Rustik Brü Business Proposal 10bbl

A Microbrewery
Rustik Br Brewing Company, Inc.
Get Back to Simple
C. Bryce Capodieci
135 E Hillview Dr.
Morgantown, WV. 26508
Rustik Br Brewing Company, Inc. 1
Business Plan
Table of Contents
EXECUTIVE SUMMARY ......................................................................................................... 2
DESCRIPTION OF BUSINESS ................................................................................................. 4
INDUSTRIAL DESCRIPTION .................................................................................................. 8
DISTRIBUTION ....................................................................................................................... 12
LOCATION INFORMATION .................................................................................................. 14
DESCRIPTION OF PRODUCTS/SERVICES ......................................................................... 14
CONSULTANTS/ATTORNEY INFORMATION ................................................................... 16
MANAGEMENT AND OPERATION PLAN .......................................................................... 18
Development Process ......................................................................................................... 18
Division of Time Number of Days per month ................................................................ 18
Production Process ............................................................................................................. 21
Production .......................................................................................................................... 21
Physical Brewery ............................................................................................................... 22
Equipment .......................................................................................................................... 24
Special requirements .......................................................................................................... 25
Materials ............................................................................................................................ 25
Inventory ............................................................................................................................ 25
Feasibility........................................................................................................................... 26
MARKETING/ADVERTISING PLAN .................................................................................... 27
CUSTOMER PROFILE ............................................................................................................ 29
COMPETITION ........................................................................................................................ 29
FINANCIAL PLAN .................................................................................................................. 30
Startup Cost Analysis......................................................................................................... 31
Revenue Projection ............................................................................................................ 33
Break Even Analysis .......................................................................................................... 34
Cash Flow Analysis ........................................................................................................... 35
PRODUCTION AND GROWTH ............................................................................................. 37
Rustik Br Five Year Barrel Production............................................................................ 38
Five Year Projected Growth Brewery Comparison ........................................................... 39
Customer Accounts ............................................................................................................ 42
RISK AND EXIT PLAN ........................................................................................................... 43
APPENDIX A - Rsum............................................................................................................ 44
APPENDIX B - Financial Plan.................................................................................................. 41
APPENDIX C - Demographics ................................................................................................. 41
APPENDIX D Marketing offerings, Associations & References .......................................... 43
APPENDIX E Legal, License & Tax Research ...................................................................... 43
APPENDIX F Articles of Operation ...................................................................................... 44
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EXECUTIVE SUMMARY
Rustik Br Brewing Company, Inc. is a new 10 barrel (bbl) distribution brewery located in
Morgantown, WV. With a focus to create simple and enjoyable craft beer, our initial craft beer
portfolio will include two ales: Auld Adage Ale and Black Forge Ale. As the business grows
and brand recognition increases, we will expand the brewing capacity and the number of ales
in our brewing arsenal. Rustik Br is scheduled to begin operations by the end 2013.
Morgantown, along with north-central West Virginia, is a diverse cultural community with
a growing appetite for finer food and beverages. With the rise of craft beer appreciation in
West Virginia, the success of new beer opportunities proves that West Virginia is eager to try
new and better beer. The craft beer culture is improving in West Virginia, but compared to
many other states, West Virginia is still lagging behind in the number of locally crafted beers.
Rustik Br will solve this void by providing locally crafted ales to bars, clubs, taverns,
pubs and restaurants within Morgantown and branch out systematically through self-
distribution. We have letters of intent from several local businesses promising to sell Rustik
Br beers once they become available.
The opportunity we have is to capitalize on an emerging market where there are only a few
local breweries. We have high quality craft beers that will quench the thirst of craft beer
enthusiasts and pique the interest of everyone else.
To develop a competitive edge in the West Virginia microbrewery market, Rustik Br will
brew quality beers at all times. We realize the importance of working with our customers to
ensure our beer is stored and served in the best quality possible. In addition to quality control
measures, Rustik Br will keep our customers intrigued by providing seasonal beers, small
batch series beers, and new releases based on classic styles, but with our own interpretations.
The bulk of our business comes from kegged beer sales. New beers will be launched in
pairs at about one year intervals with seasonal beers to fill in the gaps. The approach of
launching two beers simultaneously helps to ensure we are reaching customers with different
style preferences at the same time. The logistics behind launching two beers at the same time is
not much more different or more costly as launching one beer. The key to our initial growth is
self-distribution.
Growing up in the family restaurant business and working as an electrical engineer for 12
years, CEO/President and Head Brewer Bryce Capodieci has the organizational and technical
experience to make this business a success. These skills include: quality control and critical
path management. With 14 years of homebrewing experience, Bryce is teaming up with
assistant brewery Luke Smith who has 17 years of homebrewing experience.
Our financial projections show a conservative, yet steady growth year over year where
investors can potentially begin to see a return on their investment by the 4th year of operation.
Capital reinvestment will occur continuously to grow the business. 1/6th barrel keg sales will be
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bulk of our sales until we can build up capital to contract or purchase a bottling line. Self-
distribution is the key to maintaining profitability until we grow large enough where scale of
production will offset the 25% loss of profit margin that is expected when using distributors.
Many businesses fail due to poor management, poor product quality and under-
capitalization. We have the skills and resources to maintain proper management, we have the
determination to maintain high quality craft beers, and we have done our homework to ensure
we are not undercapitalized. Our break-even analysis reports that it will take three years before
we realize a profit. In order to cover the start-up costs and cash flow for three years, we need to
raise $400,000. The following chart displays the net sales (along with investor dividends and
employee incentive bonuses) after taxes for the first five years of operations.
Figure 1 Total Net Profit after tax plus investor dividends.
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MISSION STATEMENT
Spend the time to educate what quality craft beer is in its entirety; then deliver high quality,
full flavored craft beer, every time.
DESCRIPTION OF BUSINESS
Rustik Br Brewing Company, Inc. is a unique company in that its goal is to not only
reinvent simple and full flavored craft brewed beer, but to create a sense of community through
craft brewing education, innovation, activities/festivals and community ownership. To help
guarantee our success, Rustik Br Brewing Company is creating a business in several small
stages to help ensure our position within the market place. We have many high quality craft
beers that are and will be well received in the market place. Our priority is to maintain the
highest quality in our beers.
The legal purpose of this business is to primarily brew superior craft beer. Other facets of
the business are to participate in any lawful business common to the brewing industry. Such
business interactions include but are not limited to, the sale of brewery merchandise, brewing
business education through classes and seminars, brewery tours, the retail sale of brewing
supplies for the home brewing population, books and beer distribution.
Roadmap
Rustik Br Brewing Company, a West Virginia C-Corporation is located and

headquartered in Morgantown, WV. This is a startup brewing company. We are scheduled to
open for business by Spring of 2014. The company is owned and operated by CEO/President
and founder Bryce Capodieci. Bryce is the head brewer with 14 years of home brewing
experience. Backed by years of family owned restaurant experience, Bryce has hands-on
experience with managing daily business operations. With 12 years in the electrical
engineering field managing global design teams for multi-million dollar projects, Bryce has the
leadership and organization skills for success. Deep seeded passion for brewing,
experimentation with beer recipes and brewing education is the fuel that keeps the fire burning
with Rustik Br.
Our intention is to start small. The initial brewing capacity for Rustik Br is 10 barrels
(bbl.) for each batch brewed with a monthly brewing capacity of about 40 bbls. We have
several local bars and restaurants that have pledged customer support once the brewery begins
operation. The number of initial customers that must be obtained to meet our projections will
total 19 accounts. We estimate that each account will serve between 2-4 kegs each month. This
estimate will help us to maintain inventory while expanding our customer base at a minimum
of 6% each month. This equates to at least two new accounts every month. This process is
meant to maintain stocked supply chains and to maintain quality product, while we
methodically grow our business. It is important that customer satisfaction is always held to a
high standard. We are selling a higher quality product, at a higher price, in lower quantity
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batches. Once we have a strong understanding of the demand for our products and we can
maintain a consistent supply chain, then we will expand our business to new markets.
In these small batches, the quality of the beer is easily maintained and monitored. The risk
of loss due to inferior quality beer from contamination, the use of stale ingredients is
eliminated, and less space is required to maintain operations and storage of raw materials and
final product.
The two initial brands Rustik Br will release are Auld Adage Ale and Black Forge
Ale. The description of these two beers can be found in section: DESCRIPTION OF
PRODUCTS/SERVICES
To create a marketing buzz that surrounds the mystique of Rustik Br, several approaches
have been implemented. The intent of creating this buzz about the business was to give Rustik
Br a running start once it does open its doors to the public.
The first marketing tool used from the marketing tool box was to create a Rustik Br
Brewing Company Blog. The web address is http://rustikbru.wordpress.com/. This blog
provides tips and hints about the brewing industry that can be used for both home brewers and
professional brewers. This blog is also a source of news for the creation and progress of the
Rustik Br business as an emerging company. The intent here is to help others learn and
possibly realize their dreams in opening a small brewery as well. The number of visitors to the
blog is tracked daily via an embedded tracking tool from wordpress.com. Other indirect
sources come from comments posted to individual articles or verbal feedback from readers.
Facebook is a marketing tool that utilizes viral advertising and social networking to create a
buzz about the company. Facebook is one of the most used and popular websites of the
internet. By posting activities and news on Facebook, we create an interest and following for
the company that helps to build our community culture. The web address for the Facebook
page is: http://www.facebook.com/pages/Rustik-Br%C3%BC-Brewing-Company-
LLC/244024128956269. Facebook provides a tracking tool called Insights. This valuable tool
helps us track the number of visitors the site attracts and how many people worldwide are
possibly exposed to this website via social networking. The results are tracked weekly.
The official website for Rustik Br is www.rustikbru.com. Here we receive visitors who
are now searching on Google for our business. Initially, the website provides the basics about
the company and what beer will be released. The website offers Rustik Br clothing and hand-
crafted leather mugs. Other products will be sold as our business grows. The website will be a
resource for various brewing information. We will provide brewing articles from the Rustik
Br blog, a calendar of events to keep our brewing community involved in our activities and
processes, a beer finder page to locate the various businesses where our beer can be purchased,
and free downloadable software/spreadsheet that will aid home brewers with their brewing
systems. We hope to impart and share much of our technical knowledge in brewing to the
public and to maintain a continuous learning community.
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Another valuable tool we will use to promote our business is a self-published eBook that
details how a homebrewer can take the next step to becoming a professional brewer. Each step
in the business development process will be well detailed. This effort is important to share the
knowledge Rustik Br gains so other future brewers can follow in our footsteps in creating a
small scale brewery like ours. We hope to increase the brewing culture by sharing our
knowledge. From a revenue standpoint, this will be a residual source of income.
There are no immediate plans for large scale bottling of our beer. Although this limits our
exposure to costumers, the cost of a bottling system is far too great for our startup company.
The capital cost, maintenance costs and labor costs associated with bottling outweigh the
benefits and potential revenue initially. Once Rustik Br is a well-recognized brand name, then
we will make the investment into bottling to reach more customers and be able to gain a better
profit margin on the beer. We do plan to hand bottle small batches of beer in 22 ounce bottles.
These are meant for restaurants or boutique wine/beer shops that do not have draft beer.
The distribution brewery building will be modular in construction to allow for future
growth. This facility will be the location of the corporate business office as well. The factors
that will determine the actual location of the distribution brewery are: ease of access from
major highways for distribution, property taxes and commercial zoning laws. We are looking
for land owners that will build to suit.
We plan to capitalize on an under developed niche marketing idea where craft beer can be
brewed for restaurants and bars where they will maintain the naming rights of the beer. We can
either collaborate together on a recipe, or sell them a recipe from our recipe arsenal. As an
example, Big Johns Bar and Grille wants to sell his own Oatmeal Stout. Since they dont brew
their own beer, Rustik Br will brew this oatmeal stout to be served solely at Big Johns Bar
and Grille. It could be called, Big Johns Oatmeal Stout.
Contract brewing is not meant to be a direction of the company, merely an option to

