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    Distillery Business Plan No 2

    Uploaded by

    Derek Shilling
    This document outlines a business plan for opening a craft whiskey distillery over 4 years. It estimates that starting a distillery producing 3,000-8,000 cases per year will cost over $450,000. The first year will be spent obtaining permits and licenses, finding a location, and ordering equipment. Production in year 3 will be 2,300 cases of gin and whiskey. By year 4, with 100% sell-through, total retail sales could be $636,500, providing estimated net income of $257,918 for the distillery after taxes, costs of goods, and marketing expenses.

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    Download as PDF, TXT or read online from Scribd

    Distillery Business Plan No 2

    Uploaded by

    Derek Shilling
    7K views4 pages
    This document outlines a business plan for opening a craft whiskey distillery over 4 years. It estimates that starting a distillery producing 3,000-8,000 cases per year will cost over $450,000. The first year will be spent obtaining permits and licenses, finding a location, and ordering equipment. Production in year 3 will be 2,300 cases of gin and whiskey. By year 4, with 100% sell-through, total retail sales could be $636,500, providing estimated net income of $257,918 for the distillery after taxes, costs of goods, and marketing expenses.

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    This document outlines a business plan for opening a craft whiskey distillery over 4 years. It estimates that starting a distillery producing 3,000-8,000 cases per year will cost over $450,000. The first year will be spent obtaining permits and licenses, finding a location, and ordering equipment. Production in year 3 will be 2,300 cases of gin and whiskey. By year 4, with 100% sell-through, total retail sales could be $636,500, providing estimated net income of $257,918 for the distillery after taxes, costs of goods, and marketing expenses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7K views4 pages

    Distillery Business Plan No 2

    Uploaded by

    Derek Shilling
    This document outlines a business plan for opening a craft whiskey distillery over 4 years. It estimates that starting a distillery producing 3,000-8,000 cases per year will cost over $450,000. The first year will be spent obtaining permits and licenses, finding a location, and ordering equipment. Production in year 3 will be 2,300 cases of gin and whiskey. By year 4, with 100% sell-through, total retail sales could be $636,500, providing estimated net income of $257,918 for the distillery after taxes, costs of goods, and marketing expenses.

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    Craft Whiskey Distilling

    (Down and Dirty Business Plan)


    Assumption One: You will keep you day job during planning and building of a
    craft distillery.

    Assumption Two: The first year to will be spent writing a business plan, raising
    money, finding a location and ordering distilling equipment. Then obtain permits
    from: City, Country Use permits, State and Federal Distilling permits. (Get the
    permits before renting the building) Once the distilling equipment is installed call
    TTB to obtain your DSP. Finally obtain COLA apply for label approval for the
    products you plan to sell.

    Assumption Three: It will cost over $450,000 to open a distillery,


    producing 3,000 to 8,000 cases / year.

    Assumption Four: Income from the first year of production will come from
    distilling gin.(Gin made from NGS take two days to produce and bottle. Whiskey,
    depending on the style and type of barrels used should be aged six months to
    two years. (Rye whiskey requires very little aging)
    THE CRAFT DISTILLERY
    The Build Out
    Building Improvements
    Electrical, Plumbing, Fire Protection, General Construction$50,000
    One year rent………$2,500 x 12 $30,000
    Build out Expenses $80,000

    Brewing Equipment (New and Used) To Create Whiskey Wash


    Used: Boiler, Mash Tun, Two Fermentation Vessels $70,000
    (Save $70,000 by buying wash from a craft distillery)
    Distilling Equipment
    250 Gallon Pot Still $115,000
    Pumps, Hoses and Filtration System $ 10,000
    Brewing and Distilling Equipment $195,000
    Built Out Total $275,000

    Distillery Supplies
    Stainless Steel Blending Tanks & Totes $4,000
    Bottling Equipment, Cartons, Glass & labels $29,000
    30 Fresh Dumped Bourbon Barrels /$100 $3,000
    Storage Racks $3,000
    Carbon Filtration System $1,000
    Hydrometers, Thermometers & Ebulliometer $600
    Office furniture, computers, phones $4,000
    (Legal Fees, Trademark etc, $5,000
    Total Supplies $49,600

    Total Cash Out $324,600


    Cash in the bank for things not planned $47,000

    You obtained the USE permit and DSP and the end of year two
    Year Three
    Distilling three days and marketing two days of the week
    Products
    Gin re-distilled or blended from NGS 60% of production
    Whiskey, from Malt 40% of production

    Annual Output, (Year Two)


    Gin 2,000 Cases
    Whiskey 30 barrels 660 Cases
    (In reserve (aging) 15 barrels, 330 cases of whiskey.)

    Develop plan to sell whiskey futures to investors.

    Total Production in Year Three 2,300 Cases


    Year Four

    Best-case scenario with 100% sell-through:


    Gross income before production expenses, taxes. etc.
    Retail Sales
    Gin 2,000 Cases at $260 / Case $520,000

    --NGS Costs $330 for a 55 gal. drum.


    --One Gallon of 95% NGS produces over two gallons of 40% abv gin.
    --Total cost: $3/ bottle includes: product bottle carton and label but not
    marketing and taxes. --
    --The $3 Bottle of gin at retail is $21.67

    Whiskey 330 Cases at $350 / Case $115,500

    Total sales at Retail (NOT Distillery Income) $636,500

    Distillery Income, 50% of Retail $317,750


    Federal Tax: $13.50 x 4,432 proof gallons ($59,832)

    Net Income $257,918


    Direct costs of goods ($5/bottle in the case) ($139,800)
    Gross Profit $118,118

    Marketing Cost ($2/bottle) ($55,920)

    Operational Profit $62,198


    Fixed Costs
    Rent, Utilities, Insurance and travel………………………..…($61,000)

    *Income at the end of year three


    $1,198
    (If you have worked for free and have no employees)

    Bill Owens, American Distilling Institute

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