Pittsburgh Pickle Company

Specialty Food

Introduction

Pittsburgh Pickle Company crafts high end, artisanal pickles with unique flavors. Founded in 2014, the company is growing quickly and looking to purchase new equipment to expand their own production while also using their facility to help other artisanal businesses produce their gourmet products. Pittsburgh Pickle Company is looking to borrow between $10,000 and $50,000 at 11.5% interest over 5 years. Anyone at least 18 years old can invest.



 


 


Fast Facts

  • 11.5% interest rate for investors with additional investor perks

  • Profitable business serving new and exciting pickle products along with classic favorites

  • A successful founding team consisting of three brothers with deep experience in the food and beverage industry, having opened and run BeerHive

  • Project to purchase equipment which will increase capacity and unlock partnerships with other artisanal food producers

  • Up to $50,000 loan, secured by new equipment

 


Investor Perks

Early Bird Perk

Get a free Pittsburgh Pickle Company T-Shirt as one of the first 20 investors

Big Help Perk

Invest $1,000 or more, and you and a guest are invited to attend an on-site party featuring all of the foods and beverages produced at their facility, including Pittsburgh Pickle Company's partners

 


The Project

Pittsburgh Pickle Company is looking to raise money to buy food processing equipment, liquid filling equipment, refrigeration upgrades, a brine heating system, building upgrades, custom boil pots and racks, and an updated exhaust hood fan.

With the upgrades in equipment, Pittsburgh Pickle Company will be able to more efficiently produce their products and fill orders. They are currently cutting produce by hand and filling jars entirely by hand with a process that is very time-consuming.

These equipment purchases and facility upgrades will not only enable them to create their own new products but will also allow Pittsburgh Pickle Company to produce and package artisanal goods for other local food and beverage entrepreneurs who have a desire to bring a product to market. They currently have three local companies who are under contract to produce in their building and many additional small businesses who are looking to have their products made in the Pittsburgh Pickle Company facility. The opportunity for rental income and/or co-packing revenue will increase greatly with the addition of new equipment and various building upgrades.

An investment in Pittsburgh Pickle Company will not only support their business but will also allow them to be able to help other local small businesses navigate the path of bringing a product to market. They feel that the long-term growth potential that comes with being known as a leader in small, local business development is immense.

Labeling Machine Schematic

Purchasing Tiers:

Tier 1

$11,000 Total

Robot Coupe Food Processor - $6,000

(To be used for quickly processing vegetables on a continuous basis. We currently cut vegetables one at a time and it is very time consuming.)

Piston Filler w/ Heated Hopper - $5,000

(To be used for bottling our bloody mary mix as well as bringing in other customers, like the salad dressing company, hot sauce company, etc.)

Tier 2

$9,000 Total

Refrigeration Upgrades - $9,000

(Improve insulation, purchase new compressors and bring new refrigeration online. This is a necessity for our growing business, as well as housing product for anticipated co-packing clients.)

Tier 3

$30,000 Total

Brine Heating System - $2,000

(This would allow us to streamline our pickling process and produce brine in bulk, which would save us a lot of time.)

Labeling Machine - $12,000

(This is a big piece of equipment. We are currently labeling by hand and it takes 4 people several hours to label one batch. This would save a significant amount of time and will become a necessity as we bring on new clients.)

Building Upgrades - $10,000

(This would be used to upgrade the warehouse roof and lighting, upgrade electrical in the warehouse and install insulation, which would allow us to increase our available processing space for expanded operations.)

Custom Boil Pots/Racks - $2,000

(Custom made stainless steel boil pots and storage racks that would allow us to streamline our pickling process.)

Electric Sausage Stuffer - $2,500

(This would save significant time in the sausage-making process and create a more uniform finished product. It would be a great piece of equipment to use for kicking off this portion of the business.)

Updated Hood Fan - $1,500

(We create a lot of steam in our processes and we'd like to upgrade our ventilation system.)

$50,000 Total Total cost for Tier 1, Tier 2, and Tier 3 combined. 