consider if we should reach maximum capacity before we are able to expand. There are
components of contract brewing that need to be considered. Many of the cost issues involved
cannot be accurately determined until negotiations have been completed, but estimations can
be made. For now, we will consider that the costs of contract brewing will possibly involve the
following:
Cost of using/renting brewing equipment

Cost of storage (storing beer with contractor)
Cost of ordering ingredients (low volume orders)
Cost of storing ingredients (storage costs).
As a successful business, we want to be a part of intelligent and responsible business that is

green and helps drive local economic growth. We have a plan that will help us maintain
sustainable growth while being a concerned company for the environment and the local
community.
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WATER STEWARDSHIP:
Water is an invaluable resource used in our brewing and cleaning process. We are
committed to protecting this invaluable resource in our brewery operations. With intelligent
processes in place, we hope to minimize waste water and to promote water conservation.
WASTE AS AN OPPORTUNITY:
Our brewing process byproducts are not wastes to dispose of, but resources with a
beneficial reuse. We use spent grain as a soil amendment, healthy dog biscuits and feed for
local livestock. Any waste that can be recycled will be properly recycled. Such products
include paper and plastics.
ENERGY EFFICIENCY & RENEWABLES:

We strive to be leaders in the craft industry by reducing energy usage and using renewable
energy throughout our brewery. We have plans to install solar panels and urban wind mills to
help supplement our energy need. All lighting will be controlled by timed motion sensors. If no
one is using a room, the lights will turn off automatically. We plan to regularly conduct a series
of energy audits to constantly reduce our companys energy usage. Rain water will be
collected, treated and used for cleaning where possible.
EMPLOYEE ENGAGEMENT:
We know that our employees shape us as a company, so weve created a fun and
collaborative culture using our own employees best ideas for improvements and growth and
extend decision making power to all levels. We believe that rewarding our employees
financially for such contributions.
GIVING BACK:
We also support and hope to increase public awareness of the arts, culture, charities and
environment through company involvement and/or monetary donations to organizations related
to or involved in these organizations. We plan to select a beer each month where a percentage
of that beer sold will be donated to a different charity each month. We hope to get local
community involvement in helping to choose which charities to support. Our goal is to support
local charities first, but regional, national and even global charities will be supported.
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INDUSTRIAL DESCRIPTION
Brewers Association Reports 2011 Mid-Year Growth for U.S. Craft Brewers
- Dollar growth up 15% in first six months of 2011; U.S. sees rapid growth in breweries in
planning
Boulder, CO -- August 8, 2011 - The Brewers Association, the trade association

representing the majority of U.S. brewing companies, has released strong mid-year numbers
for America's small and independent craft brewers(1). Dollar sales were up 15 percent in the
first half of 2011, excluding brewers who left the craft segment in 2010(2). Volume of craft
brewed beer sold grew 14 percent for the first six months in 2011, compared to 9 percent
growth in the first half of 2010.
Barrels sold by craft brewers for the first half of the year are an estimated 5.1 million
barrels. Despite many challenges, the mid-year numbers show signs of continued growth for
craft breweries. The industry currently provides an estimated 100,000 jobs, contributing
significantly to the U.S. economy.
"Craft brewers continue to innovate and brew beers of excellent quality," noted Paul Gatza,
director of the Brewers Association. "America's beer drinkers are rapidly switching to craft
because of the variety of flavors they are discovering. And they are connecting with small and
independent craft brewers as companies they choose to support."
Figure 2 Breweries in planning
The U.S. now boasts 1,790 breweriesan increase of 165 additional breweries since June
2010. The Brewers Association also tracks breweries in planning as an indicator of potential
new entrants into the craft category, and lists 725 breweries in planning today compared to 389
a year ago. Additionally, the count of craft brewers was at 1,740 as of June 30, 2011.
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"There is a growing interest in establishing new breweries," Gatza added. "It seems like
every day we are hearing about a brewery in planning. Will they all make it? No, but many will
if they produce high-quality, interesting craft beers and can get them to market through self-
distribution and beer wholesalers and beer retailers."
(1) The definition of a craft brewer as stated by the Brewers Association: An American
craft brewer is small, independent, and traditional. Small: Annual production of beer less than
6 million barrels. Beer production is attributed to a brewer according to the rules of alternating
proprietorships. Flavored malt beverages are not considered beer for purposes of this
definition. Independent: Less than 25% of the craft brewery is owned or controlled (or
equivalent economic interest) by an alcoholic beverage industry member who is not themselves
a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which
represents the greatest volume among that brewers brands) or has at least 50% of its volume in
either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.
(2) Three former craft brewing companies left the segment in the second half of 2010 when
transitions led them to no longer meet the Brewers Association's definition of independence.
Industry facts:
1970s saw a rebirth in craft brewing and a huge increase in home-brewing for hobbyists.
1980s micro-breweries and brewpubs start appearing in the industry to provide niche
brewing for people who wanted more flavor from their beer.
1990s gave beer aficionados and beer enthusiasts vast opportunities for full flavored beer
of many styles of beer with the explosion of the craft brewing industry.
An outside client pays to have their products brewed by a traditional brewery that has the
free capacity for hire, or at least is looking for another stream of revenue.
Growth of the craft brewing industry in 2009 was 7.2% by volume and 10.3% by dollars
compared to growth in 2008 of 5.9% by volume and 10.1% by dollars.
Craft brewers sold an estimated 9,115,635 barrels* of beer in 2009, up from 8,501,713 in
2008.
Overall, US beer sales were down 2.2% in 2009.
Imported beer sales were down 9.8% in 2009, equating to a loss of 2.8 million barrels.
The craft brewing sales share in 2009 was 4.3% by volume and 6.9% by dollars.
Craft brewer retail dollar value in 2009 was an estimated $6.98 billion, up from $6.32
billion in 2008.
1,595 breweries operated for some or all of 2009, the highest total since before Prohibition.
There are three key elements to producing a successful contract brew: a proven, well-
balanced recipe; a skilled, quality-conscious brewery; and outstanding packaging.
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Figure 3 Beer is the #3 Beverage Category in the U.S.
Figure 4 Craft beer has the highest growth margin.
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Figure 5 Craft beer segment is the pricing leader in the beer industry.
Figure 6 Retailers pay more attention to craft beer
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DISTRIBUTION
Rustik Br beers will be self-distributed throughout Monongalia, Marion and Harrison
Counties. Once Rustik Br expands beyond these markets, regional distributors will be selected to
carry our beer. The following is a list of State licensed distributors:
The American Beer Company

