Blue Oak Brewing Company, LLC is a start-up

microbrewery in the SF bay area. We formed our

company in 2014 from Biotechnology roots, and

are leveraging our expertise to take advantage of

the exploding craft beer and probiotic beverage

market.

Our founder brings to the company

twenty years of biotech experience,

over ten years restaurant experience, and over ten years brewing.

About us

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Traction and Momentum

• Blue Oak Brewing Company won the best business plan award through the SBA in May 2014

• Website under development to offer training classes, brewing kits and merchandise for online purchase

• Currently pouring at least twice a month at public events, art shows, parties, and concerts for product marketing

• Mentored by current brewmasters of Marin Brewing Company Arne Johnson (Larkspur) and Independent Brewing Company Steve McDaniel (Oakland)

2

Market Opportunity

Craft Brewing domesticallyhas enjoyed a meteoric risein the last decade.

Our plan is to maximize the advantage of this opportunity.

Based on current growth trends, growth in Californiacould prove to be very lucrative.

Source: Brewer’s Association

3

Demand and Market OpportunityWe’ve sourced Temescal, Oakland to be a prime location due to the current gentrification occurring, along with established public transportation

4

Market Approach & Strategy:

We’re targeting an area that has seen rapid growth, and is projected to continue on this trajectory:

Our plan is to capitalizeon this boom by basingthe production facility and tap room in this area.

5

Current Products and Services:

Blue Oak Brewing Company offers a selection of award winning beers and probiotic sodas.To generate revenue during start-up phase,

we’ve been holding training workshops

to SF bay area locals on how to make your

own beer. Classes are held on weekends.

In addition, we sell home brewing kits with our own recipe included, as well as merchandise.

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Batch Brewing Production COGS

Produced/Available

13.00 kegs per batch

2250.00 pints per batch

6.00 batches a month

13500.00 pints per month

51.17 Kegs produced per month (% sales)

14.77 Growlers produced per month (% sales)

4725.00 Pints produced per month (% sales)

2.56 Kegs available per day open (20d/mo.)

0.74 Growlers available per day open (20d/mo.)

236.25 Pints available per day open (20d/mo.)

$5,463.15 AVG sales from single batch

$582.61 AVG cost to produce single batch (raw materials)

$1,392.61 AVG cost to produce single batch (all inclusive)

COGS w/all expenses COGS /raw materials

$0.32 $0.26

• COGS are calculated based on infrastructure in place where:

• Raw materials factors in only the cost of the grains, yeast, hops• All expenses factor in the utilities, labor, and lease cost per batch.

• Based on these values, we’ve extrapolated this table showing theproduction capacity for a 10 barrel system (315 Gallons), brewing 6 batches a month.

• All costs of goods sold are calculated on a per pint basis.

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Business Model: • Build an establishment that will create high-end craft beverages

for a growing market

• Take advantage of growing demographic within the Oakland region

• Collaboration with high end trendy food trucks – two markets

• Focus on California native themes, with seasonal products

• Live music, great local atmosphere

• Weekend workshops, training videos, and misc. merchandise

• Limited distribution, targeting >50% over the counter sales

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Team & Key Mentors• Owner and brewmaster: Alex Porter

• General Manager and Marketing Coordinator: Giovanna Fabiani

• (You or your company!)

Our current advisors and contractors include:

• Gwendolyn Wright; Economic consultant

• Arne Johnson; ( Brewmaster, Maring Brewing Company)

• Steve McDaniel; (Owner, Brewmaster, Independent Brewing Co.)

• Jesse Ferraris; (Owner, Brewmaster, Redwood Coast Cidery)

• Melissa Meyers; (Owner, Brewer, Good Hop Bottle Shop)

We’re currently in conversation with contractors, architects, and landscapers. Have set up accounts with equipment fabricators.

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Summary of five years projected P&L

Taxes, Interest,…

Net ProfitOperating Costs

EBITDASales

$0

$100,000

$200,000

$300,000

$400,000

$500,000

2015 2016 2017 20182019

Proforma Profit and Loss (Yearly)

Taxes, Interest, Depreciation Net Profit Operating Costs EBITDA Sales

Proforma Profit and Loss (Yearly) 2015 2016 2017 2018 2019

Sales $279,490 $386,181 $405,490 $425,764 $447,053

Operating Costs $103,707 $163,960 $167,157 $158,875 $157,971

EBITDA $142,584 $175,213 $191,324 $215,062 $234,663

Taxes, Interest, Depreciation $38,816 $58,112 $61,880 $58,432 $62,703

Net Profit $69,408 $72,812 $84,223 $103,170 $176,961

We’ve based our five year

projections using a very

conservative model of 50%

distribution and high

production costs.

If we can appropriate a

location close to BART

station or other transportation

hub, we estimate our sales

to be 50-100% higher than

these figures.

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Summary of Start-up CostsThese are our estimated build-

out costs if we settle on a space

That needs a complete build-

out. Our initial costs can be

greatly mitigated if we find a

location similar to that of a

restaurant going out of

business, or a commercial

space that already has the

flooring and drainage

requirements for a micro-

brewery.

Projected Start-up Costs

Initial Lease Payments and Deposits $12,000

Permit, Zoning, Licensing Costs $23,821

FF&E $103,160

Leasehold Improvements $54,000

Contractor Costs $30,000

Start-up Inventory $3,918

Insurance Costs $3,250

Miscellaneous Attorney Fees $2,000

Working Capital $50,000

Total Start-up Costs $282,149

Initial Lease Payments and

Deposits4%

Licensing Costs8%

FF&E37%

Leasehold Improvements

19%

Contractor Costs11%

Start-up Inventory

1%

Insurance Costs

1%

Miscellaneous Attorney Fees

1%

18%

Projected Start-up Costs

Working Capital

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Projected timeline of start-up

CompetitionOur competition in the craft beer sector as a whole is growing. however, unlike other industries, the craft beer market has a lot of

Room for growth.

California’s bay area craft beer market enjoys the luxury of a high

median income, and a large percentage of the population being

food and beverages aficionados and small business advocates.

Our industry competitors are actually

very collaborative, as we understand

that more good product representing

our sector means more business for us.

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Investment:We are seeking funding for our start-up capital. Currently, we can

provide great incentives for equity investors.

To supplement these funds, we are launching a crowdfunding

campaign. Additionally, we have our own saving and personal loans

to cover any unforeseen operating costs during the start-up phase.

Our business is formed as an LLC.We encourage potential investors to please take a look at our 5 year business plan with our projected financial model:

Text portion: http://bit.ly/1FKbo5b

Financial portion: http://bit.ly/1tAwc9y

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Summary of Our ApproachIn summary:

We’re confident

that building and operating

a microbrewery in Oakland

will be a very lucrative

prospect. With gentrification

in full upswing, a growing

craft beer market, and a

high quality product -

will be prove to be a

fantastic investment

opportunity!

Thank you!

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