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Distillery Business Plan?

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Distillery Business Plan?

Postby Pop Larkin » Fri Mar 15, 2013 6:30 pm

Howdy all

I had a business idea proposed to me by a friend recently. Of course it involves our great hobby & as the tittle implies, I was wondering if anyone had actually sat down & got as far as drawing up an actual business plan for a small micro distillery? Im not talking huge but something that could produce a net yearly income / profit of approx. $75K.
Just thinking out loud right now but wondered if anyone has been down this road & if they would care to share any information they may have found?

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Re: Distillery Business Plan?

Postby mlb68 » Fri Mar 15, 2013 9:06 pm

Hi Pop
I have looked into starting a micro and a good place to get the information you need is ADI forum they have people from all over kinda like on here dealing with Micro's Some our members on here are also members there and can tell you better than I can, but here's is a link to them.
http://adiforums.com/

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Re: Distillery Business Plan?

Postby Ateliervie » Sat Mar 16, 2013 5:50 pm

Someone just posted a sample business plan on the ADI site. They copied off a PDF that's available, search for "FifthUnderground.pdf".

I would note that this plan is interesting, however I wouldn't give it a passing grade.
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Re: Distillery Business Plan?

Postby Harry » Sat Mar 16, 2013 6:19 pm

.


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regards Harry
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Re: Distillery Business Plan?

Postby Ateliervie » Sun Mar 17, 2013 8:05 am

Yes, Harry, I know where I downloaded it.
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Re: Distillery Business Plan?

Postby Pop Larkin » Sun Mar 17, 2013 12:44 pm

Excellent !! Thanks Fellers . I will give it a look over.

Like I said, this is all pie in the sky right now but maybe, if all the stars align, who knows what may happen. Than I see VB's gorgeous stills. Wonder if he ships to England ????

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Re: Distillery Business Plan?

Postby vb » Wed Mar 20, 2013 8:27 am

that particular plan is being ridiculed on ADI as being very far from reality.
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Re: Distillery Business Plan?

Postby Ateliervie » Wed Mar 20, 2013 9:33 am

It's kind of a tipoff when they mention how they plan on setting up in West Virginia, but might instead locate the distillery in Russia.
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Re: Distillery Business Plan?

Postby Idle Hands » Sun Apr 28, 2013 9:35 am

I agree that the plan is unrealistic -- low balling the cost and exaggerating the profits. That would even be truer in less distiller friendly states. I've figured a cost of about $100,000 from stills to meeting code to overhead and then there are the laws requiring you to sell to the distributor mafia. A local micro in my state making vodka (which any idiot with a reflux still can make) had to sell it through the state ABC. To keep in on the shelf of the state stores required selling $10,000 worth a year. He got only $2.00 a bottle in return and because the of the competition with the 50 or so other vodka brands, he fell short and it is not even on the shelves.
http://hamptonroads.com/2013/03/distiller-spot-abc-shelves-would-boost-spirits

Better to try in Colorado, Montana, Kentucky, Washington State or California.

Better yet, to keep it a hobby one can truly enjoy.
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Re: Distillery Business Plan?

Postby sugarcreek » Sun Apr 28, 2013 7:07 pm

My two partners put together a BP for a full distillery and the cost was much closer to $500,000 for Year 1. This was (roughly) split into $175,000 for still / steam; $10k cooperage, $100,000 20 BBL brewhaus, and about $100,000 for build out which included a tasting room, bonded area, and facilities for retail sales. I forget the exact figures but this is in the ballpark. The prospects for one making ones fortune distilling is a tough one...
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