HC 71, Box 152-A
Meadow Bluff, WV 24977
(304)392-6311
wwhitt@frontiernet.net
McDowell, Mercer, Summers, Monroe, Greenbrier, Nicholas
Atomic Distributing
435 Seventh Ave.
Huntington, WV 25701
(304)523-7866
rphipps@atomicdist.com
vphipps@atomicdist.com
Cabell, Wayne, Lincoln, Mason, Jackson, Portion of Putnam
Beverage Distributors
PO Box 866
Clarksburg, WV 26301
(304)624-4261
bevdist@beveragewv.com
Webster, Braxton, Gilmer, Lewis, Doddridge, Harrison, Taylor, Portion of Barbour
Blue Ridge Beverage

PO Box 864
Morgantown, WV 26507-9864
(304)292-1130
bluerdg@comcast.net
Monongalia, Preston
Carenbauer Distributing Company

1900 Jacob Street
Wheeling, WV 26003
(304)232-3000
ccarenbauer@verizon.net
Ohio and Portion of Marshall
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Capitol Beverage Company

60 Pilsner Place
Charleston, WV 25312
(304)720-1425
smcvey@capitolbev.com
Kanawha, Clay, Fayette, Raleigh, Nicholas, Greenbrier, Summers, Monroe, Putnam, Mason,
Jackson, Roane, Calhoun, Wirt, Wood, Ritchie, Pleasants, Tyler, Wetzel, Portions of Marshall,
Boone, Braxton, Webster, Logan & Mingo
Corley Distributing
2 W. Whitestick St., Box 86
Mabscott, WV 25871
(304)252-4561
corleydi@wvdsl.net
corleysv@wvdls.net
Fayette, Greenbrier, Monroe, Raleigh, Summers, Wyoming
Eagle Distributing
PO Box 7666
Huntington, WV 25778
(304)522-7371
chill@eaglewv.com
Cabell, Wayne, Lincoln
Elkins Distributing Company

P.O. B550
Elkins, WV 26241
(304)636-3643
crystal@elkinsdistributing.com
Randolph, Pocahontas, Upshur, Tucker, Portion of Barbour
JC Distributing
501 Wilson Lane, Suite 2
Elkins, WV 26241
(304)637-6600
jcdistributing_07@verizon.net
Barbour, Grant, Hardy, Hampshire, Mineral, Pendleton, Pocahontas, Randolph, Tucker,
Upshur and Webster
J.C. Mensore
134 North Bridge Street
New Martinsville, WV 26155
(304)455-1890
Wsl54761@suddenlinkmail.com
Tyler, Wetzel, Portion of Marshall
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As mentioned previously, our primary distribution channel is self-distribution. Another

channel will be allowing consumers to come to the brewery to buy 1/6th barrel and barrel
kegs directly from us. We will have specific hours of operation when our doors will be open to
the public for direct purchase. Finally, our last distribution channel will be working with the
various State licensed distributors, especially when crossing state lines. The reason we want to
resist going to distributors initially is that distributors typically work on a 25% gross margin.
By self-distributing we will retain this margin, but the added costs of self-distribution must be
paid for with the 25% margin we are saving. The larger the area we intend to distribute within,
the less profitable it will be to self-distribute. Selling to 20-30 accounts within a 50-60 mile
radius is logistically reasonable for self-distribution and can be quite profitable. Much more
beyond that range, we will certainly consider using a distributor.
LOCATION INFORMATION
The corporate office and main brewing facility will be located in Morgantown, WV. The
exact location will be found once start up capitol is raised to pay for rent and utilities. In the
meantime, the corporate address for Rustik Br Brewing Company, Inc. is:
135 E Hillview Dr.

The types of properties we are primarily investigating are vacant lots where the property
owners are willing to build to suit. For a property to be selected for review, it must meet the
following criteria:
Outside of Morgantown city limits to avoid unnecessary taxes and strict code
enforcement.
Close proximity to interstate highways for easy transportation.
Access to municipal sewage
Access to natural gas is a plus, but propane tanks can be used as a backup.
Close enough to Morgantown to be considered a Morgantown brewery.
Plenty of space for expansion.
Commercially zoned.
The building will be a simple steel building construction. A steel building is a cost effective
and simple solution that will keep overhead low and allow for easy future expansion if
necessary. We believe a structure with dimensions of 40 by 60 is adequate for present space
requirements. This space also meets the needs for future growth for the next five years.
DESCRIPTION OF PRODUCTS/SERVICES
As a distribution brewery, the two initial beers to hit the market will be Auld Adage Ale and
Black Forge Ale. These beers will be released simultaneously. The descriptions of these two
beers are as follows:
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Auld Adage Ale: 4.5% ABV, 24 IBU, 12 SRM. Artfully crafted, easy drinking and light to
medium bodied British inspired ale, Auld Adage is a simple ale that is amazingly tasty. Although
this ale is full of flavor with floral hop aroma, you wont find the strong bitterness common to
many American pale ales. Yet you will enjoy a well-balanced amber colored beer that is
surprisingly refreshing!
Black Forge Ale: 6.0% ABV, 37 IBU, 40 SRM. Black Forge is a black ale. This is a
wonderfully medium-bodied beer that has light caramel notes and possibly a hint of chocolate!
What makes this beer special is how well-balanced the malt character makes this beer, without the
perception of any lingering bitterness.
Once we have doubled our monthly barrel capacity, by year two of operations, we will begin to
release other ale styles. Our goal is to maintain a diverse craft beer portfolio. We will release new
beers each year, along with seasonal beers, 22 ounce bottled small-batch signature series beers and
contracted recipes with local bars and restaurants who want to maintain naming rights to beers we
brew for them.
We have several formulated and market tested recipes waiting for release once we have the
capacity to brew them. We have designed the following recipes: Hefeweizen, American Dunkel,
Munich style Helles, Belgian Witbier, Rye-Wheat IPA, Honey Malt Amber ale, Oktoberfest,
Pumpkin Ale, Brown Porter and Dry American Stout. We will continuously spend the time to
research and develop other styles and variations of current styles for production release.
The 22 ounce bottled signature series beers can be an assortment of Pale Ales or IPAs with
varying hops or yeast cultures. We have ideas to make strong ales, sours, and barely wines. We
even plan to bottle small batches of the production beers to make them available for small orders
for local restaurants and boutique wine/beer shops that do not serve draft beers. We dont plan for
large production bottling until our fifth year of operations.
Creating a craft beer brand for local bars or restaurants is an under developed marketing idea
we plan to exploit. We will attempt to sell this idea as a package, complete with details describing
the costs and contracts. Although the restaurant or bar will maintain their naming rights, we will
require recognition that they beer is brewed by Rustik Br. These beers will be brewed in small
one barrel batches for each account.
Merchandising is a great way for a company to market their brand name and to bring in
additional sources of income. Rustik Br plans to capitalize on this practice as well. The website
will make available to the general public a Rustik Br apparel line. T-shirts, sweatshirts, hats, and
bags with the Rustik Br logo will be available for purchase.
An innovative item for purchase will be rustic leather 22oz mugs. Each mug will be hand
crafted. Another innovative recycled product we will sell is dog treats made from spent brewing
grains. Some of these treats will be donated to the local dog shelters. This will help in building
strong community ties.
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Other products available to the Rustik Br fans and customers will include glassware,
growlers, bottle openers, and beer taps. An eBook will be available for purchase for any
homebrewer or potential entrepreneur who wants to take their brewing skills to the professional
level. This book will detail every step in opening a small scale brewery.
Once the beer leaves our brewery, we have little control over the quality of the beer while in
the customers hands. To help control the quality, we plan to clean and purge the beer lines each
month when new kegs are delivered. As a service, we can offer to purge and clean other beer lines.
We would charge a nominal fee for each line cleaned.
CONSULTANTS/ATTORNEY INFORMATION
Attorney Information:
William F. Kirk Attorney: contracts, legal assistance, consultant
William F. Kirk of Rogers, Townsend & Thomas, PC, in Charlotte, NC, has practiced law
since 1999, appearing extensively before state and federal courts of North Carolina, West Virginia
and Nevada. He is currently licensed in North Carolina, West Virginia, Maryland, Nevada and
California. His experience includes real estate title litigation and creditors rights, employment
law, construction law, and criminal defense. Mr. Kirk is also an experienced transactional attorney
for real estate acquisitions and sales, secured interests, corporate formation and governance, and
securitization of mortgage backed securities. In recent years, Mr. Kirk has concentrated his
practice litigating on behalf of financial institutions and title insurance companies. He has
prosecuted hundreds of reformation and quiet title actions to resolve real estate title issues. He is
also experienced with all aspects of non-judicial and judicial foreclosure actions, appeals and
deficiency actions.
The following are consultants/advisors to Rustik Br:

Adriane Katona Accounting advisor
Adriane Katona began her accounting career in 2005 by working for Swisher Hygiene. She
manages accounting operations totaling 4.5 million dollars for both the Houston & Austin
locations. She also trained with H&R Block and became a certified tax preparer with a focus in
individual returns in 2006. She has worked in positions where she was the financial manager and
bookkeeper. As of April 2009, she took a position as the financial manager for a corporation with
9 retail outlets. She handles approximately three million in sales annually. Her expertise in
accounting focuses on managing companies that are extremely cash challenged. This task requires
a close eye on costs, diligence with accounts receivable and impeccable forecasting abilities in
order to maintain operations.
Bill Caruso Business and process engineering consultant

