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stillcreek

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Everything posted by stillcreek

  1. Recall plan

    Good to know - we had to recall out first order - It became a mess when we were audited
  2. Lead Time

    Those are the least of your problems - Your biggest challenge will be dealing with distributors and trying to get placement. You'll learn quickly that your probably in competition with your distributor and your retailer.
  3. Previously listed for lease and no responses - Looking at selling off the distillery - turn key - roughly 40K, great location in the country but close to major college town and about 10 million people within a two hour drive. long term lease available on the property with lots of room to grow and expand. Distillery building is 1,500. square feet, tasting room, unfinished is roughly 700sqft. 5 acres perfect for concerts and events. Five minutes from Chuck Norris's house and C-Force Water - we use the same aquifer.
  4. Distillery for Sale - Texas

    Never met him or seen him, he stays really low key, personally I'm rarely at the distillery. We had talked about doing some charity events if we ever finished the property and extend him an invite. We've used some local craftsmen that know him and said that he doesn't drink or ever has. - Mr. Norris just built a 50,000sqft bottling plant for water across the street from his ranch. http://cforce.com/
  5. Hello from Brookshire, TX

    Our distillery is in Anderson, close to College Station about 10 minutes from Chuck Norris's ranch and his CForce bottling plant. We make Vodka out the same water Chuck Drinks and sales. Your better off messing with Whiskey for profit and distribution, even specialty Spirits. We've been at it since 2013, We're at a point that it would be better to sale or lease and contract back to make the product. The plant and operations part is a lot of headache and liability, all the energy goes into marketing. Have you visited with distributors? Do you have a wholesale price point and a shelf price point that your targeting? Your going to need to be priced at Titos or below on the shelf and it's an extremely hard sale. I'm not sure how familiar you are with Specs or the inter workings. talked to other distillers first hand. The laws and system are stacked against you in Texas unless your well capitalized and can afford to push and market, we're grass roots so it's a challenge. After its all said and done i estimate we lose about $6.00 a bottle selling through the 3 tier system and the big chains. Sounds bad but i know of one brand that lost about $120.00 a bottle. They were publicly traded and after reading their financials thats roughly what it was. PM if you have any questions?
  6. Hello from Brookshire, TX

    Great another Texas Vodka. George if you have your TABC out of the way and paid the fees you've done it backwards. The TABC license has to be renewed every two years, make sure the clock hasn't started. It's a tough business in Texas due to the 3 tier system and competition for distributors and market share. Still dragon is a good bang for the buck we've have two systems for 4 years.
  7. Distributor and wholesaler markups

    Hayden I'm in Texas and deal with all these guys. There is no formula as you can't control the retailers price. $24.00 dollar Texas Vodka is a hard sell I know first hand. You need to be less than $20.00. My product sales from $16.99 to $22.62 and wholesales for the same price. Your going to need to wholesale for $8.00 or less. Your a vodka your nobody everyone is a vodka. Even at an $8.00 wholesale there is not guarantee the retailer is going to price you fair. You might be on the shelf at $24.00 and the guy selling at 10.00 is on at $19.00. At the end of the day we probably lose $6.00 a bottle for every bottle we sell. Plan on doing a lot of tastings if your in Specs and budget about $140.00 per tasting - You have to buy your liquor at retail and then pay a tasting company about $35.00 to $45.00 per hour, hope the girl shows and doesn't text on her phone the whole time. Not sure what your talking about regarding TABC tax on small scale distilleries. Distilleries don't pay tax to the TABC unless they're donating product to a charity or selling in the tasting room. The tax is picked up by the Wholesaler. FYI the wholesaler is going to take 25% to 50% margin yes I said 50%. your $15.00 product is going to end up on the shelf at around $40.00
  8. We've got a small distillery in Central Texas, kicking the idea around of leasing out the distillery. The main building is approximately 1,500 sqft with a separate building built for a tasting room 640sqft that is unfinished. Nice 5 acre property with a small lake, rolling hills in the area. Lot's of Saturday, motorcycle/sports car traffic. Great set up for tastings, concerts, festivals etc. limitless potential. 60K college students 20 miles away and roughly over 7 million people within an hour and half radius. This would be for a 5 year triple net lease with a 20K - 25K deposit held in escrow. We would still retain our brands and develop new ones, just thinking about getting out of the operation end of things and focus more on sales and marketing. Permits are current and would have to be assigned or new ones applied. This is a turnkey small distillery, nothing fancy but 4 years of hard work already in place.
  9. Margins and Laid in Costs

    Base on distributor margins - Is the general markup your seeing before or after laid in costs? Example - Distributor requires a 30% margin. - retailer marks up 40 points. Mfg Wholesale = $10.00 - Wholesaler marks up 43%, (30% margin) = $14.30 - Retailer marks up 40% (29% margin) = $20.02 or $19.99 shelf price or Mfg Wholesale = $10.00 - Wholesaler adds .75 laid in costs marks up 43%, (30% margin) = $15.37 - Retailer marks up 40% (29% margin) = $21.52 shelf price. What's the bottom your seeing a distributor willing to go on a minimum margin or per case price after laid in cost?
  10. Whiskey Systems. To Much Money???? thoughts??

