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HomeMy WebLinkAboutEDL Humm Kombucha Briefing PaperBRIEFING PAPER FOR Humm Kombucha Request for Deschutes County Forgivable Loan June 12, 2014 Number of Employees: 8 Company Request: $ 50,000 EDCO Recommendation: $ 50,000 Proposed Job Creation by end of 2016: 25 full-time family wage jobs Average Pay for New Employees (all positions, excluding commissions): $ 36,782 Capital Investment: $4,000,000 Industry: Manufacturing, Brewing Website: www.hummkombucha.com Company Background: Humm Kombucha (formerly Kombucha Mama) brews kombucha beverages. Kombucha is a raw, fermented, and naturally carbonated tea loaded with probiotics and B vitamins. The family has been brewing kombucha for over 20 years as the recipe was passed down from a mother to a son, from that son to his wife and from that wife to her best friend. In February of 2009 Michelle Plantenberg and Jamie Danek started a producing Kombucha in Michelle’s kitchen. They brewed one gallon at a time to start and in March they sold the first two gallons. Demand quickly grew to the point where they were no longer able to meet the demand from the kitchen. Total sales that year were $28,000. In 2010 they moved into the first commercial production facility. Sales tripled to $82,000 while cost of goods and expenses decreased. Sales grew to $100,000 in 2011, but lack of capital and production capacity prohibited substantial growth. In 2012, with 150% growth, additional brewing equipment was purchased from 6-month advance orders providing the needed capital. In 2013 the company moved into a new production facility that took them from 500 gallons of output a week to 6,000 gallons per week. Revenue was over $950K with $500K of that coming in Q4 after the new facility opened. When running at full capacity this facility will be able to produce around $7M in product annually. In April of 2014 Kombucha Mama rebranded and became Humm Kombucha. The company founders are pushing into unchartered territory in the kombucha beverage space. This drive has led to the creation of the first kombucha tasting room in the country, as well as putting kombucha on tap in retail spaces. Further, the company is raising capital to purchase another facility to grow production to meet growing demand. Funding from the Deschutes County Forgivable Loan will be used to hire and train 25 new employees with an average family wage as defined by the Oregon Labor Market Information System (OLMIS) on the date a loan agreement is executed and to purchase supplies and equipment for expanded production - kegs, bottles, labels, and caps. EDCO Recommendation EDCO is recommending to Deschutes County an award of $2,000 per job for this request for a total forgivable loan of $50,000. humm kombucha Page 1 of2 bllAebeh"Y yOh\e~ranat.e strawbeh"Y or i ~i nal leMon ~in~er ayyle sass Mau totonl.tt liMe thai Mil'lt leMol'ldde leManade Wh at is Humm? It is a vi bration. It is music. It is the sound of happiness. Humm is a feeling that goes on and on . To us , it's the rhythm of the un iverse. Our family has been bre w ing kombuc ha for over 20 years-passed down from a mother to a son, from that son to his wife , f rom that wife to her best friend an d now to our ever -w ide n i ng circle of fr iends . From our early days brew ing in ou r kitchen to our newest full-scale brewery, we remain focused on our values of optimism, healthy business , partnersh i p and quality . We thi n k you 'll taste the difference . Welcome to Humm Kombuch a. Sign up for our newsletter an d be notified w h en our new web site l aunches . http://www.hummkombucha.c o ml 7/3/2014 humm kombucha Page 2 of2 Subscribe Humm Kombucha 1125 NE 2nd st. Bend, OR 97701 hello@hummkombucha.com 541-306-6329 Our brewery hours for tasting and grow ler fills are: Mon . -Sat. 10:00 am - 7:00 pm Sunday Closed Fo ll ow us on n http://www.hummkombucha.com/ 7/3/2014