BrewTopia: a feasibility study on sparkling kombucha tea (Record no. 23686)

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Personal name Ang, Adrian B., Apilado, Christell., Barao, Jenavieve M., Cari, Ana Pauline E., Domingo, Daniel M., Gaa, Glendyl Leah L., Lopena, Timothy Zeus Q., Olea, Ann Lauren SM., Pinto, Karen Lorraine R., Santos, Jade Andrea L.
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-- BrewTopia: a feasibility study on sparkling kombucha tea
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-- Feasibility Study: (BSBA major in Business Economics) - Pamantasan ng Lungsod ng Maynila, 2023
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Summary, etc. Executive Summary: A. Business Name The company's business name is BrewTopia, derived from the combined word brew-and +topia. The former is associated with one of the significant activities that the company engages in, which is the brewing of kombucha. Furthermore, the latter comes from the word Utopia, which means an ideal or imaginary world where everything is perfect. These two words together hint at the company's process of brewing and catering a variety of delightful flavors of kombucha in a perfect world. B. Business Logo Kombucha is a fermented beverage that is a mixture of other components of herbs, fruits, vegetables, etc., and other flavourings making the kombucha. The logo represents a fermented kombucha that is being sealed shut after being brewed with various ingredients such as fruits, vegetables, etc. Along with its other fruits and vegetables, it represents the freedom to choose what can be combined during the brewing process of its kombucha. The word -topia in its brand name BrewTopia comes from the word utopia and represents the ideal perfect image that a person can imagine (Utopia, 2022). C. Business Location Operations Area The location of BrewTopia is at 1120 Mendiola Extension, Paco, Manila, which is inside the University Belt (U-BELT). The place chosen by the proponents is surrounded by Shopee and Lazada drop-off stations which make it accessible for BrewTopia since the business will be operating virtually. Further, the area is considered a strategic location because the possible suppliers of materials and ingredients needed are nearby Mendiola. The proponents decided to lease 70 sqm of land, which can be seen in the picture above. Since no big machinery is needed to make the Sparkling Kombucha Tea, the area's size is spacious enough for the operation and production of BrewTopia. D. Brief Description of the Business BrewTopia is a start-up business that mainly offers a fermented kombucha tea-based drink. Kombucha tea is usually mixed with juice, spices, fruit, or other flavorings. Kombucha - a fermented product in general, is good for the microbiome and gut health. Fermentation makes probiotics that help with diarrhea and irritable bowel syndrome and may even strengthen the immune system (Smith, 2020). The name BrewTopia is an amalgamation of two concepts: 1. Brewing - As part of the production of kombucha, the tea must brew through two fermentation stages, a vital step highlighted within the business name. 2. Utopia - Synonymous with a perfect world, utopia was incorporated into the company name in order to project a blissful and flavoursome beverage. The company's initial years will surround mixing blends of Kombucha tea and selling the products by bottle. Production of the tea only requires storage solutions for the ingredients, space for assembly, and temperature-controlled storage for the products. Hence, the owners decided to put the production at 1120 Mendiola Extension, Paco, Manila. Furthermore, the business will also utilize the trend of e-commerce; BrewTopia will be available through online platforms to cater to and reach a broader market scope. Customers could place orders in advance by placing their orders on BrewTopia's online shops. BrewTopia serves kombucha, a fermented tea drink widely known for its health benefits. It contains high levels of antioxidants, various micronutrients, and the presence of probiotic microorganisms, antibiotics, and amino acids (Jayabalan et al., 2008; Fu et al., 2014; Coelho et al., 2020). It is historically celebrated as a miracle drink and medicine in the East Asian region. People believed in its ability to fight against diseases such as diabetes, gout, kidney stones, and cancer. Moreover, since World War Il, Kombucha's popularity has risen to a 6 million US dollar market value worldwide (Statista, 2022). Although most studies on tea lack clinical research on human subjects, several studies have been released informing that kombucha has the unique capabilities people believed it had (Kapp, 2019.) Despite its shortfall in further research and evidence of its human benefits, kombucha's properties are still proven to individually contribute to good gut health, which is only partly the reason for its marketability (Villareal-Soto et al., 2018). E. Methods of Financing With the agreement among the company's founders, Brewtopia shall run as a limited partnership with one partner that will serve as a general manager overseeing the business operations and production. Partners involved are entitled to a liability that is restricted only to the amount of their contribution to the firm. The general partner will contribute 19% of the capital, while the rest of the partners will contribute 9% of the total investment. Thus, Brewtopia founders will have a total of P900,000 as starting capital for the partnership. F. Long-run Objectives For the business 1. To establish a trusted company in the Philippines' functional beverage market that offers an affordable healthy substitute for soda. 2. To develop grassroots distribution for increased availability of kombucha in the market. 