SaaS Interviews with CEOs, Startups, Founders
He Sells Craft Beer On Demand, $250k in 2015, $2m in 2016, EP 259: Charlie Mulligan
05 Jun 2016
Chapter 1: What is the main topic discussed in this episode?
This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.
Chapter 2: How does BrewPublik match craft beer to customer taste profiles?
You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark.
Chapter 3: What pricing model does BrewPublik use for craft beer delivery?
And I'm your host, Nathan Latka. Top Tribe, you know I don't have a lot of time to waste. That's why I use FreshBooks to send out invoices and make sure I'm collecting my money. To get your free month, go to nathanlatka.com forward slash FreshBooks and enter the top in the How Did You Hear About Us section. Okay, Top Tribe, this week's winner of the $100 is Zach Ferron.
He's a 22-year-old Apple employee, and he's listening to the show and loving it.
Chapter 4: How did BrewPublik achieve $275k in revenue in its first year?
For your chance to win $100 every Monday, simply subscribe to the podcast on iTunes now, and then text the word NATHAN to 33444 to prove that you did it to enter. Good morning, Top Tribe. You're listening to episode 259. And coming up tomorrow morning, bright and early, you're going to hear from Drew Taylor. And I ask him, will this 43-year-old win the 3D printing industry?
Tune in tomorrow morning, bright and early, to find out.
right top tribe good morning our guest this morning is charlie mulligan and he's the co-founder of brew public he says he's going to be and they're going to be the way that everybody buys craft beer starting with the office they provide streamlined premium catering service delivering craft beer to offices in the bay area and beyond charlie are you ready to take us to the top absolutely all right craft beer i love craft beer tell me how it works and how you make money
Yeah, absolutely.
Chapter 5: What factors influence BrewPublik's market expansion strategy?
So we are experts in curating craft beer, both for offices and delivering it right to your house, right? So we've got an algorithm that selects from over 3000 different types of craft beer from all over the world. And what we do is regardless of the context, we match beer selections to your personal taste profile.
So whether you're an office and you're doing a survey with a bunch of your coworkers or whether you're just getting a delivery to your home, you tell us exactly what you like to drink, what you've tried before, what you like, what you don't like. And then based off of that, our sophisticated technology matches you with new craft beers that you've never tried before.
And then we get them to you either in your office or in your home.
So I'm sitting in the office tomorrow for lunch. We have a big team meeting.
Chapter 6: How does BrewPublik plan to disrupt the beer industry?
I want 24 beers of craft beer after the meeting. I'm in somewhere downtown San Francisco. What's it cost me?
Yeah. So that's going to run you for a case of beer, 75 bucks.
Okay.
Chapter 7: What are BrewPublik's revenue projections for 2016?
That includes delivery and the beer and it's all premium high quality. How much is in a case? 24 bottles.
24 bottles. Okay. So we're paying about $3 a bottle from shipping to delivery.
Yep.
And drinking.
Chapter 8: What valuation does BrewPublik aim for in a potential sale?
Don't forget that. And drinking. All right. 24 bottles. Okay, cool. And so is this a subscription service or people buy once each time whenever they want it?
Yeah, so that's a good question. So we do have like for the for the office environment, it's much more kind of a one off order type of thing. Now, there's a lot of offices that have a, you know, a fridge that they want stocked or kegs that they want refreshed on a regular basis. And so we kind of arrange that for them on a
subscription basis and then for um we haven't launched this in the bay area but for those who have like a delivery service to their home that is a membership model where you pay a monthly fees kind of similar to netflix and then per set number of beer and then you can order additional amounts a la carte on top of that okay so let's back up for a second charlie what year did you guys found the business in 2014 okay a year old okay nice and um and so in 2015 what was total top line revenue
So we did 275,000 in 2015. Okay.
And how many, how many cases or bottles of beer was that total delivered?
Ooh, that's a really good question. I actually don't have that off the top of my head.
Is it about 275,000 divided by three ish? Yeah, you could go with that. Since 24 bottles is 75 bucks, I just figure. Okay, interesting. Call it somewhere around like 80,000-ish bottles. Okay, cool. And is most of that, on that $225,000 in revenue, what are margins like? Do you guys make any money on that?
Yeah, absolutely. Um, we, we typically make about 50% margin before delivery and then after delivery, um, it's between 35 and 40%.
So is it, so gross margins, 50% net margins, 30%, 35, 35 net margin. Okay. So on, on a hundred thousand, you keep 35,000 on. So on two 75, you're keeping somewhere around, you know, about a hundred grand ish in a, in bottom line. Okay. And then, so what do you do with that capital? Do you just let it build up in the bank account or are you reinvesting?
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