Oregon Trail Brewpub Tours

Marketing Plan
 Who are we?
Oregon Trail Brewpub Tours is a tour
company with a mission to provide
brewpub tours in an ecologically friendly
manner and to help promote craft
brewing and local sustainable economies.
Market Demands and Opportunities
Oregon Trail is the only exclusive brewpub tour company in
the Oregon Region and most of the west.
Total Craft Beer Sales in 2006 $5 billion
The Craft brewing industry has grown 12% over other
brewing segments in the US in 2007
Oregon State earns over $2.7 billion annually from the tourism
industry
Projected .5% of overall market $18,500,000 annually
Opportunities for future expansion to other regions
 Management Team
Founder and CEO

Aaron Hill (MBA)

To Be Determined:

Marketing Director Tour Guide

 Competitors
The major competitors is
the Oregon state wine
industry and winery tours

Additional competitors are

other available activities of
the region (Mountains,
Oceans, Professional Sports,
etc.)
 Business Model & Target Market
Limited Liability Corporation (LLC)

Target Market is
Local foodies and Craft beer aficionados
Tourists (local & regional)
Portland area event planners
 Partnerships and Associations
Partnering with local Portland area and Oregon State Craft Breweries
Membership in the Oregon Brewers Guild
Membership in S.N.O.B. (Support Native Oregon Beer)
Membership in the Brewers Association
Partnering with the North American Organic Brewers Festival and other
Community
Membership in Travel Oregon
 5 Year Financial Outlook
Oregon Trail Brewpub Tours
Income Statement ($)
2011 2012 2013 2014 2015
Total Revenue $162,500 $286,000 $325,500 $353,000 $403,500
Total Operating Expenses $184,797 $239,711 $254,509 $267,908 $285,060
% of Revenue 114% 84% 78% 76% 71%
Income Before Int. & Taxes ($22,297) $46,289 $70,991 $85,092 $118,440
% of Revenue 14% 16% 22% 24% 29%
Net Income ($27,953) $20,307 $32,111 $39,974 $59,185
% of Revenue -17% 7% 10% 11% 15%

$403,500 of Revenue; $ 285,060 of Expenses; $59,185 Net Income; 15% of

Revenue
Break-even point at May 2012
Staff Headcount 3
$450,000
Forecasted Revenue & Income
$400,000

$350,000 Break Even

May ‘12
$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
2011 2012 2013 2014 2015
-$50,000

Revenue Net Income

Capital Injection
January ‘11
 Capitalization

Capitalization is need for the following:

$60,000 of the investors “fermented” capital

Capital Required to maintain positive cash flow in
Year 1 ($47,600)
Angel Investors who have an appreciation for locally
made Craft Beer
 Securities Structuring
Preferred Stock Paid in Kind
Anti-dilution (priced based – weighted average anti-dilution)
Liquidation – simple preference (original value + dividends)
Dividends – cumulative annual dividends at 7% of par when declared by
board
Redemption (investor right with: 2/3 vote of preferred holders, 1/3 @ year
5, 1/3 @ year 6, 1/3 @ year 7; price $.78; 2X original purchase price +
dividends
Control (voting – can elect one representative to board
Protective Provision – 2/3 majority of preferred necessary for certain
actions
 Available Options
Preferred Stock Paid in Kind

American-style call option

Right to purchase more stock at original purchase price for 2
years (capped at 2X initial price and limited to 49% total)
 The Offer for Investors
Pre-Money Valuation $77,565
New Money Investment $60,000
Post Money Valuation $137,565
Investors % Ownership 44%
Investors Total Shares 77,355
Shares Outstanding 100,000
Price Per Share $.78
Total Diluted Shares 177,355
 Summary of the Deal
$60,000 - preferred equity investment

Angel investors with an interest in the local craft brewing

industry
Price per share = $ .78
Shares investor would own = 77,355
44% Investor ownership
Cumulative annual dividends at 7% of par
Weighted average anti-dilution
Oregon Trail Brewpub Tours

Thank you for your time