The Face Rock Creamery Story
Greg DrobotPresident, Face Rock Creamery
Face Rock Creamery
Face Rock Creamery
Face Rock Creamery
Face Rock Creamery
Face Rock Creamery
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
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?...
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
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!
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
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
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!
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
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.
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
Creamery Pictures
Creamery Pictures
Creamery Pictures
Creamery Pictures
Creamery Pictures
Creamery Pictures
Opening: May 8th, 2013
Opening: May 8th, 2013
Opening: May 8th, 2013
Accolades
• 2013 ACS First in Class Blue Ribbon • 2013 Culture Magazine 101 Best Cheeses of
the Year• 2013 League of Oregon Cities Award
THANK YOU
• www.facerockcreamery.com• Our cheese can be found at:
– Fred Meyer– Market of Choice– New Seasons– Haggen’s– Zupan’s