    Depends on your size of production - If your doing a 1K cases a month I can see a value - If your a startup, it's a great deal for the guys selling it. Most of the distilleries that I'm seeing in Texas struggle to do a few hundred cases a year, for us it's a complete waste of money that can be spent on sales and marketing.
  11. What's the time frame for transfer in bond?

    Never more than a day or two
  12. Bartletts Distillery of Texas

    Congrats - Looks like your the 5th new distillery coming to the Houston area - for a total of 12
  13. Critique my business plan - ready to lease space in Denver

    I was going to ask you do your pizzarias sell beer/wine or any type of spirit? If so, check with the TTB. I was warned by the TTB that if I owned property and a tenant had a liquor license or sold beer with or without my knowledge I could be in serious trouble. Additionally that said don't drink beer or have beer in your fridge or that would be a violation keep it outside the leased premises. Anyone else get this warning when you were licensed?
  14. Capsule costs and sources

    Try enolplastic in California - We had the capsules custom fitted and made for our bottles with our logos and gold foil stamping. Ran roughly .04 a capsule plus about $800 for the tool and die set up.
  15. Critique my business plan - ready to lease space in Denver

    I'm not seeing storage tanks, Federal Bond, State Bond, Insurance, Bottling Equipment, Labelers, Cappers, your about 2K off on your lab equipment, Tool & Die setup, Labels, Bottles, Closures - the list goes on - probably double the number to be safe - If your in a city - you could have sprinkler issues, blast proof rooms etc.
  16. Whiskey Systems Online is 1 Year Old!

    Anyone see the value in the service? Seems extremely overpriced for a small guy. Just my two cents.
  17. Critique my business plan - ready to lease space in Denver

    I'd say triple the initial numbers for starters - then set aside at least 100K for you rents maybe more - On the safe side, I'd say $400,000.00 - $500,000.000 total capital maybe more - your going to need capital to pay taxes on your production once it leaves the warehouse. If your in the city you may have to blast and explosion proof certain areas plus a commercial sprinkler system that could set you back 100K getting things to code. You may also have to go through zoning, you want to do this on the front end, set aside 5K to 10K if required, (I do zoning for a living). Also, once your up running those numbers are for not taking salaries, your also going to need about 10K to 20K in marketing dollars. I don't know much, it's a lot of trial and error - we're about 2 3/4 years into it. A year of actual production, 100 cases sold the first year and 200 so far this year. We started with about 200K which includes owning the land, buildings and equipment so we're debt free with minimal overhead. The biggest challenge is getting placement through your distributor. Once you have placement get ready to spend a few grand a month on a tasting army. A lot of cash and time will go to sales and marketing. Get ready to add another 20 a week plus on top of your day job just for making sales calls, building relationships and keeping records. Anyone feel free to comment or am I way off on my experience so far, am I way off? Thoughts? Additionally, you won't be able to sell booze from day one. You can't start making a product until after you have your State and Federal licenses. Once you received those you will need to apply for a password to Cola, took me 45 days to wait for the password, once you have your Cola access then you apply and wait. Once approved tool & die and printing times for labels. I'd add six month to a year after your licensed before your starting to sell. Once your up and running you'll have to find a distributor willing to take you and then be prepared to start making sales calls. I didn't factor tasting room as we're not up and running in the area at the present, still a work in progress.
  18. Howdy from Texas!

    Congrats!! Get ready for a rough ride.
  19. Aspiring Distiller Finding Customers

    You really can't have customers until you produce a product. You can put feelers out and see what the interest is and do they support craft producers. Put together some mock ups and branding, go around and ask for feedback. Once your producing a product your going have to find a distributor willing to take your product. Set aside a marketing budget, your generally at the mercy of the distributor to place he product. Once they place the product get ready to spend your profits in helping the retailer sell the product. Unless you can sell from your distillery your going to have to raise brand awareness which takes hard work and capital.
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