{"id":2727,"date":"2015-07-21T06:00:12","date_gmt":"2015-07-21T11:00:12","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=2727"},"modified":"2015-07-19T11:06:04","modified_gmt":"2015-07-19T16:06:04","slug":"in-any-investment-you-expect-to-have-fun-and-make-money","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=2727","title":{"rendered":"In any investment, you expect to have fun and make money."},"content":{"rendered":"

\"Old<\/a>As a young District Manager in the early 1970s, Lone Star Brewing Co. relocated me to Lubbock, Texas.\u00a0 The market I had been assigned to worked with distributorships in Amarillo, El Paso, Midland\/Odessa, San Angelo, Abilene and Wichita Falls.\u00a0 There were also operations in smaller markets including Brownwood, Pecos and Priddy, Texas!<\/p>\n

The distributor in Brownwood, in addition to selling Lone Star, also sold Miller and Pearl and some smaller brands. This business plan made sense.\u00a0 On the other had in Pecos, which was nothing more than a gas stop on the highway to El Paso in the middle of West Texas, that distributor also sold AB products!\u00a0 Outside of the rest stop, Pecos was known for oil fields, cattle and watermelon fields!\u00a0 That is it!<\/p>\n

The Pecos wholesaler was a cattle rancher that ran his operation about three days a week.\u00a0 It was a little puzzling how both AB and Lone Star had a distributor here; however, what was really challenging was figuring out why Lone Star had a distributor in Priddy?<\/p>\n

In Pecos there was one hotel, several miscellaneous buildings, and a couple of restaurants, but Priddy, located a little over 10 miles east of Brownwood, consisted only of a gas station which doubled as a general store.\u00a0 That was the entire town.\u00a0 There was a small barn behind the general store that\u00a0housed a two bay-beer\u00a0truck painted with the Lone Star logo and a tractor. The inventory consisted of two pallets of beer!<\/p>\n

One would think that since Priddy was only 1o miles or so from Brownwood that it would have been in Brownwood\u2019s footprint.\u00a0 That was not the case. It was not long before I learned that all over Texas, especially in south Texas,\u00a0Lone Star and Pearl had operations in many of these small, rural markets.<\/p>\n

After World War II, as Lone Star was experiencing rapid growth, the Vice President of Sales was awarding distributorships.\u00a0 As it turns out, the VP was asking $5,000 for rights to sell the beer.\u00a0 He then in turn, purchased Lone Star stock.\u00a0 Soon he was the second largest stockholder in the brewery, only behind the founder and owner, Harry Jersig.<\/p>\n

While the VP was enhancing his personal wealth and position at the brewery, he was enabling an unintended effective marketing strategy.\u00a0 By establishing small, local breweries in these communities where everyone knew everyone, the locals supported the beer.\u00a0 Lone Star enjoyed great success with this model during the 50s and 60s.<\/p>\n

To some degree, the craft beer industry’s success is similar to Lone Star\u2019s success.\u00a0 Breweries in local communities rally and connect while supporting their home-grown brands.<\/p>\n

Even now, some craft breweries are selling equity to the public.\u00a0 In Madison, Wisc. a three year old brewery, MobCraft, recently took advantage of a new law to raise $67,000 in growth capital from 52 Wisconsin residents, nearly all of them first-time business investors.\u00a0 Only two percent was available for purchase at a minimum investment of $525.\u00a0 Buyers got a detailed, 13 page disclosure documents delineating the company’s history, financial background and growth plans, in addition to a risk analysis as reported\u00a0in the New York Times.<\/em><\/p>\n

The question becomes: will this model continue to become more and more available to locals?\u00a0 As in any investments, you expect to have fun and make money…..<\/p>\n

Beer Fodder; IPad Beer at Hofbraeuhaus – Simon Pierro – YouTube<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

As a young District Manager in the early 1970s, Lone Star Brewing Co. relocated me to Lubbock, Texas.\u00a0 The market I had been assigned to worked with distributorships in Amarillo, El Paso, Midland\/Odessa, San Angelo, Abilene and Wichita Falls.\u00a0 There were also operations in smaller markets including Brownwood, Pecos and Priddy, Texas! The distributor in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-HZ","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2727"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2727"}],"version-history":[{"count":11,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2727\/revisions"}],"predecessor-version":[{"id":2765,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2727\/revisions\/2765"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}