Kenosha Brewing Company
Craft Beer for Craft’s Sake.
General Information and Management Section:
Licensed and Trademark States: Wisconsin, Illinois
Chris and Nick Gochis – Experienced restaurateurs with successful track records of starting and selling concepts. The Gochis’s grew-up in the restaurant industry and have owned and operated restaurants and bars for over 15 years.
Mike Roscioli – Previously a partner at Golden Harvest Distributing, a craft beer, wine and liquor distribution business. Roscioli grew-up in the beverage industry, working for the local Miller and Budweiser distributors.
There is a significant increase in the popularity of craft beers. Kenosha Brewing Company, LLC (“KBC”) is in the process of converting an existing, profitable restaurant/tavern back into a brewpub, which it formerly was, in order to take advantage of craft beer popularity. There is not a brewpub within a 40 mile radius of the location. There are two taprooms (brewhouses that do not serve food) in the area that have received mediocre reviews on yelp.com for their beer quality, lack of food, and bad hours. We believe that consumer are more-likely to purchase additional beers the longer they patron a restaurant or bar. We will act on this belief by offering a full-service kitchen, top-rated beers, and entertainment that will keep patrons in their seats, ordering more products.
Once the brand is established, KBC intends on creating a full line of beer and using existing distribution relationships in Wisconsin and other states to expand its footprint.
Potential Long-Term options:
After the brand and brewpub are established, KBC would evaluate the increased production alternatives: 1. Use an outside contract manufacturer to produce the beer; or 2. Expand the brewing operations into a larger distribution center with a taproom. The difference between a taproom and a brewpub is a taproom does not serve food whereas a brewpub is a full-service restaurant that serves its own beer.
Initial product offering:
Four regular brews: Blonde (until we start producing Lagers), Porter, Saison (farmhouse ale), and an IPA, Pale Ale or Session beer.
- We expect to produce two limited time offer (LTO) starting within the first six months. This may include seasonal beers, for example an Oktoberfest release or a strawberry brew for the summer.
*Future production may include: Imperial Porter, Imperial Stout, Stout, Rye Ale, Red Ale, Belgium Brune, Tripel, Quadruppal, Black IPA, Double Pale Ale, Double IPA, Pilsner, Ciders, fruit ales, and other lagers and ales.
We will utilize a local contract manufacturer to produce our initial beer offerings. This will enable us to test our beer against other beers on tap at the Bull and Bear and other Gochis-owned restaurants.
Branding and marketing:
We are a marketing company that produces beer. The most important activity in building a beer brand is sampling our products. Initially consumers will pay to sample our beer and then commit to larger purchases, i.e. growlers, jug-like containers used to transport beer.
While the national market continues to add more entrants, Wisconsin, which is the fifth-highest beer consuming state in the country (Marketwatch.com, 2013), still has significant opportunity for new craft beers. Since branding and marketing are crucial, KBC has the additional benefit of being in southeast Wisconsin – an untapped region with a population of approximately 400,000 people (sewrpc.org 2013). The Company will appeal to locavores as well as to those out-of-state consumers who believe that quality beer comes from Wisconsin. KBC will exhibit at the two major annual Racine beer festivals. We plan to collaborate with other manufacturers, such as Snap-On or Weber Grills, to offer our beer at their showings.
- Headquartered in Kenosha, WI, the existing property, located approximately 5 miles east of Interstate 94 off of Highway 50, a major exit on the route between Milwaukee and Chicago. Southeast Wisconsin and Kenosha County hosts several bedroom communities that are underserviced craft beer markets and no existing brewpub.
- The building was built in 1902 as a monastery and barn, where it is believed that the monks brewed beer.
- The existing property was the site of the first brewpub in the Midwest, then known as Brewmasters. We met with the former owner of Brewmasters, who explained to us that Brewmasters ultimately went under after twenty years due to poor management decisions.
- The building was a popular haunt of deceased renowned beer authority, Michael Jackson.
- Wisconsin brewing guilds, such as the Kenosha Bidal Society, used to hold meetings and craft beer festivals at what is now our venue. KBC hopes to revive this tradition.
- The KBC grounds enable the Company to host many events. i.e. fish fry’s, Oktoberfest, etc.
- Demographics for the area are strong. There are many large corporate manufacturing and distribution centers within a 10 mile radius with more planned, i.e. Google, Meijer, and Gordon Foods. In addition to gaining new patrons, there is the possibility that we can sell our beer into these corporate prospects.
Craft beer represented approximately 6.5% of beer volume in 2012. In comparison, “The Big Two”, MillerCoors and Anheuser-Busch, combined to represent 74% of the market by volume (Huffington Post, 2013).
There are approximately 2,500 craft breweries the United States with more deliverables scheduled (Brewers Association). There are two taprooms and nobrewpubs in Kenosha.
In 2012, craft increased 13.7% to reach 185.2 million 2.25-gallon cases. This is the largest increase for Craft beer in more than a decade (Beverage Information Group, 2013).
KBC will initially operate as a brewpub, with the ability to grow into a microbrewery. A microbrewery is a brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75% or more of its beer sold off-site; whereas, a brewpub is a restaurant-brewery that sells 25% or more of its beer on site. The beer is brewed primarily for sale in the restaurant and bar (brewersassociation.org).
Ultimately the focus will transition into being a direct competitor of New Glarus Brewing (newglarusbrewing.com) based in New Glarus, WI. New Glarus Brewing markets itself as the Wisconsin beer sold only in Wisconsin. In addition to the opportunity of benefitting from the competitive position, the Company will also promote being the local beer exported from Wisconsin.