 

 


Deal Summary

Issuer

JWJTWO LLC doing business as "Pittsburgh Pickle Company"

Security Type

Secured Loan (fully amortizing)

Loan Purpose

Increase pickle making capacity with new equipment

Offering Amount

$10,000 - $50,000

Interest Rate

11.5%

Payments

Monthly, Disbursed to Investors Quarterly

Maturity

60 months

Personal Guaranty

None

Security Interest

Secured by equipment to be purchased

 

 


About Pittsburgh Pickle Company

Pittsburgh Pickle Company spent two years perfecting a recipe that resulted in pickles that were built to stand up to breading and deep frying, while also serving as an upgrade to the standard pickle that would come along with a sandwich.

The Pittsburgh Pickle Company owes its beginnings to the BeerHive, the Strip District restaurant the brothers operate. It was there that restaurant goers’ demand for their specialty pickles inspired John, Will, and Joe to found the Pittsburgh Pickle Company in 2014. The brothers began production in a local church kitchen, and later moved in November, 2016 to their current location at 555 Wildwood Avenue, Verona, Pennsylvania, in order to expand their operation and keep up with growing demand.

The brothers have built a strong foundation in the local food and beverage industry and have now started to open the door to other local food producers for co-packing in order to more fully utilize their production space.

 

 


About The Team

Pittsburgh Pickle Company was created by three brothers who initially joined forces to create BeerHive, a successful bar in Pittsburgh’s Strip District neighborhood.

 

Will Patterson

Will graduated with a bachelor’s degree in Accounting from Indiana University of Pennsylvania in 2004 and is a certified public accountant. He is married to his wife Stephanie and is expecting his first child in June 2018. Will has a passion for learning and spends his free time reading and creating new hobbies.

 

 

John Patterson

John graduated with a bachelor’s degree in Communications Media from Indiana University of Pennsylvania in 2001 and has a background in video production. In 2014 he was certified as an acidified food processor. He is married to his wife Whitney and they have two daughters, Sunny and Viola. John has a passion for music and has learned to play multiple instruments and record music in his free time.

 

 

Joe Robl

Joe graduated with a bachelor’s degree in Accounting from the University of Pittsburgh in 2009 and has a background in grant accounting and budgeting. He is married to his wife Kassandra and has a passion for craft beer and cooking.

 


The Locations

Pittsburgh Pickle Company is selling at retail locations, restaurants, and food trucks in and around Pittsburgh. To find their products, check out these fine establishments:

Retail Locations: Giant Eagle Market District, Giant Eagle Regional Stores, Shop n' Save, Stamoolis Market, Strip Market (In the Pittsburgh International Airport), Big Barn Country Store, 52nd Street Market, Good Loven, De fer Coffee, Old General Store, Penns Corner, Whole Foods, and Pirollos Deli

Restaurants and Food Trucks: The BeerHive, Rivertowne, Hoffstot's, Mohan's, Murray Ave Grill, Carson Street Deli, Café Monaco, Harpers Grill, Crave, PGH Sandwich Society, Oakmont BBQ, and many more

 


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. Once the campaign successfully reaches its target, the funds will be distributed to Pittsburgh Pickle Company.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount

One-Time Fee

Potential Quarterly Repayments*

Potential Total Repayment*

$100

$2.85

$6.59

$131.95

$500

$14.25

$32.98

$659.77

$1,000

$21.76

$65.97

$1,319.56

$5,000

$21.76

$329.88

$6,597.78

*Individual payments may vary slightly based on rounding.  Potential repayments include principal and interest, they do not include the one-time fee which is assessed when you make your investment. (Note: Returns are not guaranteed and investors could lose some or all of their investment) These amounts are calculated as a fully amortizing loan: principal and interest are paid down starting with the first payment.

Your ongoing responsibilities from investing are very limited.  Each year over the life of the loan you will receive a 1099-INT, this is a simple tax document similar to what you receive for most savings accounts.

When Pittsburgh Pickle pays as agreed, you will receive quarterly payments directly into your bank account along with a short update from the team.  In the event of a default, you will be asked to elect a representative to manage the collections process on your behalf.

 


How Honeycomb is Compensated

Pittsburgh Pickle is charged a 2.0% loan origination fee if this campaign is successfully funded.  This origination fee is reduced and the posting fee is waived for Pittsburgh Pickle Company because they are a founding partner.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $21.76 per investor.

The first $500 of fees collected (inclusive of the loan origination and investment fees) will be paid to the Collateral Agent (see the Form C for additional details) who is contracted by the investor to perfect the first lien security interest on the equipment to be purchased. Fees incurred in surplus of the $500 to the Collateral Agent are payable to Honeycomb.

 

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