Local Beer Co. Sells Out & Raises $50,000 in 48 Hours

Today the craft beer industry is seeing sales exceeding $109 Billion with women making up 30% or $31 Billion of this number. Between 2011 and 2015, the market share for craft beer doubled. This can be attributed to a variety of factors — from people having more disposable income to the growing popularity of the IPA (India Pale Ale). As craft beer continues to grow, people have the opportunity every day to not only enjoy its sweet taste but to profit from it as well.   While on a trip to Mallorca, Spain,  David Epstein was introduced to what the Spanish call CLARA…an exhilarating and tasty combination of beer infused with fresh lemon. As he watched the handmade batches of the Clara fuel the fun on the beach and in the clubs well into the night he thought….”This stuff should be everywhere! I can taste the opportunity.”  Only two years after it was founded, Epstein’s craft brew company, Palmia, had surpassed 3600 cases and sold out in a beta test launch in San Francisco with roughly 110 accounts.  “We co-sponsored a small event at the Sundance Film Festival and had such great response that we ran out of beer. Next year you will see us at Coachella and SXSW.” Says Epstein.   "I want it to be for everyone, but especially for health conscious people that are looking for a good tasting beer without all the calories.” Says Epstein. “We are bringing the refreshing and unique taste of Spain to America.” David Epstein, Palmia founder   The premise is simple: We wanted to bring the refreshing and unique taste of Spain to America….a chance to taste the Endless Summer . In three short years we have brewed more than 3,600 cases of beer and sold in 110 accounts including Tacolicious, Kokkari, Don Pistos, The Brixton, and many more in the San Francisco Bay Area, with a net profit of 36 percent — .   Driven by our success and new SEC regulations allowing the American public to invest in private companies, I had another idea: Customers had demonstrated their desire to drink great tasting (beer inspired by Spain, brewed in the U.S.A.) lemon infused low calorie beer, so why not allow them to invest in it?   It goes back to that simple principle of beer bringing people together and providing a communal endeavor. The first Palmia batch was such a hit that I set my mind on refining the recipe using all natural ingredients and keep the calorie count at 90 with a 4.2% ABV.   As many business owners can relate to, accessing capital is challenging. But what if there was a way we could democratize funding to allow our community, or anyone for that matter, to invest?   Turns out, there was a way.   We found a crowdfunding site (WeFunder.com) — where other breweries had seen success raising funds — and signed up. We realized we would have to give away 35 percent of our business to bring the goodness that is Palmia to more people, so who better to invest than the people who love us the most: our customers.   More from CNBC's Equity Crowdfunding coverage  Equity crowdfunding explained: Video CNBC real-time equity crowdfunding indices   Next we turned to Facebook. We made a video to explain the crowdfunding campaign and promoted it to our community of 960 followers as well as the larger community of beer enthusiasts on Facebook. The results have been truly humbling. Palmia has raised $50,199 from 49 investors in 48 hours, who have each contributed between $500 and $10,000 for equity ownership in our (and now their) business.  The campaign will continue for 120 days or until it reaches its goal.   Our dream is for Palmia to be an overwhelming success in cities across the country. Over the next three years we hope to expand nationally. Ambitious? Yes. But that's how confident we are in our business and the passion of our community and beyond. We also want that to be true for other craft brewers. And we believe it can be with crowdfunding opportunities through sites like WeFunder.   Breweries and beers (like ours) continue to benefit from the rising popularity of craft beer and investments from those who have the heart and taste buds for it. Our model has created the cash flow we need to grow, and we believe it is a recipe for continued success as we look to expand across the country. After all, who doesn't want to know the people working at the bar that you frequent, but also own a slice, too?   — By Robert Nathanson, CEO of San Francisco, California-based Palmia

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Local Beer Co. Sells Out & Raises $50,000 in 48 Hours!