We Sell To
According to the American Brewers Association it takes 150,000 potential customers for each microbrewery to be successful in a single demographic. To begin, Mayan Brewing will have a brewpub in Quepos and would only need 150,000 total customers for success. The Manuel Antonio/Quepos area, the proposed home base of Mayan Brewing, has over 800,000 visitors annually and is the number one tourist destination in all of Central America. The other four locations chosen for future brewpubs are Tamarindo, Jaco, Puntarenas, and Dominical and are all part of the top ten tourist destinations of Costa Rica. Top tourist destinations also espouse an expat population who own and operate other businesses in those areas. This expat consumer base will offer a steady flow of business during the low season. In 2013, Costa Rica had 2.4 million tourists and 1.5 million expats living in the country. That is approximately 2.5 million potential adult customers of drinking age who have a taste for American style craft beer. This does not include the 3 million Costa Ricans’ who are of drinking age and are beginning to acquire a taste for something different. For example, the 3rd annual Craft Beer Festival took place in Escazu this year, 2014, in one of the wealthier suburbs of San Jose. Over 3,000 people attended most of who were Costa Ricans. This illustrates the ripe market in the cultural hub of San Jose, the capital city of Costa Rica. Finally, social media, beer organizations, tourist websites and tour operators will all be targeted to reach our customers. This approach offers high impact low cost advertising. This marketing strategy will ensure the tourists and expats of Costa Rica are aware of where to purchase Mayan Brewing Products.
Financial Summary
The projected goal of the first year would be to brew and sell 400 to 500 brewers barrels. On a 500 liter brew house with 6-1000 liter fermentation vessels this would be 3 to 4 turns per week. According to The American Brewer’s Association, most brewpubs do 3 to 5 turns per week. The overall cost per pint glass would be one dollar to produce. 400 barrels of beer is 99,200 pints at $6 each or $595,200 minus the production costs of $99,200 ends up to be $496,000 annually. The startup cost of the Quepos brewpub will be $400,000 which also includes the cost for the office and storage setup as well.

These projections are based on two established businesses. One was a conversation with the brew master at the only brewpub in Costa Rica located in Tamarindo. He stated they brew double batches on their three barrel system three days a week. That comes to 936 brewers barrels annually or 1.3 million dollars of beer at one location. That is over double the projection rate, keeping in mind that Tamarindo is the third most popular location chosen for one of the future five brewpubs. The other came from a small deli in one of the up and coming beach locations in Costa Rica. This deli sells craft beer for lunch only and is only open 25 hours a week. The deli owner stated that he sells about 85 barrels a year at 6 dollars a pint. These projections for year one are low given the brewpub in Quepos will be open six days a week at a minimum of 72 hours, similar to the brewpub in Tamarindo. Further, the brewpub will be open for dinner hours when beer consumption is the highest.

The third year has three goals: 1) Expand and set up four more brewpubs in Costa Rica to meet the growing demand for Mayan Brewing products; 2) analyze the consumer market for the potential addition of 3 to 5 more brewpubs to meet the growing demand for Mayan Products;3) brew a minimum of 500 barrels at each of the five Brewpubs. Although a 100% profit is set to be achieved in year one, year three has projected a large expansion and could turn a 200% profit placing Mayan Brewing Company on the road to growth and prosperity.

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