In Episode 259, we meet Charlie Mulligan. Charlie is the CEO and co-founder of BrewPublik, a curated craft beer delivery service with offices in Charlotte, NC and San Francisco, CA.
How does BrewPublik work and how does it make money?
“We are experts in curating craft beer!” Charlie explains.
Founded in 2014 and just over a year old, BrewPublik has “an algorithm that selects from over 3k different types of craft beers from all over the world” that matches “beer selections to your personal taste profile” and that will deliver it to “either your office or your home.”
Charlie goes on to explain that BrewPublik is “subscription based” service however “for the office environment it’s much more of a one off order type of thing” but that they do have some offices that “have kegs that they want refreshed on a regular basis and we arrange that for them on a subscription basis.”
Furthermore for home delivery, Charlie explains “that is a membership model where you pay a monthly fee kind of similar to Netflix, for a set number of beer(s) and then you can order additional amounts a la carte on top of that.”
With this model, Charlie says that in 2015 BrewPublik’s top line revenue was “$275k” with “50% margin before delivery and then after delivery it’s between 35-40%.”
So with a $100k in cash after their first year, BrewPublik is using their capital to “fund expanding coast to coast” as BrewPublik is now in Charlotte, NC, Raliegh, NC, Nashville, TN & San Francisco, CA. And with this aggressive expansion, Charlie is expecting their 2016 total revenue to be “hopefully between $1.5 to $2million.”
How does BrewPublik choose cities to expand to?
“We have a really clean cut strategy for that,” Charlie explains.
With a B2B service aspect to their business by delivering to offices, there “really no competitors playing in the beer catering space” and that is a very easy way for BrewPublik to be “operating cash flow positive in a market very, very quickly; like within 3 months or less.”
With baseline demographics and metrics, anything from age to average income plays a key role in their decision-making. Another major factor is the number of breweries a city has.
BrewPublik plans to be in “10 (new) markets by 2016.”
Here are the links to get more information:
- For more on BrewPublik, go to www.brewpublik.com
- For more on Charlie Mulligan, you can find him on Twitter @cincharge