The State of Dangerous Man: FAQs & Crowdfunding Update
We’re deeply grateful for the overwhelming support, feedback, and questions we’ve received. Your feedback, both uplifting and constructive, is invaluable, and we would like to address these questions and provide clarity as we journey forward together.
Vulnerability CAN BE dangerous, it carries inherent risks, and it also harbors profound beauty and potential. As we forge ahead, we’re fueled by the excitement of turning this next evolution into a reality.
We extend our deepest gratitude to the Minneapolis community for their unwavering support throughout our journey. This city is where our roots were first established, and it has provided the fertile ground for us to evolve from a mere brewery into something far greater. With the invaluable support of our community, we’ve transcended the confines of our humble corner at 13th and 2nd, becoming a cornerstone of the Minnesota community. Together, we’ve utilized our business as a catalyst for positive change through events, fundraisers, partnerships, and supporting causes close to our hearts. Moreover, we established a robust volunteer organization, embodying our commitment to giving back. As we embark on a new path forward, we carry with us the spirit of gratitude for the past and an unwavering excitement for the future.
Q. What is Dangerous Man’s Current Situation?
Dangerous Man is currently facing significant financial challenges, much like many small businesses. However, amidst these trials, we’re heartened by the incredible support we’ve received from the Minnesota community. Beyond just purchasing our beers in liquor stores and bars, many of you have reached out asking how you can support us in our current situation. Our Beer Garden initiative is our way of charting a course forward in these uncertain times. This represents just one aspect of our multifaceted strategy, as there are multiple being pursued. While there are more developments on the horizon for Dangerous Man, the unexpected challenges posed by COVID-19 coupled with the sale of the building in Northeast where we rented our taproom, have required careful navigation and have taken time to untangle. With the generous support of investors and contributions, we’re embarking on an exciting new journey to diversify our income streams while remaining mindful of our financial obligations.
Your contribution to our campaign won’t just help us navigate these rough waters; it will also expand the availability of our beverages further across Minnesota. Together, we’re building a stronger, more resilient future, and we couldn’t do it without you.
IMPACT OF THE PANDEMIC
Q. Why have you moved to Maple Lake and opted out of returning to a physical space in Minneapolis?
A. This first part is best summed up as a timeline of events:
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- 2019: The conversation of production and expansion begins, plans and dreams emerge, buildings are looked at, wheels are turning.
- 2020: All ideas/plans for production and expansion are halted when Covid hits, and the future becomes unclear. Focus is turned towards the survival of the taproom and keeping staff employed.
- 2021: Amidst the challenges of Covid, we recognized the need to diversify our revenue streams beyond our taproom. Running a small taproom-only model, we deeply felt the ramifications of the pandemic’s restrictions and limitations placed on in-person and indoor gatherings. Planning, funding acquisition, and the search for a production facility ensued.
- Summer 2022: Construction commenced on our Maple Lake production facility. Our Northeast taproom remained operational with no imminent plans for relocation.
- October 2022: The building that housed the space we rented for our Northeast taproom was listed for sale, prompting uncertainty about our future there. As renters, we couldn’t afford to purchase the property, leaving us in limbo regarding our fate in this space. At this time the gravity of COVID set in: we were experiencing very significant financial losses as a result of the aforementioned restrictions, lack of outdoor space, employee burnout and personal loss, and further yet, business was not returning to our pre-covid “usual”.
- March 2023: Our Maple Lake production facility became operational, enabling us the potential for distribution of our beverages across Minnesota, and we started with distribution to the greater Twin Cities metro area.
- Summer 2023: The Northeast building was sold to lovely new owners who had different ideas for the future of the space, thus leading to the closure of our taproom in October 2023. While we were sad to say goodbye to the space where we created our community and helped blaze the trail for MN craft brewing, we were so happy to see the building go to good hands as a new kind of space for community gathering.
- The successful launch of our production facility before the taproom closure ensured Dangerous Man’s continued existence. If the production facility in Maple Lake hadn’t launched before the taproom closed, Dangerous Man would not exist at all today.
B. Despite the closure of our taproom in Northeast, Dangerous Man remains committed to supporting the surrounding communities. We’ve maintained collaborations with local businesses such as Nixta/Oro for the Mexican corn lager, collab brews with other breweries ( most recently 56 Brewing & Insight Brewing) and collab events with businesses around the metro (Can Can Wonderland is a recent example), tap takeovers (Art-A-Whirl at The Briar), merch pop-ups, and other fun events. Keep an eye out for our upcoming events, and feel free to suggest any others you’d like to see us participate in across the city.
C. The current economic landscape makes it financially infeasible for us to pursue opening a new taproom in Minneapolis. We are ever grateful for what we were able to create at our former space in Minneapolis and the community we have been a part of there. However, change fosters growth; and we are embracing a spirit of innovation to explore the next evolution of Dangerous Man Brewing. We are so excited about the potential that our current facility and space have.
Q. What about PPP loans and other funding you received?
During the height of the pandemic, like many breweries in Minnesota, we received Paycheck Protection Program (PPP) loans. While these funds were intended to provide financial relief, they came with specific guidelines and restrictions on their usage. The loans were primarily utilized to support our staff by maintaining employment, providing benefits like additional paid time off to all employees, additional sick leave, and sustaining taproom operations during the turbulent times of the pandemic. The funds couldn’t be used for other purposes like paying down existing debt or making large capital expenditures.
