Replies to post #70237 on BrewBilt Brewing Co (BRBL)

[downdraft]

The membership approach is like a super-bonus of revenues that I never really understood before. That's revenue on top of what I was just hoping for that the tap room could bring. This snippet from the Aug. 31, 2022 news release is quite encouraging...

"The company signed a 5-year lease to build and operate its own Tap-Room and outdoor beer garden in Nevada City, California. This allows the company to sell and champion its product line of craft beers. The margins on tap-room sales increased 300% compared to margins on retail sales to other customers. To put this in perspective, the company CoG for each 20BBL of beer is $4,500. The retail sales are $8,000 and the tap-room sales are $27,000. 20BBL is equivalent to 5,000 pints of beer."

Essentially, gross profits at the tap room for 5,000 pints of beer would be $27,000 minus the cost of goods sold ($4,500), or $22,500. If the tap room is open 6 days per week, say 25 days per months, that means they would need to sell 200 pints per day on average to meet those numbers. Taking a guess, let's say each customer drinks 2 pints every time they show up. That would require 100 customers per day, or 10 customers per hour over the course of a 10 hour work day.

Add some additional food and beverage revenue to that as the tap room is designed a family place, then profit margins could spike pretty quickly. One way or another I'm confident the Phase II brewery will get built. Maybe they'll start in the spring as I had hoped but the Federal Reserve keeps delaying their forecast for a decrease in interest rates, so construction loans might take another quarter or two before they drop low enough to start building the Phase II brewery.

For me it doesn't matter; it's a long-term play because even though the company has had to use toxic financing to get to this state, as all OTC companies do, BRBL still always manages to make forward progress one way or another. They have a legitimate manufacturing operation, their first brewery, and very soon their first tap room.