Bill Caruso concentrates his expertise in the areas of process design and analysis to ensure quality
control and continuous process improvement for all aspects of Rustik Br. He currently holds two
Masters degrees in the field and is considered a thought leader for process improvement zealots
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across the world. He is a certified Lean Six Sigma Master Black Belt and is recognized as a
Business Process Reengineering Master by the late Dr. Michael Hammer of MIT. Bills innovative
approach and constant focus on business process improvement have helped many in the
commercial and government sectors increase efficiency and boost profits. He is responsible for
100s of millions in savings across the Department of Defense and was recently recognized by the
US Air Force for his outstanding support and contributions focused on the future state processes of
Air Force Acquisitions.
Kelley Jones Safety Engineer consultant

Kelley C. Jones of First Energy has expertise in the Code of Federal Regulations 1926 OSHA
Construction and 1910 OSHA General Industry. His concentration is currently in the electric
utility industry which encompasses both construction and general industry safety. Past experience
includes Risk Engineering that included the evaluation of the safety programs and the monthly
inspections of large market accounts in the construction industry. His experience has included
safety in: Municipalities, military installations, military contractors, and heavy industry. He
earned a Master of Science in Safety Management from West Virginia University and continues to
advance his career through merger requirements for employees in a newly merged company.
Bill Kirk Water treatment systems

As director of Reliance Laboratories, Inc. in West Virginia, Bill Kirk oversees two facilities
offering environmental analytical services for clients in Bridgeport and Martinsburg. The main site
is in Bridgeport. Both sites offer water, wastewater, soils and hazardous material testing services,
among others, for clients ranging from local government regulatory bodies to commercial
operations. Established in 1977, the Bridgeport site is manned by a staff of up to 15 to run the
6000-square-foot laboratory. About 180 miles away, the Martinsburg branch is a 3000-foot facility
with a staff of five and has been in operation since 1992. On average, between 300 and 500
samples a day, pass through the labs.
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MANAGEMENT AND OPERATION PLAN

Development Process
C. Bryce Capodieci is the founder, CEO/President and head brewer for Rustik Br Brewing
Company. Bryce and Assistant Brewer, Luke Smith, will have the responsibility for brewing the
craft beer. As CEO, Bryce will manage the daily routines of the brewing process. Such duties
include:
Employee scheduling
Inventory management and procurement
Brewing process data logging
Equipment cleaning and sanitation
Yeast collection, storage and propagation
Servicing sales accounts
Recipe development and testing
Instrument calibration
Quality process management
Marketing and Advertising management
Intern and new employee training
Division of Time Number of Days per month
5
1 10
3 Brewing
3 Sales
Distribution
Advertising
Festivals
20 Meetings
20 Research
Figure 7 Division of Time Managing the Business
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The services of Mark Kiger, CPA have been employed to oversee the daily cash flow, payroll,
benefits, financial statement reporting and any other accounting needs for the company.
Currently, the two recipes planned for initial release (Auld Adage Ale and Black Forge
Ale) have been formulated and repeatedly brewed with reliable consistency. Along with the
creation of the first two recipes, a marketing plan and sales plan have been created. We have a
marketing director who will handle the implementation of these plans. Kevin Hamric, Director of
Marketing and Sales, has a marketing and public relations background. His applicable knowledge
of these fields is a huge benefit to Rustik Br. Kevin has a love and passion for the brewing
industry. Strong values, work ethic and knowledge make Kevin a great fit and the right choice for
Rustik Br.
A water treatment filtration/process will be installed to help keep a consistent and clean water
profile. The brewery is designed to ensure the complete brewing process can be completed by a
single person with safety considerations.
Industry Association Membership

There are two industry related organizations that C. Bryce Capodieci is a current member.
These organizations are the American Homebrewers Association (AHA) and the Brewers
Association (BA). The BA provides market information about the beer industry, provides updates
on new laws that affect the brewing industry and provides various online tools that help any
business member.
Bryce Capodieci is participating in the foundation of West Virginias first brewers guild. The
mission of this brewers guild, the West Virginia Craft Brewers Guild (WVCBG) to promote WV
breweries, create an open line of communication between brewers, to be an advocate for more
modern beer laws, to build a community of brewers, advance their common interests and to
promote the quality and value of their beers.
Suppliers
The cost of raw materials dramatically decreases as quantities purchased increases. There are
several suppliers that service the brewing industry. To get the best industry pricing, a pallets
worth of products must be ordered. Before any new products are purchased from a supplier, each
product must pass through a qualification process. Once a product meets the following guidelines,
it can be considered a quality product for future purchases. Future audits may be necessary to
ensure the quality and pricing are maintained.
1. Prices for products must be compared between three similar suppliers. Although price is a
driving force for profitability, quality of products will be the final determining factor in a
purchase.
2. All products used in any recipe must be available from three separate suppliers. This will
maintain a steady supply chain.
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3. Products bought from suppliers must have identical substitutions between the other
suppliers.
4. All products must meet industry quality standards.
5. For raw products, suppliers must provide batch analysis reports.
Quality Control
Rustik Br will implement the six sigma quality control process to ensure our customers
always have consistent, quality beers at all times.
Define the problem.

Measure key aspects of the current process and collect relevant data.
Analyze the data to investigate and verify cause-and-effect relationships, determine
what the relationships are, and attempt to ensure that all factors have been considered.
Then seek out root cause of the defect under investigation.
Improve and optimize the current process based on data analysis techniques.
Control the process to ensure that any deviations from the target are corrected before
they result in defects.
We believe that business efficiencies also promote quality. The following practices will help to
make our business cost effective and efficient.
Minimize out of stock

Improve product freshness and warehouse efficiencies
Maximize warehouse space utilization
Provide cash flow efficiencies
Capitalize on peak sales weeks
The brewing quality control process starts with inspecting all incoming raw ingredients. This
includes the malt, hops, yeast, water and any other ingredients used in the beer recipes. The tap
water of Morgantown is taken from the Mon River. The chemistry of this water can vary
drastically throughout the year. To maintain consistency in our beer, we have opted to filter and
purify the water. Then the necessary water salts will be added back into the water as each recipe
requires. This water will be tested monthly to make sure the filtration process is working as
desired.
Next, proper storage of these raw ingredients is very important. The humidity levels,
temperature, and exposure to sun light are all factors to be considered for proper storage of the raw
ingredients. By maintaining low humidity storage rooms free of insects and rodents, the life and
freshness of these items will be extended. Room ambient temperatures of 60 F that do not have
drastic temperature swings and void of direct sunlight will also extend the life of the raw
ingredients. The yeast must be stored in refrigerators. Care must be taken to properly clean and
sanitize all equipment and storage vessels to ensure yeast is not cross contaminated or off-flavor
bacteria and wild yeast do not infect the beer. All raw ingredients must be properly dated and
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labeled. The FIFO (First In First Out) process will be employed to ensure the freshness of all
ingredients.
Finally, all batches of beer will be sampled and graded for quality and consistency. If a batch
of beer does not meet these standards, it will be analyzed for possible improvements. If steps
cannot be made to allow the beer to meet our standards, it will be destroyed.
Each keg will be weighed to make sure it has the proper fill of beer. The weights for Auld
Adage and Black Forge in the different keg sizes are:
Beer Keg Size Weight

Auld Adage 1/6 barrel 5 gallons 55 lbs.
Auld Adage 1/2 barrel 15.5 gallons 150 lbs.
Black Forge 1/6 barrel 5 gallons 55 lbs.
Black Forge 1/2 barrel 15.5 gallons 150 lbs.
Table 1 Keg gross weights
Production Process
Production
With the initial setup of two 10 bbl fermenters, we can potentially brew up to four times a
month. The brewing process can last between 8-10 hours per brew day. The brewing process will
start with the heating of the hot liquor. Once the Hot Liquor Tank (HLT) has reached the necessary
temperature, the malt will be milled and transferred to the mash tun as the hot liquor is transferred
to the mash tun at the same time. This will help avoid clumping. The mashing process will take
one hour to complete. Next, the malt will be sparged and the wort collected will be transferred to
the kettle and the hop schedule is followed per recipe. Depending on the recipe, the boil process
will take 60-90 minutes. While the wort is boiling, the spent grains will be shoveled out of the
mash tun into storage bins that will be placed outside and wait for a local farmer to remove. When
the boil has completed, the wort will be quickly cooled using a heat transfer system and then
ultimately pumped into a fermenter. If the fermenter is a 20 bbl vessel, the brewing process will
repeat a second time.
After the yeast is pitched, the fermentation cycle will last between 7 to 10 days. Before
fermentation has completed, the viable yeast will be harvested from the bottom of the fermentation
vessel to be reused for the next batch. The yeast can be stored for a couple of weeks and
propagated if necessary to meet the viability and pitching rate requirements that meet quality
standards. Tests will be performed on each batch of yeast in the lab. All test data will be logged.
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Flow charts will be available at all times for inspection. These bound, hardcopy guidelines will
be in accessible locations to employees and inspectors if necessary. The flow charts will serve as
guidelines for processes such as:
Overall brewing process and procedures

