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Nano pitch
Did you know that packaging and logistics account for 50% of the beer industry’s environmental footprint? At Streetbrewers, we’re tackling this challenge by decentralizing beer production beyond the microbrewery level.
Our connectedplug-and-play brewing system enables small-scale beer production (100L-250L/week) with no brewing expertise required and minimal investment, empowering average-sized HoReCa establishments to transform into profitable brewpubs where beer is produced and consumed locally.
With 50.000 new brewpubs expected in Europe over the next decade, we’re targeting 1% of this market. In our first funding round, we raised €200K, allowing us to implement our advanced 4.0 cloud monitoring at the renowned Orval Trappist brewery and secure our first two sales. Now, we’re raising €500K (in 2 steps) to support our financial structuring, accelerate sales, and achieve breakeven by 2027.
The idea
Streetbrewers is evolving in the craft beer market. Forty percent of this market is in the US, and another 40% is in the EU.
The EU follows US trends with a ten-year delay. We can observe this pattern in the emergence and decline of microbreweries. This decline is currently happening in Belgium, confirming that this business model is no longer viable.
It is time for the next generation : BREWPUBS.
Brewpubs are a smaller version of microbreweries, representing a logical shift toward more local and authentic production. Everything is brewed and consumed on-site.
The brewpub model is also environmentally friendly, as it eliminates packaging and logistics, which account for 50% of CO₂ emissions.
Brewpubs emerged in the US ten years ago and now produce as much beer as microbreweries. Over the next ten years, 50,000 brewpubs are expected to appear in the EU (cfr market) but where are they?
There is an explanation. If we extrapolate the brewery size factor (2.5) between the US and the EU to brewpubs, we find that the typical EU brewpub would be so small that its production could not cover the cost of a brewer.
So far, because brewing requires specialized skills, it's usually the brewery that incorporates a café into its operations. To further decentralize production, we need to reverse this approach and enable non brewers to participate in brewing smaller productions. Streetbrewers aims to facilitate the integration of the brewery into the café, making it a natural extension of the hospitality experience.
Challenges Facing Horeca:
Loss and volatility of customers (a decrease in the number of customers & unpredictable fluctuations in customer behavior, such as irregular visits, inconsistent loyalty, or varying purchase patterns, making it difficult for the business to predict demand and sustain growth)
Lack of expertise, skilled personnel difficult to find and keep
Space and resource constraints (horeca businesses face reduced margins due to rising costs of labor and raw materials and decreasing consumer purchasing power)
Solution Provided by Streetbrewers
Streetbrewers aims to facilitate the integration of brewing into the horeca sector, targeting a typical production of 120 liters per week (50 HL/year)
Streetbrewers automates the complex and repetitive tasks and supports customers with predictive models : the brewery can be operated by unskilled staff, requiring only simple interventions such as loading ingredients and handling waste.
Streetbrewers offers a modular installations with a limited investment barrier
Streetbrewers develops a series of interactive app's around the brewery that will Increase engagement and enjoyment, involving managers, operators, and customers at various levels.
Decentralized production does raise the cost per liter (due to reduced economies of scale in production tools), but this is offset by:
Combining production, sales, and distribution margins within the brewpub
Avoiding bottling and distribution, which account for 50% of both capex and opex.
This allows brewpubs to maintain a competitive cost price of €3/L. Additionally, Streetbrewers offers rental solutions to spread expenses over time.
The cherry on top: the decentralized production approach is sustainable because:
It promotes local economic re-anchoring.
It cuts CO2 emissions in half, with a single brewpub equating to 100 trees in terms of CO2 savings.
Rather than exchanging bottles globally, the focus shifts to exchanging recipes, which are brewed locally and traded on an online marketplace, Spoti Brewify.
Concept
Streetbrewers developed a concept based on 4 pillars with complementary revenue streams.
1)the street-scale brewery itself. With the starter set of 50k€ our client can brew 120L/week that will cost him 3€/liter. -> Modular approach with recurrent sales.
2)the cloud infrastructure, designed to facilitate product evolution and scalability since the programs are no longer embedded. Our IP will be the advance in data gathered in the cloud -> Software fees (300€/month)
3)our community from which our future clients will emerge -> advertising fees
4)the secured online marketplace, similar to Spotify, where clients can buy, sell, and rent beer recipes worldwide to be brewed locally on our standard brewery. -> transaction fees
The brewery consists of:
1 standard hot block, capable of preparing 4 hot brews of 30 liters each in series (producing wort from water, malts, and hops), which are then sent to
1 standard cold block, comprising 2 fermenters operating alternately. The worts from the various hot brews combine to form a 120-liter cold brew, which is fermented using yeast.
We initially sell a standard starter set consisting of one hot block and one cold block. Each additional cold block increases production capacity by 120 liters per week, while maintaining the same hot block.
Selling price of the starter set hardware : 50k€
Selling price of the software for the starter set : 300k€/month
We estimate that 1 in 2 customers will opt to increase their production capacity by 120 liters per week with the purchase of an extra cold block set approximately 18 months after purchasing the starter set. This introduces an element of recurrence for hardware sales, as customers will require additional cold blocks to expand their brewing capacity.
Selling price of extra cold bloc set : 20k€
Selling price of the software of extra cold bloc set : 150k€/month
Innovations
Our nano-brewery stands out as the only brewery of this production scale with a uniquely low barrier to entry—both financially and in terms of expertise. It incorporates the following innovative features:
Industrial automation, including cleaning, ensuring robustness and quality.
Portable and compact, minimizing space requirements.
User-friendly, even for novice brewers, with simple tasks like adding or removing ingredients.
Reproducibility, across all Streetbrewers community breweries.
Scalable capacity, ranging from pico (5 hl/year) to micro (500 hl/year) breweries.
Modular and upgradable, integrating the latest practices and knowledge.
Enhanced customer experience, through thoughtful design and interactive applications.
Credibility
Our credibility has evolved from the garage to the client’s place with 2 sales. It seriously increased since we are consultant at the renown Orval Trappist brewery.
