"That which does not kill us, makes us stronger"- Friedrich Nietzsche.

Turns out Nietzche was right.   SFEBB Is back, much stronger, and with an even more solid plan than before. 

Given all the global-trade changes we faced last month, the deadline for our raise has been extended.   

We’ve had to pause Chinese expansion, as it’s too dangerous to invest time and money in a country with which the US is on the brink of a trade war, but we have an equally exciting, if not even better option.  

As you remember, our plans for entering and expanding in India are retail-point oriented.  We are going to focus here -- on building a quick, low-cost, low-risk, highly responsive vehicle to jump into the heart of urban areas, gain a strong footing, and build our presence and brand out from there.  

Introducing, the “Hole”.

The “Hole” is the agile real-life implementation of the future, tech-savvy, and urban-engaging brewpub.  More accurately, a Hole is better described as a Nano-Brewpub. Exceptionally compact and highly automated, these outlets can be built out in spaces as small as 400 square feet (37 sqm).  They can be stood up for well under $100,000, and can be built out in a matter of weeks, not months.

Beautifully simple and franchise-friendly, they can easily penetrate the most exclusive and densely populated areas and rapidly expand.  Manpower efficient and driven by technology, they will be highly profitably. Automated production at each point of sale will enable us to launch a fresh, consistent, and high-quality urban brand from the ground up -- not only within each Hole’s four walls, but for the Schubros brand itself when it begins outside sales as well.

Holes will initially be rapidly built out and franchised within a single major metropolitan area, spreading to new geographies when management is comfortable with franchising and buildout operations.  In any given area, when the number of Holes reaches a critical mass, profits will be directed into building out regional breweries to support them via a “Hub and Spoke” system.
While most Holes will be franchised, a sizable percentage of these locations will be company owned.  Given the explosive growth of urban locations (geographic expansion, population growth, and real estate prices) within India and China, it is possible that SFEBB will amass significant retail outlet portfolios that will quickly become our most valuable asset. 

We will start Hole #1 here in the SF Bay Area, where we can keep a close eye on it’s buildout, operations, and initial expansions.  This will solidify our reputation as an SF-based company. After a couple further build-outs and rounds of refinement, SFEBB is into India, while Schubros will carry forward Hole expansion within the US.

In closing, this initiative will start us on our way to achieve our goal of becoming the “Starbucks of Beer” for the Indian and Asian-Urban market, but with a uniquely edgy and craft-beer-vibrant twist:  

• Small affordable locations, opening up the best areas possible
• Minimal startup requirements, lowering risk and spurring rapid expansion
• Low operating costs, ensuring rapid and strong profitability  
• Grassroots consumer-engagement, building a sustainable, retail and ‘off-the shelf’ brand
• Simplicity in model and product-offering, ensuring quality control and expandability
• Franchise-friendly model, creating a solid stream of licensee startup and ongoing royalty revenues
• Property-rich portfolio, amassing real-estate assets within the world’s Hottest property markets

So in closing, on behalf of Murty, Atul, Gillian, Darron, Mayumi and myself (our management team that I don't think has slept much since Trump's first China trade-tweet), we would like to thank everyone who has been following our trials and tribulations, and ensure you that SFEBB is Back On Track!

Thank you,

- The Full SFEBB Team