Yeast handling
Waste removal
Cleaning and Sanitation
Keg cleaning/filling station
Once the beer has completed the fermentation cycle, it will be kegged directly from the
fermenters. At this point each of the beers will be carbonated to the appropriate CO2 volume and
then sent to cold storage for a minimum of two weeks before they are available for distribution.
Kegs stored in cold storage will be placed on 4x4 pallets and double stacked with a hydraulic
fork lift. Kegs of the same dimensions will be placed on pallets together. The following is a
reference for how many kegs can be stored on a standard pallet.
15.5 gallon kegs will stack 8 per 4x4 pallet

5 gallon kegs will stack 25 on 4x4 pallet
10 barrels equals 310 gallons. From the 310 gallons, 62 1/6th barrel kegs, also known as 5
gallon Sanke kegs, can be filled. These particular sized kegs will only be available for initial
distribution until demand for our beer increases. Then 1/2 barrel Sanke kegs will be purchased and
then distributed in addition to the 1/6 barrel Sanke kegs. The estimated wholesale pricing of the
kegs to be sold are listed in the following table.
Capacity Wholesale Price

1/6 barrel 5 gallons Auld Adage $59.99
1/6 barrel 5 gallons Black Forge $69.99
1/2 barrel 15.5 gallons Auld Adage $139.99
1/2 barrel 15.5 gallons Black Forge $149.99
Table 2 Wholesale keg pricing
Note: These wholesale prices are price matched with other West Virginia craft breweries of the
same keg capacity.
Physical Brewery
For effective brewery operations at our initial brewing capacity, floor plan dimensions should
be approximately 40 by 60. The below diagram is a possible floor plan:
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Figure 8 Brewery Floor Plan
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Equipment
Cost per
Items Quantity unit Total Cost
Capital Equipment $166,365.00
Kegs, 1/6 bbl 240 $46.00 $11,040.00
10 bbl brewhouse (mash tun/kettle/control) 1 $78,500.00 $78,500.00
Air Compressor 1 $500.00 $500.00
Auger/Conveyor - 2 hp motor 1 $1,000.00 $1,000.00
CIP-100 trolley 1 $5,400.00 $5,400.00
Cold Liquor Tank 20 bbl 1 $1,000.00 $1,000.00
Fermenter, 10 bbl 2 $8,750.00 $17,500.00
Filter, beer 1 $500.00 $500.00
Fork lift 1 $5,000.00 $5,000.00
Glycol coolant system 1 $16,500.00 $16,500.00
Grain mill 1 $925.00 $925.00
Keg cleaning/filling station 1 $1,000.00 $1,000.00
PLC, Siemens 1 $12,500.00 $12,500.00
Steam boiler 840,000 BTU /hr max 1 $15,000.00 $15,000.00
Cold Storage Room $15,000.00
Cold Storage Room 1 $15,000.00 $15,000.00
Installation Charges $27,175.00
Brewhouse Installation charges 1 $6,500.00 $6,500.00
Brewing Consultant/Installation Supervision 1 $6,500.00 $6,500.00
Contractor fees 1 $10,000.00 $10,000.00
Steam boiler, installation 1 $2,000.00 $2,000.00
CO2 Tank 1 $175.00 $175.00
Propane Tank, 1000 gal tank w/ 800 lb installed 1 $2,000.00 $2,000.00
Miscellaneous $15,250.00
Water Filtration system 1 $1,000.00 $1,000.00
Alarm system, building security 1 $2,250.00 $2,250.00
Brewers Bond 1 $1,000.00 $1,000.00
Cellar equipment: Pump, hoses, misc. 1 $3,000.00 $3,000.00
Fees, Legal aid for TTB application 1 $3,000.00 $3,000.00
Sanitizer and acid wash supplies 1 $500.00 $500.00
Starting inventory: grains, hops, & yeast 1 $3,000.00 $3,000.00
WVABCC Beer License 1 $1,500.00 $1,500.00
Shipping costs $5,000.00
Brewhouse Shipping costs 1 $5,000.00 $5,000.00
SUBTOTAL $228,790.00
TOTAL LEASED VALUE
TOTAL ESTIMATED START-UP CAPITAL $228,790.00
Table 3 Brewery equipment list and miscellaneous items required for startup.
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Special requirements
Before the brewery is assembled, Rustik Br will be working with various organizations and
departments to ensure all laws and codes are properly met.
Morgantown Utility Board (MUB) will be contacted. To be an environmentally sound

company, we need to understand how to reduce caustic cleaning solution in the sewage
system. Such waste can be taxing the current water treatment infrastructure.
Monongalia County Planning Commission will be contacted to ensure we abide by all zone
laws and ordinances for a manufacturing facility.
Morgantown Health Department will be contact to ensure the design and functionality of
the brewery meets the States health code.
Fire Marshall will be contacted to ensure the fire alarm/system meets code. The kettle
system must be inspected as well since it is a gas fired system open used for boiling liquids
West Virginia Department of Health and Human Resources/ Off of Environmental Health
Services will be contacted with a floor plan and process flowcharts for a pre-inspection.
This is a new department created to monitor businesses that are in the food and beverage
industry. Representatives will conduct yearly audits.
Materials
Malt Malt can be purchased from several different distributors. Although most maltsters make
the same malts, it is important to know that these malts do vary in color and taste due to
differences in malting techniques. Care must be taken when making substitutions between two
different malt companies. Here are a few of the industry standard suppliers:
Great Western Malting
North American Distributors
Mid-Atlantic Brewing Company
Yeast - There are two main yeast suppliers within the USA. Both make various styles and are
easily substituted between the two companies.
White Labs
Wyeast
Hops Hops are purchased through wholesalers. We will purchase pelletized hops.
Hop Union
Yakima Hops
Inventory
Brewing software will be used to track raw material inventory. The software will deduct what
ingredients are used and in what quantities. These numbers will be deducted from the amount
maintained in inventory and a report will be generated when raw ingredients need to be ordered.
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For equipment, office inventory and cleaning products, an Excel spreadsheet will be used to
maintain those inventories. Reports can be generated monthly from these spreadsheets that will
help maintain our cash flow reports.
Feasibility
Rustik Br has been working on recipe formulation for Auld Adage Ale and Black Forge Ale
for several months. Both beers have been market tested. Both have been well received. Market
survey cards have been provided when each beer has been sampled and the feedback is very
informative. We feel we have sampled a fair demographic sampling of Morgantown, WV.
To ensure quality products, our process is tested and evaluated at every step of the brewing
process, for every brewing session. The malt, hops, water, and yeast all go through our rigorous
quality control process. This process includes visual inspection of each raw ingredient before it is
used. We employ the First In, First Out (FIFO) method of quality inventory control. Other raw
ingredient quality control measures include tasting, smelling, and physically handling the material.
Any sign of age or spoilage and the ingredients are properly discarded.
During the mash step, measurements are taken, recorded and compared to previous batches.
Although there is room for minor data fluctuations, this information will be a great indicator of any
possible problems. The beer is taste tested during the fermentation and conditioning phases to
make sure the beer is developing properly. Then finally, before the beer leaves the brewery for
distribution, 1% of the kegs are randomly selected for taste evaluation. If the product does not
meet our high standards, we first attempt to save the beer or destroy it if necessary. If any of these
kegs fail our 1% random selection, then 5% more are selected to make sure the low quality beer is
contained. Sometimes additional cold conditioning will solve some issues. But if there are
apparent defects in the beer, the beer must be discarded.
From time to time, samples of the brewing water and the finished beer will be sent to
laboratories for analytical testing. We will use this information as a guideline to ensure we are
maintaining our high standards and are making proper adjustments from year to year to keep our
product consistent. Nature is inconsistent each year. So the malt and hops will vary. It is up to us to
know these changes and adapt them to the brewing process to maintain a consistent beer year after
year.
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MARKETING/ADVERTISING PLAN
In the Financial Projections, we have a budget of $3000 for the first year of operation, this
budget increases each year to allow more advertising in different markets around West Virginia.
Other than traditional paid advertising, we will take advantage of the following marketing and
advertising tools that are either free or relatively low cost items.
Engaging the public via social media, such as electronic newsletters, Facebook and
YouTube.
o Pictures of the brewing process
o Blogs
o Stories of mistakes and mishaps
o Stories of success and news articles
o News of seasonal beers and new merchandise.
o Funny short videos
o New accounts with links to their website this increases our partnership with
our business customers.
Point of Sale items (POS):
o Coasters
o Bottle openers
o Table tents
o Stickers
Rustik Br has a marketing plan that takes advantage of the digital age by utilizing social
networks, blogging, and viral marketing. Facebook and YouTube will be the main source of social
networking. Other traditional tools to aid in marketing the Rustik Br brand will be billboard,
radio, magazine and newspaper advertisements. Two local radio stations servicing the
Morgantown area are WCLG and WVAQ. Two local newspapers where advertisements can be
made are the Dominion Post and West Virginia Universitys own publication: the Daily
Athenaeum.
By following our company values and always selling the highest quality beer, we hope word
of mouth will be our strongest marketing tool by building a strong reputation for our company. To
help get our products image to the marketplace, we plan to attend all statewide fairs and festivals,
where beer is served. When expanding to new accounts such restaurants and bars, our intention is
to give out samples to the customers of these new accounts to promote our brands.
Marketing is less about what your product is or does; it is more about what it stands for.
The following is a checklist to ensure that any new marketing campaign, advertisement, or
business practice follows our core company value system.
Values
Honesty Proper and ethical business practices at all times.
Dependability Never disappoint our customers with poor customer service. Their needs
always come first.
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Quality Produce a high quality product at all times.