3. To expand through a tie-up agreement establishing a partnership with closely-related companies through a stipulation of a Contract of Agreement with small-scale retailers, food service locations, and local groceries. 4. To seize the opportunity of brand synergy in marketing through creating mutually-beneficial partnerships with businesses offering related products or services, and similar values to share a large customer base and potential consumers. 5. To cater to the growing demand for Kombucha in the Philippines and Southeast Asia. 6. To tap the potential growth of fermented drinks on the consumer end and reach the total capacity of its awareness in the community as a niche product. For the product (product development, more varieties) 1. To devise the varieties, such as offering controlled levels of alcohol and caffeine. 2. To develop the product line extension and research kombucha products such as candied S.C.O.B.Y., kombucha vinegar, and salad dressing. 3. To research and develop a more efficient way of production, such as in the fermentation and infusion process. For the community 1. To produce and provide a healthier alternative to carbonated beverages in the marketplace. 2. To operate in the conscious efforts of reducing destructive processes and causing no harm to the environment in production. 3. To encourage consumers to adapt locally produced fermented drinks as part of their dietary staple and contribute to the growing health and wellness advocacy in the Philippines. 4. To forge mutually beneficial relationships with community/local farmers/horticulturists by supporting and patronizing local businesses. G. Objectives and Statement of the Problem Market Feasibility The Market Feasibility focuses on determining if the carbonated Kombucha tea-based drink offered by BrewTopia can penetrate the market by strategically developing and adopting marketing techniques. Specifically, identifying the target customers through market segmentation, determining an optimal pricing strategy, assessing the potential consumers' degree of interest, and analyzing their past and future demand. This aspect also identifies competitors within the geographical area where the product will be offered to establish and nurture BrewTopia's competitive edge tactically. Hence, the following questions about the marketability of the business will be answered in this aspect: 1. What is the target market of BrewTopia? 2. Who are the closest competitors of BrewTopia? 3. What are the pricing and marketing strategies to be employed by the business? 4. How will BrewTopia be introduced to the target market? 5. What are the demand, supply, and demand-supply gaps identified by the business? 6. Where is the selling location of the business? 7. What is the competitive edge of BrewTopia among its competitors? Technical Feasibility The technical aspect of a feasibility study provides the specific desired procedure to assess the effectiveness of the firm. In this aspect, it will further discuss the business' location, products, and the raw materials and supplies of the product.
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Summary, etc. Therefore, the following questions about the technicalities of the business will be answered in this aspect: 1. Where is the most strategic location for the business to thrive and reach broader consumers? 2. What are the production plant layout's overall characteristics and equipment needed? 3. What is the production process for making healthy-based beverages- Kombucha sparkling tea? 4. What are the sources of equipment and raw materials for production? 5. What is the applicable waste management for the business? Financial Feasibility Financial Feasibility primarily aims to determine the profitability of BrewTopia in return on shareholders' sales, investment, and equity. Thereby, this section schemes out the company's capitalization on the start-up costs for both current and fixed assets, cost of production, operating expenses, and applicable taxes. Since the BrewTopia company is registered as a Barangay Micro Business Enterprises (BMBE), its privilege, such as income tax exemption, will be detailed in the financial statement. This section also presents the breakdown of the shareholder's equity in the business. Hence, the following questions about the finances of the business will be answered in this aspect: 1. What is the capital structure of the business? 2. How long is the duration of BrewTopia to compensate for the initial investment? 3. How much operative finances is compulsory to the BrewTopia enterprise? 4. What is the schemed operation of the business in the financial report? 5. What acquisition costs will the partners of BrewTopia be? Socio-Economic Feasibility Given the current state of the Philippine economy and social climate, a busine
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