Contributing Great Delight & Satisfaction to The World.

Business Plan Summary

It started with founder Joshua’s impossible quest for an alcoholic beverage that did not compromise his commitment to fitness and health or his requirement for excellent taste.  Co-founder and fermentation wizard Tommy then produced a promising prototype; probiotic, gluten-free, over 8% alcohol, and delicious.  Then it all clicked into place when Joshua realized he had the ultimate brand, a health-conscious alcohol brand based on his wife’s adorable rabbit, the mediating, levitating Dr Hops.

The product is truly divine, easy to drink and awesomely fresh.  We use only whole, certified organic ingredients, unless there are higher quality non-certified organic alternatives.  All of our kombucha beers are naturally fermented, first by our fiercely probiotic kombucha culture, and then by additional alcohol-producing yeasts.  We’ve developed an alcohol-tolerant “house” kombucha strain that’s rich with lactobacillus, a health-enhancing probiotic that makes our beverages intriguingly tart.  We’ve also devised a zero-water-waste water filtration method that removes all chorine and fluoride from our most important ingredient while leaving critical minerals intact.  The end result is amazing, pleasing to the taste and good on the gut.  It’s probiotic, gluten-free, paleo-friendly, and delightful to drink.

People of many tastes have already voiced their love for this extraordinary product.  Those who already love kombucha simply freak out when they discover Dr Hops, as there’s just no other way they would rather have their alcohol.  People who have never tried kombucha before find Dr Hops delightful and easy to drink.  And even those who claim that they don’t like kombucha typically love Dr Hops.  Millennials of all kinds, in particular, love the branding, the product, and the very idea itself.  Let’s make alcohol healthy, and let’s make it taste absolutely amazing too!

The market is screaming for this!  Dollar sales in Total US Multi Outlet + Convenience channels (IRi):

  • Craft Beer: US market now $4 billion, up over 38% in the last three years
  • Kombucha: US market now $240 million, up 237% in the last three years
  • Probiotic Claims: US market now $2.3 billion, up over 11% in the last three years
  • Organic Claims: US market now $11.9 billion, up over 56% in the last three years
  • Gluten-Free Claims: US market now almost $20 billion, up 63.5% in the last three years
  • Millennials: Total US All Outlets (IRi) sales up $10.8 billion vs. a year ago (compared to $2.6 billion total increase across all generations) and millennials “are seeking new flavors and reaching for premium beverages and healthy alternatives” – Dan Wandel, expert beer strategist

Our bay area location keeps us connected to these and other cutting-edge developments in food, beverage, business, booze, and culture.  This empowers our commitment to superior products and a superior brand.  The whole world looks to California for what's hot, especially the great bay area!

Dr Hops currently leases 1000 Sq Ft of industrial space in San Leandro, just outside of Oakland.  This space is currently being used for product and business development, and is also now licensed for wholesale beer distribution.  For the next 1-2 years we will continue developing product here, get our production line licensed, and also contract an established brewer in the area to produce the majority of our volume.  The contract arrangement allows us to produce significant volume in a relatively short period of time and with a relatively small initial investment.  In our case it is also quite easily scale-able and allows us to keep focused on development, rather than on production.  We’ve already negotiated the contract and are confident that the production partnership is a good one.

Distribution will be accomplished through three pathways.  First, we will use a “traditional” beer distributor to get Dr Hops out to a wide array of package retailers and cafes/bars.  We already have the bay area’s most passionate and knowledgeable kombucha and kombucha beer distributor ready to go.  Second, for key relationship building, product education, and better profitability, we will distribute ourselves.  Our lease and location are both good for this and we have a fully branded delivery vehicle ready to rock and roll.  Third, we will use a few specialty distributors to get Dr Hops into major tech companies, co-working spaces, and other hot bay area workplaces.  This is a thriving market here and we intend to hit it!

By optimizing our two-headed production strategy and our multiple distribution pathways, we expect to operate with at least 20% net margins during this initial operational phase.  However, much better margins and a far better customer experience are available in phase two once we have built our iconic bay area brewery and series of tap rooms.  Our facilities will be very unique, based around yoga, herbs, community, sensory stimulation, and probiotic fermentation.  The raise for phase two will determine our value and bring payback or equity to our precious seed-stage investors.  That could be you!

The $800,000 we’re raising here will be used as follows:

  • $260,000 for people
  • $250,000 for production
  • $290,000 for sales and marketing

We currently have 6 products ready for production, three in the 8-10% alcohol range and three in the 5-6% range.  They are all named after rabbits.  Our initial packaging will 500 ML bottles and 1/6 barrel kegs.  We will be at the high end of beer prices, competitive for kombucha and quite a bit less than barrel-aged sours.  Our transcendent rabbit artwork will be the consistent focus of our imagery.  The rabbit is rumored to have stolen the formula for Dr Hops Kombucha Beer from the Illuminati and is now on the run, committed to making this magical elixir available throughout the world.

Ultimately, we are creating the world’s most delightful and health-conscious alcoholic beverage brand.  This next phase is the first major step on that extraordinary journey.  We would be honored and thrilled to have you along.

Please contact us now if you're interested in investing or have additional questions.

See the Term Sheet here.