Rentsch Beer was founded by father and son David and Andrew Rentschler.
The inspiration for opening a brewery began in Europe where Andrew was studying German. He also 'studied' biergartens, where he noticed that the focus was enjoying the quality of local craft beers. In addition, they provided a place for friends and family to gather and leisurely hang out and enjoy each others’ company. Andrew's family met him in Europe during a break in his studies, and he shared his concept with them. It was at a biergarten that the dream for Rentsch Brewery began.
Why are we doing this fundraising? Well, if you’ve been to the brewery on the weekends, or any of the restaurants in the central Texas area, you’ll see our beers are doing quite well. Our customers keep buying all we can make! We have been brewing at capacity since we have opened last August 29, and we’ve been presented with opportunities from distributors to carry our beers even further.
To distribute our beer out further, we need to move beyond our current brewing and fermentation system and increase their sizes, and of course get a canning line. Fortunately, brewing equipment cost is based more upon the amount of stainless steel, rather than its volume of beer, so a system 10X in size may only be 4X in cost. Going bigger will also improve the quality of our beer as larger batches are more stable, and it reduces the costs as we will buying raw materials in larger quantities.
In order to capitalize on this growth, we want to grow the brewery capacity from approximately 1,000 barrels per year to about 10,000 barrels per year (a barrel of beer is 31 gallons, 2 kegs, about 120 pints, 165 cans).
Use of Funds:
- $100,000 as down payment to finance about $600,000 in new brewing, fermentation and canning equipment
- $200,000 to turn the rest of our building into a brewery (sloped sealed floors, plumbing, electrical, control wiring, bathrooms, lab, office, etc.)
- $50,000 to build-out our new taproom
- $50,000 to address marketing and sales, part of this is down payments on sales vehicle and a delivery vehicle
- $300,000 to acquire grain, hops, yeast and cans
- $150,000 to retire our existing debt
- $50,000 in fees involved with the fundraiser
- $100,000 in reserve for ‘rainy days’ (actually, when it is raining, beer sales go down).
The funding opportunity will be 2 types:
- A membership into our LLC through equity. This is for accredited investors only. We want to raise $500,000. 1% membership is $50,000. Minimum investment is $10,000. We will be providing distributions to members.
- An opportunity to lend to the brewery. We will pay back notes with top-line 5% of our revenue until the lenders receive 2X of what they loaned.
What’s the risk?
- We’ve proven we can make great beer, and sales are way up, and our demand is 10X our supply, so a risk is not meeting demand and customers (direct and indirect) go elsewhere for their beer (A – why we are doing this fund raise to increase our capacity)
- Loss of production, from power outage, brewing issues, etc. (A- we will have redundant critical systems, insurance, and computer controls to mitigate these risks)
- Brewing industry law changes (A- so far they have been pro craft beer, but we monitor Texas laws and advocate and lobby through our Texas Craft Brewers Guild)
- People stop drinking beer (A- really a risk?)