Always improving constant process audits and continual education within the business
and brewing industry.
Our business is a family - Do what is in the best interest of the family
(employees/investors) and local community.
Philosophy
This is what WE do. We want everyone involved with Rustik Br or employed by Rustik
Br to think of the company as their company. We are a team.
Take pride in our company.
Beer before money If our beer is past its shelf life or does not meet our quality standards,
this beer will never be served. Either the beer will be bought back from our accounts or it
will be destroyed before reaching our customer accounts.
Mission
To become a brewery that has a profound effect on the brewing industry.
We are here to learn and teach about the brewing industry.
To grow as a green business and to be a major influence in the community.
To have fun.
Branding
Remain faithful to our personal standards and to the core of our brand identity and/or
theme
Reinventing simple and enjoyable craft beer.
Consider each of our products to determine how effectively they reflect our companys
mission statement.
Our product is sound and enduring not based on unsubstantiated theories or fads.
Sales
Higher quality craft beer, produced at a lower volumes and sold at a higher price.
Research and Development

Surveys, feedback, comment cards, website comments to change recipes or to engineer
different beer styles that the public wants.
Receiving and acting on employee and customer input. Using this information to make a
better product or to improve on company processes.
Innovation
Encourage employees to design and improve their daily work environment to be put to use
within the company. Reward these employees with monetary bonuses.
Design and invent new products to be sold online.
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Social and Ecological Ramification

Is our company going to affect our friends, family, and community in a positive way?
Can we improve our working and social environment?
What affects to we have on the natural environment and can we make improvements?
Be a green company, using sustainable practices such as recycling, wind/solar power and
charities.
Trends
Trends will last, fads will fade.
Its not that we should necessarily follow trends, but we should pay attention to them and
possibly adapt those trends to our business model.
Motto
Get back to simple.
CUSTOMER PROFILE
There are no immediate plans to bottle our beer. So our initial targeted customers are the bars
and restaurants of Morgantown, WV who serve draft beer. Initially, our focus will be on the
locations where craft beer or imported beer is prominently purchased and enjoyed by their
respective patrons. Through current marketing, we already have several bars and restaurants within
Morgantown that have a strong interest in selling our beer.
Morgantown has a moderately sized and diverse population. With the large selection of cuisine
throughout the city, superior crafted beer is well received. The understanding and awareness of
pairing great beer with great food is steadily growing.
With the accessibility of many new craft beers and imported beers within Morgantown that are
regularly consumed, the groundwork for a new craft beer is already laid out.
COMPETITION
The local competition for crafted beer within West Virginia is among the following breweries:
Current Breweries:
Bridge Brew Works (Fayetteville)
Chestnut Brew Works (Morgantown)
Mountain State Brewing Company (Thomas)
Current Brewpubs:
Blackwater Brewing Company (Davis)
Charleston Brewing Company (Charleston)
Morgantown Brewing Company (Morgantown)
North End Tavern (Parkersburg)
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Breweries in Planning:
Big Timber Brewing (Elkins)
Brewstel (Elkins)
Greenbriar Valley Brewing Company (Lewisburg)
The Nook (Fairmont)
Rustik Br Brewing Company (Morgantown)
Although these businesses are technically our competitors, the Brewers Association along
with various industry blogs, have documented that in most craft brewing markets, several craft
breweries located in the same small geographic area are actually beneficial to the growth and
success of each brewery. Instead of thinking of these breweries as competition, we plan to work
with them to help promote the craft brewing industry. Such a progressive way of thinking will
allow us to all benefit together.
FINANCIAL PLAN
We have spent the last 1.5 years researching the market and compiling the exhaustive financial
projections. It is true when current brewery owners advise, Whatever cost you think you have for
the brewery, multiply that number by three. We originally thought we could put together this
brewery for $100,000. Due to our intensive cost analysis, we now see $400,000 is the minimum
amount of capital to safely and intelligently start and operate a 10 bbl distribution brewery.
Our goal to raise the necessary startup capital is primarily through private investors. We have
contingency plans if we fall short of the $400,000. The subscription agreement states that a
minimum of $300,000 worth of shares must be sold by August 31, 2013 before we can move
forward with this business venture. If we only raise $300,000, we can borrow up to $100,000 from
two micro lending companies located in Washington, Pa. Another loan possibility will be SBA
sponsored loans.
We want local investor money first to give friends of Rustik Br a sense of belonging,
community pride and the greatest share value possible. However, there are other financial options
as well. These are possible solutions only to be considered if we cant raise a minimum $300,000
from local investors.
o Redevelopment funds contact Morgantown.

o Grow America fund works with cities to loan to businesses
o Cloud funding internet donations and small angel investors.
The following financial information is a summary of the data collected and calculated for quick
and easy analysis. For a complete report of the data, please find separate Excel spreadsheet:
Financial_Projections-Rustik Br.xls.
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Startup Cost Analysis

Items Quantity Cost per unit Total Cost Leased items
Capital Equipment $166,365
Kegs, 1/6 bbl 240 $46.00 $11,040.00
10 bbl brewhouse (mash tun/kettle/control) 1 $78,500.00 $78,500.00
Air Compressor 1 $500.00 $500.00
Auger/Conveyor - 2 hp motor 1 $1,000.00 $1,000.00
CIP-100 trolley 1 $5,400.00 $5,400.00
Cold Liquor Tank 20 bbl 1 $1,000.00 $1,000.00
Fermenter, 10 bbl 2 $8,750.00 $17,500.00
Filter, beer 1 $500.00 $500.00
Fork lift 1 $5,000.00 $5,000.00
Glycol coolant system 1 $16,500.00 $16,500.00
Grain mill 1 $925.00 $925.00
Keg cleaning/filling station 1 $1,000.00 $1,000.00
PLC, Siemens 1 $12,500.00 $12,500.00
Steam boiler 840,000 BTU /hr max 1 $15,000.00 $15,000.00
Cold Storage Room $15,000.00
Cold Storage Room 1 $15,000.00 $15,000.00
Installation Charges $27,175.00
Brewhouse Installation charges 1 $6,500.00 $6,500.00
Brewing Consultant/Installation Supervision 1 $6,500.00 $6,500.00
Contractor fees 1 $10,000.00 $10,000.00
Steam boiler, installation 1 $2,000.00 $2,000.00
CO2 Tank 1 $175.00 $175.00
Propane Tank, 1000 gal tank w/ 800 lb installed 1 $2,000.00 $2,000.00
Miscellaneous $15,250.00
Water Filtration system 1 $1,000.00 $1,000.00
Alarm system, building security 1 $2,250.00 $2,250.00
Brewers Bond 1 $1,000.00 $1,000.00
Cellar equipment: Pump, hoses, misc. 1 $3,000.00 $3,000.00
Fees, Legal aid for TTB application 1 $3,000.00 $3,000.00
Sanitizer and acid wash supplies 1 $500.00 $500.00
Starting inventory: grains, hops, & yeast 1 $3,000.00 $3,000.00
WVABCC Beer License 1 $1,500.00 $1,500.00
Shipping costs $5,000.00
Brewhouse Shipping costs 1 $5,000.00 $5,000.00
SUBTOTAL $228,790
TOTAL LEASED VALUE $0.00
START-UP CAPITAL/EXPENSES $228,790
Working Capital $171,210
TOTAL START-UP CAPITAL REQUIRED $400,000
Table 4 Startup Cost Allocation
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Figure 9 - Startup Cost Allocation
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Revenue Projection
Net Sales Net Sales Net Sales Net Sales Net Sales
Growth Growth Growth Growth Growth
YR/YR YR/YR YR/YR YR/YR YR/YR
5 Year Profit/Loss 0.0% 44% 46.8% 34.4% 44.2%
2014 2015 2016 2017 2018 5 Yr Total

Auld Adage 1/6 bbl pricing $59.99 $59.99 $62.99 $53.59 $53.59
Black Forge 1/6 bbl pricing $69.99 $69.99 $73.49 $62.49 $62.49
Investor Dividend Percentage 0% 0% 0% 4% 6%

Investor Dividend $0.00 $0.00 $0.00 $9,169.67 $43,092.19
Beer $77,186.13 $138,615.19 $261,381.54 $399,247.82 $716,991.72 $1,593,422.39

T-shirts $239.88 $239.88 $239.88 $239.88 $239.88 $1,199.40
Leather Mugs $479.88 $479.88 $479.88 $479.88 $479.88 $2,399.40
Br Bones - Dog Treats $183.77 $191.76 $191.76 $191.76 $191.76 $950.81
Tap Handles $299.88 $299.88 $299.88 $299.88 $299.88 $1,499.40
Gross Sales $78,389.54 $139,826.59 $262,592.94 $400,459.22 $718,203.12 $1,599,471.40
Total Cost of Goods Sold (beer) $36,040.42 $42,574.53 $71,512.02 $118,276.90 $196,204.28 $464,608.15
Total Cost of Goods Sold (T-shirts) $64.20 $64.20 $64.20 $64.20 $64.20 $321.00
Total Cost of Goods Sold (Mugs) $338.40 $338.40 $338.40 $338.40 $338.40 $1,692.00
Total Cost of Goods Sold (Br Bones) $26.68 $27.84 $27.84 $27.84 $27.84 $138.05
Total Cost of Goods Sold (Tap Handles) $922.80 $922.80 $922.80 $1,845.60 $1,845.60 $6,459.60
Total Cost of Goods Manufactured 125,669.02 153,135.01 171,387.85 232,338.34 380,805.40 $1,063,335.62
Overhead Expenses: $161,709.44 $195,709.54 $242,899.87 $350,615.24 $577,009.68 $1,527,943.77

