The Face Rock Creamery Story - Oregon Dairy...
Transcript of The Face Rock Creamery Story - Oregon Dairy...
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The Face Rock Creamery Story
Greg DrobotPresident, Face Rock Creamery
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Face Rock Creamery
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Face Rock Creamery
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Face Rock Creamery
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Face Rock Creamery
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Face Rock Creamery
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Bandon Oregon
• Long cheese making tradition• Founded by Irish Settlers• Close proximity to Coquille Valley• Great Milk Supply• Location on US HWY 101• Tourist Hub• Beautiful Location• Famous Cheddar Cheese
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Reasons NOT
to Start a Business
• Bad Economy• Financing is Impossible• Competition• I knew nothing about the industry• Regulation• Dependent on Consumer behavior• Hard Work• WAS I CRAZY?...
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Mitigating Risk
• Surround yourself with a strong Team– Joe Sinko– Daniel Graham– City of Bandon– Port of Bandon– State of Oregon– Coos, Curry, Douglas Development Corp (CCD)– CRAFT3– Oregon Cheese Guild– BRAD SINKO
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Development Goals
• Production Facility• Land• MONEY• Simple, RIGHT?
• KEY: What parties will you work with to achieve these goals, AND what do these parties WANT!
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Alignment of Interests
• Face Rock Creamery– Looking to Start a business– Has money and time to invest
• Financial Partners– Looking to lend to rural businesses specifically in
manufacturing– Has money to invest
• City of Bandon– Looking to create jobs, increase tax base– Has land, access to cheap money, URBAN
REDEVELOPMENT DISTRICT
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City of Bandon• Small rural population (aprox
3,500)
• Progressive and Innovative Mayor, City Council, and City Manager
• Open Communication of goals• Formed a Public/Private partnership• Use of Urban Redevelopment Funds
– Land: Negotiation a 50 year ground lease– Infrastructure: City built out all infrastructure– Public Restroom: City paid for public restroom
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Financial Partners
• Traditional Banks were a dead‐end, No SBA• Discovered lenders who focused on rural
development, manufacturing was a plus!– Coos, Curry, Douglas County Development Corp
(2 loans)– Business Oregon (1 loan)– Port of Bandon (1 loan)– Craft3 (2 loans)
• Lenders achieved their lending goals!• Face Rock got its money!
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Financing
• 6 different loan (Construction, Equipment, Working Capital)
• Required 30% equity investment (Min)• Interest rates vary 7‐9%• Term 30yr amort, due in 10 years w/balloon • Personal and business guarantees • Steep price, but it was all or nothing• GOAL: Refinance after 2 yrs of operation
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Construction
• 9,000sf Building (80% is production and storage)• Highlights:
– “see through”
production area– Second story seating/viewing area– Café– Ice Cream dipping area– Wine/beer bar– Large retail area for cheese and other specialty food
items.
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Our Dairy: The Scolari
Family
• Have been milking in Coquille Valley since early 1930’s
• Conventional heard, pasture raised• Holstein and Brown Swiss• Aprox
250 head
• Produced just over 2,000,000# milk in 2013• Ability to adjust milk components
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Creamery Pictures
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Creamery Pictures
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Creamery Pictures
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Creamery Pictures
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Creamery Pictures
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Creamery Pictures
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Opening: May 8th, 2013
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Opening: May 8th, 2013
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Opening: May 8th, 2013
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Accolades
• 2013 ACS First in Class Blue Ribbon • 2013 Culture Magazine 101 Best Cheeses of
the Year• 2013 League of Oregon Cities Award
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THANK YOU
• www.facerockcreamery.com• Our cheese can be found at:
– Fred Meyer– Market of Choice– New Seasons– Haggen’s– Zupan’s