sed to $.55/lb). The beer is also brewed in the old German Reinheitsgebot tradition. GGB has a market niche. They target the beer aficionados, one who knows how to distinguish a well made beer from an average to below average beer. Distribution. Because of GGB's size a door to door distribution campaign is used. GGB solicits to restaurants, bar owners, and liquor stores. Their market coverage consists of the San Francisco area and Munich, Germany. The following is a projected 5 year forcast. Assuming all things remain equal.19851986198719881989(A) Sales @.20 inc.408,000489,600587,520705,024846,028(B) Cost of goods sold273,000321,300385,560462,672555,206 Gross Margin135,000168,300201,960242,352290,822Less:(C) Shipping84021,84021,84021,84021,840(D) Salaries101,003106,053111,355116,922122,768 Rent4,8004,8004,8004,8004,800(E) Truck lease20,80024,96029,95235,49243,130(F) Marketing/Promotion 55,0002,0003,0004,0005,000(G) Repairs1,0001,0501,1021,1571,215 Depreciation7,5007,5007,5007,5007,500(H) Other9,0579,5099,98410,48311,007Net Income(65,000)(9,412)12,42739,70873,562(A) 20% 1 year increase(B) $10.50 per case(C) 1986, 70 cases x 24 bottles x 5 = 8400 bottles per week x 52 weeks = 436,800 x .05 = 21840 *lower cost per bottle due to larger shipments.(D) 5% year increase(E) 20% 1 Year increase(F) No Advertising(G) 5% year increase(H) 5% year increaseSWOT ANALYSISStrengths- low overhead, well thought of by buyers, expertise in brewing, fifth generation brewer, Cook's education, Crowned best beer in America, Penetration into a German market, access to financing looks favorable.Weaknesses- After six months of operation, still in the red. High costs of truck leasing, high initial cost of advertising, distribution extremely weak, costs more to brew than imports, narrow product line.Opportunities- Pending affiliations with large distribution network, continued expansion in Europe, possible purchase of abandoned bre...
