Runestone Meadery Business Plan 2

Thomas Chemicals, LLC, an established chemical production facility co-owned by Timothy Tutt and Jessica (Tutt) McConnell, plans to diversify into mead production. The facility, equipped with 80% of the necessary meadery equipment, insured, and licensed for other chemical products, aims to utilize its existing staff for mead production, assigning them on a per-batch basis. Minor facility improvements are needed to comply with fire and health regulations. The LLC will expand by adding 3-4 new members to support this venture.

1. Successfully launch a mead production line within 6 months.
2. Produce and sell 500 bottles of mead per batch, targeting a minimum of 6 batches per year.
3. Achieve a break-even point within the first year of operation.
4. Establish a strong brand presence in the local and regional markets.

The demand for craft beverages, including mead, has seen significant growth in recent years. With an increasing trend towards artisanal and locally produced drinks, Thomas Chemicals Meadery can capitalize on this market by leveraging its existing resources and expertise.

• Target Market:
  • Craft beverage enthusiasts
  • Local and regional markets
  • Specialty liquor stores and gourmet food shops

Strengths:

• Existing facility and equipment reduce initial capital expenditure.
• Experienced staff and existing operational protocols.
• Established LLC with good financial standing.

Weaknesses:

• Need for compliance with fire and health regulations.
• Limited experience in the beverage industry.

Opportunities:

• Growing market for craft beverages.
• Potential for brand expansion and new product lines.

Threats:

• Regulatory hurdles specific to alcohol production.
• Market competition from established breweries and wineries.

1. Facility Improvements:

   • Conduct minor renovations to meet fire marshal and health inspector requirements.
   • Allocate a designated area within the facility for mead production.
2. Equipment and Resources:

   • Utilize existing equipment and purchase the remaining 20% of required equipment.
   • Ensure all equipment is compliant with mead production standards.
3. Production Process:

   • Assign existing staff to mead production on a per-batch basis, compensating them accordingly.
   • Follow a detailed production schedule to ensure consistent quality and output.
4. Regulatory Compliance:

   • Obtain necessary permits and approvals for mead production.
   • Ensure ongoing compliance with federal, state, and local regulations.

• Timothy Tutt (Co-owner): Overseeing operations and compliance.
• Jessica Tutt McConnell (Co-owner): Responsible for obtaining and managing all government permits and regulatory compliance, shared responsibility for marketing and public relations, shared responsibility for customer service, and human resources.
• Morgan McConnell: Sales and business plan development, financial management, shared responsibility for marketing and public relations.
• Anita Tutt: Treasurer, financial management, bookkeeping, shared responsibility for quality control, supply chain management.
• Joseph Tutt: Shared responsibility for quality control, shared responsibility for customer service.
• Chad Crow: Employee, production management.

1. Initial Investment:

   • Facility improvements: $10,000
   • Remaining equipment: $15,000
   • Regulatory fees and compliance: $5,000
   • Working capital for initial batches: $20,000
2. Revenue Projections:

   • Price per bottle: $25
   • Revenue per batch (500 bottles): $12,500
   • Annual revenue (6 batches): $75,000
3. Cost Projections:

   • Cost of goods sold (per batch): $7,530.80 (without back-sweetening) to $8,335.18 (with back-sweetening)
   • Total annual cost: $45,184.80 to $50,011.08
   • Net profit (annual): $29,815.20 to $24,988.92
4. Break-even Analysis:

   • Estimated break-even point within the first year based on current projections.

• Comprehensive market analysis supports the growing demand for craft beverages.
• Competitive analysis identifies key players and market gaps.
• Customer demographic data to tailor marketing strategies.

• Month 1-2: Facility improvements and compliance with regulations.
• Month 3: Finalize equipment setup and staff training.
• Month 4: Begin first batch production.
• Month 6: First batch ready for market.

• Develop a pricing model that includes wholesale and retail pricing.
• Utilize direct-to-consumer sales through online platforms.
• Establish relationships with local distributors and retailers.

• Provide comprehensive training for existing staff on mead production techniques.
• Implement quality control procedures to ensure product consistency.

1. Quality Control:
   • Implement strict quality control measures to ensure product consistency and safety.
2. Regulatory Risks:
   • Stay updated on regulatory changes and maintain compliance.
3. Market Risks:
   • Conduct regular market analysis to adapt to changing consumer preferences.

• Clarify the addition of new members and any changes to the LLC structure.
• Ensure legal compliance with partnership agreements and operational bylaws.

• Outline potential scenarios for selling the meadery, transferring ownership, or closing the business.
• Include financial implications and steps for each scenario.

1. Company Name and Brand Awareness:

   • Develop and enhance the Thomas Chemicals Meadery brand through targeted marketing campaigns.
   • Utilize social media platforms (Facebook, Instagram, Twitter) to create a strong online presence.
   • Engage with local communities through events, tastings, and sponsorships to build brand recognition.
2. Mead Product Line:

   • Create a diverse range of mead products to cater to different tastes and preferences.
   • Examples include traditional mead, fruit-infused mead (melomel), spiced mead (metheglin), and herbal mead (meddyglyn).
   • Highlight the unique selling points of each product, such as flavor profiles, aging process, and alcohol content.
3. Merchandising:

   • Develop a line of branded merchandise to complement the mead products, including:
     • Drinking horns and goblets
     • Branded T-shirts and apparel
     • Mead-making kits for enthusiasts
   • Offer merchandise both online and at local events to increase brand visibility and loyalty.
4. Batch Sizes and Production Details:

   • Standardize batch sizes to 500 bottles per batch to ensure consistent quality and supply.
   • Establish guidelines for aging different mead varieties, typically ranging from 6 months to 2 years, depending on the product.
   • Define the target alcohol content for each mead product, generally between 8% and 14%.
5. Strategic Partnerships and Distribution:

   • Develop partnerships with local liquor stores, gourmet shops, and restaurants to expand distribution channels.
   • Collaborate with local breweries and wineries for co-promotional events and cross-selling opportunities.
   • Explore opportunities to participate in local farmers' markets, craft fairs, and festivals to increase direct sales and brand exposure.

1. Digital Marketing:

   • Implement SEO strategies to improve website visibility on search engines.
   • Invest in targeted online ads to reach potential customers based on demographics and interests.
   • Create engaging content such as blog posts, videos, and tutorials about mead-making and the history of mead.
2. Traditional Marketing:

   • Utilize print media, such as local newspapers and magazines, to advertise new product launches and events.
   • Distribute flyers and posters in strategic locations to attract local customers.
3. Customer Engagement:

   • Develop a customer loyalty program to encourage repeat purchases and referrals.
   • Gather customer feedback through surveys and social media to continuously improve products and services.
4. Public Relations:

   • Send press releases to local media outlets to announce significant milestones, such as product launches or awards.
   • Host media events and provide samples to journalists and influencers to generate positive coverage.