Barksdale's brewery
Introduction:
Barksdale’s Brewing Company has been operating a business of beer in the Midwest region for nearly three decades. The company located in the State of Missouri. The company has obtained the license to sell beer to the wholesalers and distributors operating in the Missouri.
Barksdale’s sells four different beers throughout the year: Barksdale’s Amber Ale, Barksdale’s Pale Ale, Barksdale’s Weizenbier and Barksdale's Pilsner. The brewery company also offers at least four seasonal Beers available on draft at local St. Louis bars for a limited time. In addition, Patrick Barksdale is developing a new beer -- dubbed Barksdale's Indian red -- to be released sometime in the near future.
The sales of the brewery company have been increasing constantly over the past five years by the 60 percentage. The brewery company wants to capitalist the recent boom in the microbrewery by expanding into the education market especially in college market.
According to PatrickBarksdale,Columbia is an attractive market for his business because of its young demographic.Patrick has an opportunity that his younger brother, Jimmy, a recent graduate from the University of Missouri - Columbia with an MBA degree, will oversee the Columbian operations of the company. MrPatrick figured that since many of the students in Columbia come from the St. Louis area, therefore they will already be familiar with the Barksdale brand name. In addition, a sales representative will be hired to promote the beer on campus. The marketing plan of the brewery company will focus on advertising on the University’s local radio station.This also includes handing out flyers that provides the details of the various beers and the provision of special discounts during home football and basketball games.
Barksdale’s will act as a wholesaler to retailers and consumers rather than selling directly through carryout or a tap-room restaurant. Its beers are available on tap at local taverns and in bottled form at supermarket chains, convenience stores, gas stations and liquor stores throughout the St. Louis metropolitan area.
Background:
On March 23, 2014, Sam Smith, Riverboat Bancshares (RB)’s Vice President of the Commercial Lending madea visit to Patrick Barksdale, the President and CEO of Barksdale’s Brewery Company. Currently, the company’s bank is Chemical Bank, but the company is not happy with it and is considering switching to another bank.
The brewery company needs $900,000 mortgage loan, which is to be mortgaged on the new land and building of the company, a $200,000 term loan which is to be used in the purchase of the machinery and equipment for manufacturing and $200,000 line of credit to finance the working capital requirements of the company. All of this credit acquisition is used to open a new microbrewery in Columbia, Missouri.
Mr. Barksdale has completed the process of sending bids to the key vendors of the equipments, inventories, building renovation and labour. The cost figures associated with the development of new microbrewery have been identified and figured into the business plan. A projected contract has been written for the purchase of real estate however, it is not yet signed by the top management of the company........................
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