Profit/Loss from Operations -$83,319.91 -$55,882.94 $19,693.07 $49,843.97 $141,193.44 $71,527.63
Provision for Income Tax $0.00 $0.00 $4,332.48 $10,965.67 $64,948.98 $80,247.13
Net Profit -$83,319.91 -$55,882.94 $15,360.60 $38,878.30 $76,244.46
Gross Profit % 0.0% 0.0% 5.8% 9.7% 10.6%
Product Margin Beer ($) $41,145.70 $96,040.67 $189,869.52 $280,970.92 $520,787.44 $1,128,814.24
Product Margin T-shirts ($) $175.68 $175.68 $175.68 $175.68 $175.68 $878.40
Product Margin Leather Mug ($) $141.48 $141.48 $141.48 $141.48 $141.48 $707.40
Product Margin Br Bones ($) $157.09 $163.92 $163.92 $163.92 $163.92 $812.76
Product Margin Tap Handles ($) -$622.92 -$622.92 -$622.92 -$1,545.72 -$1,545.72 -$4,960.20
Table 5 Revenue Projection for 5 years
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Figure 10 Total Net Profit
Break Even Analysis
Figure 11 Break Even Analysis
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Cash Flow Analysis
Figure 12 - Cash Flow for Year 1 Figure 12a Capital Purchases for Year 1
Figure 13 Cashflow for Year 2 Figure 13a Capital Purchases for Year 2
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Figure 14 Cash Flow for Year 3 Figure 14a Capital Purchases for Year 3
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PRODUCTION AND GROWTH
Figure 17 Net Sales vs. Capital Reinvestment and bbl Capacity
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Rustik Br Five Year Barrel Production
Figure 18 Rustik Br Barrel Production
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Five Year Projected Growth Brewery Comparison
Figure 19 WV Competition Barrel Production
Figure 20 Sierra Nevada Brewing Company in their first five years of operation.
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Figure 21 Stone Brewing Company barrel growth over 17 years.
Figure 21a Stone Brewing Company in their first five years of operation.
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Figure 22 Bridge Brew Work barrel production, actual bbls compared to our conservative
calculations.
Figure 23 Mountain State Brewing barrel production, actual bbls compared to our
conservative calculations.
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Customer Accounts
Figure 24 Number of Customer Account needed to meet our calculated projections
Note: As of April 2013, Morgantown has a total of 180 local businesses that are licensed from the
WVABC. The accounts could potentially be draft beer customers.
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RISK AND EXIT PLAN

Our company should be able to see within the first two years of business, whether our business
will be on the path to success or failure. If we raise the necessary $400,000 startup capital, we
believe we will have enough cash flow required to keep the company operating under the negative
net sales for the first three years. We have markers on the cash flow charts that will indicate
downward trends that will warn us of impending cash flow problems. If this does occur, we can
apply for small business loans to keep the business operational.
There are some risks involved in this business that are difficult to organize proper preparations.
Such risks are:
Untimely death of Bryce Capodieci

State or Federal legislation on beer production and distribution.
Sharp price increases on fuel and raw materials
Fire, flooding or other catastrophic damage to the property.
Although Rustik Br Brewing Company is planning for success, we are prepared for failure. In
the event our business is not successful in tomorrows market place, we have plans to intelligently
exit the market and close for business.
Building lease agreement will have an exit clause to break the lease agreement should the
business fail.
IRS, Federal and State governments will be notified of the close of business.
Any raw materials left on hand will be sold to local homebrewers to recoup all raw material
costs.
In the event of the untimely demise of Bryce Capodieci, a life insurance policy of $200,000
will be used to settle any company debts.
Capital equipment will be sold at fair market value to recoup some of the investment costs
Investors will be paid back their investments with all remaining liquid capital.
Equipment will be sold or auctioned off. Investors will get the first shot at the money.
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APPENDIX A - Rsum
C. Bryce Capodieci
135 E Hillview Dr.
Mobile: (978)-204-5138
E-mail brycecapodieci@rustikbru.com
________________________________________________________________________
PROFILE:
Working as a design engineer in the electrical engineering field for 12 years, I decided to
take my homebrew hobby and passion to the professional level. Drawing from years of
professional experience in team management, project organization and planning, and customer
interaction, I felt I had the necessary skills to embark on a new business in the form of a
distribution brewery. I am also drawing on experience from years of participating in several
family owned restaurant businesses.
AREAS OF EXPERTISE:
Managing project development teams Safety and Compliance management
Frequent customer interaction Vendor and materials management
Quality, process and revenue Estimating project and labor cost
improvements Documentation and database
Critical path management management
Quality control management Organization and schedule management
BREWING EXPERIENCE:
14 years of homebrewing history

3 years of all-grain craft beer recipe formulation
Designing and building homebrewing equipment.
Winner of MASH Iron Brewer Contests 2011 and 2012
Winner of MASH AHA Big Brew Contest 2011
Completed BJCP exam preparation course 2012
Participates as a head judged per BJCP guidelines for the annual Coal Country
Brewer's Cup Competition.
Participates as a head judge per BJCP guidelines for MASH's annual
homebrewer's competition at Apothecary Ale House and Caf.
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PROFESSIONAL EXPERIENCE:
West Virginia University (WVU) Morgantown, WV. 2010 - Pres.

We are committed to fostering the discovery, exploration, and sharing of the rich
dimensions of diversity in all of our students and empowering all students to achieve.
Working as a Prof Tech III within the Student Systems Management department, my
daily role is for operations. Typical daily functions include STAR INB/Banner user
account creation, deletion, and security. Other tasks include student record maintenance,
running, testing and maintaining SQL scripts that run for daily processes and solving
technical issues that develop on a daily basis to help users maintain a productive work
day.
Electrical Systems Inc. (ESI) Clarksburg, WV. 2007 - 2010

Small private engineering company servicing the coal industry by providing intelligent
human-machine interface (HMI) designs for motor control in material handling systems.
Working with Allen Bradley HMI software packages such as RSView32, RSView
Factory Talk, and RSLogix 5000, I provided custom Logix programming and intelligent,
user friendly graphical interface. A typical project began with taking customer
specifications for a material handling design. Motor control vendors provide schematics
which are implemented into our own schematics. From the schematics, all other
associated drawings are then developed. Such drawings include: System Interconnect
drawings, PLC I/O drawings, PLC panel drawings, Equipment Location drawings, and
Device Details.
American Power Conversion, (APC), Billerica, Ma. 1998 to 2006

Global leader in the design and manufacture of uninterruptible power supplies (UPS)
and power protection peripheral equipment, with over five thousand employees world
wide and over six billion dollars in revenue.
I worked closely with customers such as Allan Bradley, Home Depot and Fujitsu. I
was responsible for coordinating the projects with our own product line manager and the
customer to ensure that all the requirements for the products could be designed and
implemented within the schedule. Once the initial design concept was approved, it was
my responsibility to see the project to completion and released to manufacturing to either
our Philippine or Chinese facility. Typically, I managed a team of 15-20 people
worldwide.
As a competent and organized project manager, I delivered quality, finished products

to the customer on schedule and on budget. Such results improved previously poor
customer relationships, thus strengthening the partnership between each company and
reducing competitor market share.
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Key Achievements:
I took over a failing OEM project with Allan Bradley and released that project on
time and without incident thereby restoring Allan Bradleys confidence in APC
and opening the doors to other $200,000+ per year projects.
Managed and designed projects in both domestic and international markets.
In smaller OEM projects, I worked as the project manager and design engineer
while delegating tasks for larger OEM projects at the same time.
Electrical Background:
My electrical skills include:
Participation in analog design with focused attention to cost and part number
reduction. Examples of such circuit designs include: Power meters, calculating the
optimal capacitance for a switching bias supply to use smaller and cheaper
capacitors without affecting performance, determining resistor ratios to control
short circuit current limits, charging currents, voltage and current feedback
circuits and filtering used in communication circuits such as USB and serial
communication.
Designing 750VA-1500VA power transformers for both tower UPS and rack
mount UPS with cost and manufacturability as important criteria in the design.
PCB layout with attention to ground planes and techniques used to help reduce
EMI and transient noises.
Familiarity with testing for EMI (conducted and radiated) to domestic and
international standards. To help reduce EMI, I have used techniques such as
Ferrite beads, optimal wiring routing, PCB layout, optimal transformer designs
and chassis designs.
Worked hands-on with our Philippine, Chinese, and domestic manufacturing
facilities to trouble-shoot and solve any testing and manufacturing line issues with
new product implementation.
Designing schematics that incorporate material handling field devices, such as
motor control, speed sensors and limit switches, into an I/O rack where a
microprocessor interprets the inputs to provide the appropriate outputs for an
operator to view via an HMI terminal.
COMPUTER:
I am experienced in utilizing Windows based PCs with various programs such as:
Windows NT/XP/Vista, Lotus Notes, AutoCAD, Oracle, spreadsheets, PowerPoint and
word processors. I have experience in troubleshooting typical computer problems. I am
experienced with creating graphics for HMI terminals using RSView32 or RSView
FactoryTalk software packages. I am familiar with programming in Ladder Logic for
RSLogix 5000 for PLC and variable motor control.
EDUCATION:
Degree: Bachelor of Science in Electrical Engineering
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West Virginia University, 1998
APPENDIX B - Financial Plan

