# Hops and Grain

Gold Medal winning craft brewery in Austin, Texas

## Elevator pitch
Hops & Grain is a local Texas brewery. We brew and package all of our beers on-site and sell them throughout Austin and the surrounding areas. After 5 years of expansion in our current facility, we have finally reached max capacity and are now looking to double our capacity with a new brewery. The investment will be in a new LLC to develop the new tap room and brewery in San Marcos, TX.

- Canonical URL: https://wefunder.com/hopsandgrain
- Entity ID: wefunder:company:9560
- Last updated: 2026-06-12T05:00:03Z
- Generated at: 2026-06-13T03:12:18Z

## Quick facts
- 2015 Revenue of first tap house: $1,916,091.
- Investment: New tap room / brewery right next to Texas State Univ. (30,000 students).
- Capacity of new facility: 20,000 barrels.
- Powered 100% by wind energy.

## Active fundraises
- wefunder:fundraise:5542: 4(a)(6) successful (USD)

## FAQ
1. **I couldn't find it in here, What was your 2015 Gross Revenue? Also could you address some of your competitive advantages ?**
   - Hello John, 2015 Revenue for our Austin facility was right at $2M. Competitive advantages for us lie in our product quality, maintained by a state of the art full time on-site laboratory for beer analysis. We have a strong, purpose driven mission and our commitment to not only community involvement but also being a socially conscious and culturally relevant brand have helped us succeed in Austin. We currently distribute beer to San Marcos and the surrounding areas so we already have strong br...
2. **Two questions: Can you define what your gross revenue is? Both wholesale and on-site? Additionally, you mention margins grew from 33% to 78% above but then state margins are 4-8% wholesale and 60-65% on-site. Curious if you can explain this.**
   - In 2015 our gross revenue at our Austin brewery was $2M. 25% of our revenue was generated in our tasting room and the other 75% through wholesale distribution. Wholesale margins are 4-8% and with some recent city permitting allowing us to sell pints of beer on-site instead of charging an admission and giving away free samples our margin for on-site sales has grown to 78%
3. **Where is the location of your new brew house (cross streets)? I know that area can change very quickly.**
   - We are still negotiating lease terms but the location will most likely be on S Edward Gary St
4. **Can you share anything more about the area (maybe the cross streets) that you're looking for the new brewery? I know that area can be hit/miss so I want to be sure it's in a great location.**
   - We are still negotiating lease terms but are focusing around the S Edward Gary St. area
5. **How soon would you expect someone to receive their investment back?**
   - We are projecting that it should be around 5-6 years to receive the 2x return

## Team
- Sheila Garcia (Marketing Manager)
- Libby Spencer (Tap Room Manager)
- William Bearden (Sales Manager)
- Bob Langner (Operations Manager)
- Bob Galligan (Coffee | Tea | Education Manager)
- Josh Hare (CEO)

## Recent posts
- Hop on a Call with Hops and Grain's Founder Josh Hare (2017-07-27T22:47:23Z)

## Q&A
- Q: How soon would you expect someone to receive their investment back?
  - A: We are projecting that it should be around 5-6 years to receive the 2x return
- Q: I’m afraid all our $ investment will be lost in San Marcos and the recovery is doubtful! The H&G Brand placement seems to be permanently replaced in local stores. The H&B Brand is joining the ranks of Falstaff, Hamm’s and Schlitz
- Q: Looking at your Form C, you will make payments annually after one year, with the right to defer up to one annual payments. And this is made only to Hops and Grain Production, LLC (an entity with no current revenues), it is not supported by revenues from Hops and Grain LLC. Do I have that right? Who will actually own the new tap room, H&G Production LLC or H&G LLC? Where will H&G Production get its working capital to pay operating expenses? How will H&G Production actually generate revenue, by selling to consumers, or by selling internally to H&G LLC (i.e. H&G can set the sales price)?
  - A: Hops and Grain Production LLC is the operating entity for the San Marcos facility. We will be producing the same beers at both facilities so the pricing structure is already set. This investment will be paid back from the revenues from the San Marcos facility. Our fundraising for this new facility will include all equipment costs as well as working capitol and we will generate revenue through sales to our distributor and sales in our tasting room
- Q: Do you have an existing balance sheet? Also, is the 10% allocation of GR from all operations, or solely the San Marcos location?
- Q: first, let me say that green house is a great beer. second, can you describe the repayment terms? will they be quarterly? semi-annual? annual? also, will the "investment multiplier" come into effect after the initial principal is repaid in full or concurrently? for example, if you have gross revenue of $1MM in one year, will you only pay $100k to the investors and then the multiplier in later periods or $100k of principal plus the multiplier?
  - A: Hello Daniel, glad to hear that you enjoy our Greenhouse IPA! The repayment terms will be 10% of gross revenue (no multiplier, just 10% of gross annually) until all investors have received a 2x return. For instance, if we stay at $3M in gross revenue, each year we will distribute $300,000 until we have repaid the $2M total. Distributions will be made annually.
- Q: Looks like you're borrowing money here. Why not offer equity (or future equity under a SAFE agreement) as for myself the appeal of start-up investing is the potential future value, for example if you began franchising.
- Q: I reached out to WeFunder for Form 8949. I think Josh got his bag and left us hanging.
- Q: I would like to have an update on when payouts on our investment will begin. Loan agreement says the payout start date was 9/12/2017 ans so far we've received nothing. I would like to know what is going on.
- Q: Hi Josh, any updates would be appreciated.
- Q: Hello - Any update on the projected opening date of the San Marcos facility? Thanks! Mary Matthews
  - A: Hello Mary, I just posted an update on the H&G business page, let me know if you aren't able to see those as we had some issues with our page over the summer. We are anticipating opening in early 2018
- Q: One of the risks you have identified is that the CEO has a full time job and cannot devote 100% of his time to the business. Any plans on this changing?
  - A: Some clarification on that. As the CEO my current full time job is at our original brewery in Austin and I'll be serving as CEO for both facilities once San Marcos is open. We will be filling out our executive team to help free up some of my time to focus on building and opening the new brewery.
- Q: Is the 2X return on investment a cap, or is there the potential for additional returns?
  - A: 2x is the cap
- Q: If the investment is not paid back, is there a collateral on your assets?
  - A: That is correct, it is ultimately a loan secured by assets
- Q: Now that H&G beers are showing up in stores again (which I’m glad to see) can we get some kind of update or communication?
- Q: Hi Josh, any news since the July '20 update?