We managed to stay mostly operational through our to-go sales as well as building and offering curbside and delivery programs. However additional challenges such as increased costs of goods, can shortages, and the inefficiency of hand-crowlering beer were not sustainable nor cost effective. Due to the restrictions attached to these PPP loans, their utilization was limited to these certain areas, constraining our ability to address all aspects of our financial challenges.
STOP-GAP FINANCING
After weathering the challenges of COVID and sustaining three years of losses at our taproom, we find ourselves at a critical juncture. The business is growing and we are making incredible beer, yet we aren’t growing fast enough to bridge the gap from our losses over the past several years – but we are so close!
We have taken out loans on our business, our farm, and frankly, now we don’t have immediate access to the capital we need to grow. If we can make it through the next few months with your help, we are confident that a sustainable future for Dangerous Man is within reach! While the Beer Garden is part of our future growth plan for additional revenue channels; in the short term, this crowdfunding campaign will enable us to continue the production and distribution of our beverages at a price point that is approachable.
Q.Why are you, a for-profit business, asking for donations?
- A. While the decision to seek assistance may seem unconventional for a for-profit enterprise, many small businesses hold crowdfunding campaigns to help them launch new projects. Dangerous Man is holding a crowdfunding campaign as one of several routes we are taking to help launch our new endeavor. Despite our reputation, Dangerous Man remains a small business operated by a small, dedicated team. We’re diligently employing various strategies, including reductions in overhead costs where possible, lowering cost of goods, and pursuing capital investors, to navigate the complex financial realities exacerbated by recent global events, including the COVID-19 pandemic.
- B. We’re acutely aware of the collective struggles endured by businesses, nonprofits, and individuals alike during these turbulent times, with escalating rental costs and soaring goods prices further compounding financial challenges. We are eager to keep using our brewery as a force for good by maintaining our ability to give back to the Minnesota community and local organizations through donations, collaborations, community events, beer fundraising, and volunteer initiatives. These endeavors are not only integral to our ethos but also essential for us to continue to make a positive impact in the future. In this spirit, we extend our encouragement for support towards deserving entities, whether it aligns with our endeavors or not. Your backing, in whatever form, is profoundly appreciated.
- C. We acknowledge that our recent attempt at engaging our audience through social media, though well-intended with a light-hearted tone, may have fallen short of expectations. Despite this, we remain deeply grateful for the support extended to us through various avenues over the years.
Additionally, we have launched a capital investor campaign and are actively working on this, but it is a lengthy process to secure significant investors. The support of this crowdfunding campaign will help fill the gap before the capital funds come through, and allow us to keep pursuing the growth and evolution of our business.
Our crowdfunding initiative goes beyond just funding a beer garden project. While the project is an integral part of our vision, it’s essential to highlight that the funds raised will also support our distribution expansion efforts. This means more opportunities to enjoy our craft beers, whether at your local liquor store, favorite bar, or even at home, while also ensuring that we can keep our products affordable and prices on the shelf low. Your support directly impacts our ability to sustain and grow Dangerous Man Brewing, ensuring that we continue to thrive as a cornerstone of the Minnesota community.
CROWDFUNDING BREAKDOWN:
$30,000 = Stop-gap funding that grants us the time to seek and finalize additional revenues while allowing us to keep producing & distributing our beverages
$50,000= Purchasing and begin build out of Shipping Container
$90,000 = Build out of Beer Garden, including seating, picnic tables, landscaping, family friendly area, lighting, sound system, and infrastructure
$115,000= Purchase another Delivery Vehicle, allowing us to meet and expand current delivery regions
$135,000= Purchase of additional 40 BBL Brite tank to increase beverage production for distribution and Beer Garden
$150,000 = Final infrastructure for Beer Garden to host events, music, food trucks, etc
$165,000 = Additional infrastructure for sustainability and growth (ie Grain Silo, solar panels, etc)
SETTING THE STAGE FOR THE NEXT PHASE
Q. Why a Beer Garden and Shipping Container?
To clarify – this is not a taproom in the traditional sense. There is no indoor seating. This is a modified shipping container and beer garden that will be open seasonally on select days of the month.
Under our current distribution-only license, we are granted four event permits annually, encompassing both on-site events at the production facility and off-site events where we would hold the liquor license. This is very limiting and these permits go quickly. Notability, a standard taproom license can hold any event within their licensed taproom and additionally receives twelve offsite permits annually.
The proposed beer garden presents an opportunity to obtain a distinct license, affording us the capability to host a greater number of gatherings and events. This alternative licensing arrangement would significantly enhance our capacity to engage with our community and expand our event offerings.
We specifically choose a shipping container as it will contain a large walk-in keg cooler, offer a variety of beers on tap, 3 service bars, and a unique experience encompassing the funky style and branding of Dangerous Man while incorporating elements like industrial accents, rustic finishes, and bold graphics. It’s a quick, unique, and affordable way for us to create a new space for folks to enjoy our beer directly from us, boosting our revenue and paving the way for future growth and exciting adventures. This beer garden will be a family friendly, dog friendly, outdoor space for fun, relaxation, games, events, music, food trucks, markets, and more.
CONCLUSION
We’re on an exhilarating journey of evolution, embracing innovation, growth, and continuous learning. As we venture into new territories and explore exciting opportunities, we’re committed to not only being a leading beverage company but also an integral part of the vibrant Minnesota community. With a steadfast focus on the future, we’re poised to make a lasting impact, forging ahead with passion, determination, and a shared vision for greatness!
To learn more or contribute to the future of Dangerous Man Brewing please click the link below for our Givebutter Crowdfunding Campaign. Dangerous Man: The Next Evolution