A complete and detailed Financial Projection report is located under the
Excel filename: Financial_Projections-Rustik Br.xls. This document details
the revenue projections, cash flow projections, cash flow Punchlist, five year
projected gross profit, market capitalization for investors, and other
calculations necessary to make this business plan as accurate as possible.
APPENDIX C - Demographics
People QuickFacts Monongalia County West Virginia
Population, 2009 estimate 96,189 1,852,994
Population, percent change, April 1, 2000 to July 1, 2009 17.50% 2.50%
Population estimates base (April 1) 2000 81,867 1,808,344
Persons under 5 years old, percent, 2009 5.00% 5.80%
Persons under 18 years old, percent, 2009 16.60% 21.20%
Persons 65 years old and over, percent, 2009 10.70% 15.80%
Female persons, percent, 2009 49.40% 51.00%
White persons, percent, 2009 (a) 91.00% 93.90%

Black persons, percent, 2009 (a) 3.60% 3.40%
American Indian and Alaska Native persons, percent, 2009 (a) 0.20% 0.20%
Asian persons, percent, 2009 (a) 3.10% 0.70%
Native Hawaiian and Other Pacific Islander, percent, 2009 (a) Z Z
Persons reporting two or more races, percent, 2009 1.80% 1.50%
Persons of Hispanic or Latino origin, percent, 2009 (b) 1.80% 1.20%
White persons not Hispanic, percent, 2009 89.70% 93.20%
Living in same house in 1995 and 2000, pct 5 yrs old & over 77.80% 87.00%
Foreign born persons, percent, 2000 4.30% 1.30%
Language other than English spoken at home, pct age 5+, 2000 5.60% 2.30%
High school graduates, percent of persons age 25+, 2000 86.80% 81.60%
Bachelor's degree or higher, pct of persons age 25+, 2000 34.30% 17.10%
Persons with a disability, age 5+, 2000 6,271 171,080
Mean travel time to work (minutes), workers age 16+, 2000 21.2 25.3
Housing units, 2009 38,668 893,771

Homeownership rate, 2000 61.00% 74.30%
Housing units in multi-unit structures, percent, 2000 29.60% 12.20%
Median value of owner-occupied housing units, 2000 $136,800 $91,400
Households, 2000 31,661 746,419

Persons per household, 2000 2.54 2.37
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Median household income, 2008 $21,659 $20,891

Per capita money income, 1999 $35,331 $37,423
Persons below poverty level, percent, 2008 21.90% 17.80%
Business QuickFacts Monongalia County West Virginia

Private nonfarm establishments, 2007 2,147 396,411
Private nonfarm employment, 2007 38,070 5,920,221
Private nonfarm employment, percent change 2000-2007 26.40% 6.1%1
Nonemployer establishments, 2007 4,624 90,727
Total number of firms, 2002 5,962 120,395
Black-owned firms, percent, 2002 S S
American Indian and Alaska Native owned firms, percent, 2002 F S
Asian-owned firms, percent, 2002 F 1.10%
Native Hawaiian and Other Pacific Islander owned firms,
percent, 2002 F 0.00%
Hispanic-owned firms, percent, 2002 S 0.70%
Women-owned firms, percent, 2002 S 28.10%
Manufacturers shipments, 2002 ($1000) D 25,080,573

Wholesale trade sales, 2002 ($1000) 370,348 11,036,467
Retail sales, 2002 ($1000) 1,289,674 20,538,829
Retail sales per capita, 2002 $14,727 $11,340
Accommodation and foodservices sales, 2002 ($1000) 192,832 2,553,258
Building permits, 2009 47 2,235
Federal spending, 2008 820,887 180,024,381
Geography QuickFacts Monongalia County West Virginia

Land area, 2000 (square miles) 361.16 24,077.73
Persons per square mile, 2000 266.3 77
FIPS Code 61 54
Metropolitan or Micropolitan Statistical Area 96,189 1,852,994
Table 6 Local population demographics
Morgantown, WV Metro Area
(a) Includes persons reporting only one race.

(b) Hispanics may be of any race, so also are included in applicable race categories.
FN: Footnote on this item for this area in place of data
NA: Not available
D: Suppressed to avoid disclosure of confidential information
X: Not applicable
S: Suppressed; does not meet publication standards
Z: Value greater than zero but less than half unit of measure
shown
F: Fewer than 100 firms
Source: US Census Bureau State & County QuickFacts
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APPENDIX D Marketing offerings, Associations &

References
http://quickfacts.census.gov/qfd/ (Demographic research)
http://www.brewersassociation.org/ (Brewers Association)
http://www.homebrewersassociation.org/ (American Homebrewers
Association)
http://www.beerinstitute.org/tier.asp?sid=4 (Government Affairs)
http://probrewer.com/ (Beer Industry Resource)
APPENDIX E Legal, License & Tax Research

Legal -
o http://www.legalzoom.com (Business structure)
o http://www.uspto.gov/ (Patent and Trademark)
o http://www.sba.gov/ (Small Business Association)
License/Registration -
o http://ttb.gov/ (Tax and Trade Bureau)
o http://www.sos.wv.gov/ (WV Secretary of State)
o www.business4wv.com (WV business portal)
o http://www.wv.gov (WV business info)
Tax -
o http://www.irs.gov/ (Federal Internal Revenue
Service)
o http://www.wva.state.wv.us/ (State Business Tax and
Licensing)
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APPENDIX F Articles of Operation

Operating agreement of Rustik Br Brewing Company, LLC
THIS OPERATING AGREEMENT (the "Agreement") of Rustik Br

Brewing Company, LLC, a West Virginia limited liability company, is made
on this 10th day of June, 2011, by C. Bryce Capodieci, (the "Member"),
pursuant to the provisions of the West Virginia Limited Liability Company,
(the Act) as amended, on the following terms and conditions:
1. The name of the limited liability company formed hereby is Rustik

Br Brewing Company, LLC (the "Company").
2. The Company is formed for the object and purpose of engaging in any
lawful act or activity for which limited liability companies may be
formed under the Act.
3. The Companys initial registered agent and office in the State of West
Virginia shall be C Bryce Capodieci, 11 Turnstone Dr. Morgantown,
Monongalia County, West Virginia.
4. The Company, shall have one (1) initial member who shall be C.
Bryce Capodieci.
5. The profits and losses of the Company are allocated 100% to the
Member.
6. The management of the Company shall be vested in a Manager.
7. The term of the Company shall commence on the date the Articles of
Organization is filed in the office of the Secretary of State of the State
of West Virginia and shall continue in perpetuity.
8. C. Bryce Capodieci is an authorized person within the meaning of the

Act, and has executed, delivered and filed the Articles of
Organization.
9. The Companys Manager employees, agents or other representatives

shall not be responsible to the Company or the Member for any loss,
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liability, damage, claim, judgment, cost, obligation or expense

sustained, incurred or resulting directly or indirectly from the acts or
omissions of the Manager, employee or agent to the extent that the
Manager, employee, or agent reasonably and in good faith believed
such act or omission to be within the express or implied scope of the
authority and responsibility vested in the Manager, employee, or
agent.
10.This Agreement shall be effective as of the date of the filing of the

Company's statutory Articles of Organization with the Secretary of
State of West Virginia.
IN WITNESS WHEREOF, the sole member of the Company has entered

into and executed this Agreement under seal on the date first above written.
_______________________
C. Bryce Capodieci, Member
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A Microbrewery

Rustik Br Brewing Company, Inc.

Get Back to Simple

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Figure 1 Total Net Profit after tax plus investor dividends.

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Rustik Br Brewing Company, a West Virginia C-Corporation is located and

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Contract brewing is not meant to be a direction of the company, merely an option to

Cost of using/renting brewing equipment

As a successful business, we want to be a part of intelligent and responsible business that is

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ENERGY EFFICIENCY & RENEWABLES:

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Boulder, CO -- August 8, 2011 - The Brewers Association, the trade association

Figure 2 Breweries in planning

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Figure 3 Beer is the #3 Beverage Category in the U.S.

Figure 4 Craft beer has the highest growth margin.

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Figure 6 Retailers pay more attention to craft beer

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The American Beer Company

Blue Ridge Beverage

Carenbauer Distributing Company

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Capitol Beverage Company

Elkins Distributing Company

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As mentioned previously, our primary distribution channel is self-distribution. Another

135 E Hillview Dr.

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The following are consultants/advisors to Rustik Br:

Bill Caruso Business and process engineering consultant

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Kelley Jones Safety Engineer consultant

Bill Kirk Water treatment systems

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MANAGEMENT AND OPERATION PLAN

Division of Time Number of Days per month

Figure 7 Division of Time Managing the Business

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Industry Association Membership

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Define the problem.

Minimize out of stock

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Beer Keg Size Weight

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Overall brewing process and procedures

15.5 gallon kegs will stack 8 per 4x4 pallet

Capacity Wholesale Price

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Figure 8 Brewery Floor Plan

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Morgantown Utility Board (MUB) will be contacted. To be an environmentally sound

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Quality Produce a high quality product at all times.