Lucidi Distilling Co

Read before responding. Bill Owens himself visited my distillery a few months back and I would implore him to post here and give his opinion on the pricing of this distillery based on what he saw and experienced. I know I have posted this before on multiple pages, but its time for me to get out of this business for personal reasons. Its just time for me to move on. Why build one when you can buy one for a fraction the cost? NOTE: This is an ASSET SALE with a new 10-year personal guaranteed lease attached. This business is NOT losing money. This business turns a profit with owner “put-backs” and credits for owner draws. This is a state-of-the art distillery with an award-winning tasting room located in Old Town Peoria’s entertainment district housed at Fire Station No. 1 (originally built in 1920, and completely rebuilt to the foundation in 2015). A full business profile, pictures, press releases, video tour, and 3rd party appraisal ($1.2MM with the building) will be made available to potential qualified purchasers. Unfortunately we have received a lot of requests from individuals wanting to learn how to start their own distillery, and we are not in the business of consulting. The price of $250,000 is for the business, assets, equipment, marks, goodwill, and all FF&E. Inventory will be separate, and is anticipated to be under $40,000 at the time of sale based on raw production costs (not retail, obviously). A lease is in place for fair market value and terms. A 10-year NNN lease need to be signed and agreed to, and optional extensions are available as well at the then-market-rate. All equipment is to be owned outright by the purchaser but must remain on site as collateral until the completion of all payments on the lease. Prospective purchasers should have significant personal assets to cover the personal guarantee required by the seller and landlord, and excellent credit as well. We will sell all distillery equipment and distillery related inventory separately for $365,115. Lease payments with NNN included are expect to be $9,015/month for the 4,400 building. Distillery Equipment includes a 330 gallon mash tun with agitator, three 440 gallon stainless steel fermentation tanks, 330 gallon hybrid pot still attached to a copper 4 plate 12" whiskey column topped by a state of the art dephlamator, 12 plate stainless 12" vodka tower, 12" gin basket, final condenser, parrots beak, (4) 55 gallon stainless steel transfer and holding drums on locking casters with lids and quick connect hoses, distillery hoses, air-pressure powered mobile mash and fluid pump, snap 40 alcohol meter, 2 separate bottle filling stations (Mori gravity filler and Xpress 2 bottle filler, 20+ new oak 53 gallon barrels with a char level 4+, barrel racking fork system, 5,000 lb forklift, custom stainless tables and bottling station, pallet jack, numerous hydrometers and measuring devices, OSHA approved mobile access stairs, commercial racking storage system, 15psi converted low pressure steam boiler (serviced and registered with the state 60 days ago), blow down tank, condensation return tank, 1,000 gallon glycol/water return tank, series progression pumping system, 8hp chiller unit, water purification system including a 96k resin based filter and "big blue" block filter, 5 stage R.O. system with 50 gallon bladder storage system, and hundreds of miscellaneous distillery related tools. Not listed here but included is all newer bar equipment, walk-in cooler all kitchen equipment (all purchased new), and literally everything in the building with the exception of some minor personal effects. Detailed Information Location: 8307 W Washington St., Peoria, AZ 85345 Inventory: Not included in asking price but anticipated to be under $40,000 Employees: 2 – not including the owner Facilities: Located in a state approved entertainment district and housed in a perfectly designed historic building. All state of the art and newer distillery equipment with well over 25 years left of useful service. Full distillery details and a complete list of all equipment can be sent after the purchaser has returned a signed NDA. Newer kitchen equipment (about a year old). All construction done in accordance with modern and universal federal/state code. Competition: The business is the only game in town when it comes to this business model. As a federally regulated business, this industry has extremely high barriers-to-entry making competition not likely or easy. The business location in a prime location with over $100mm being invested in the immediate area in the next 12-18 months. This distillery would benefit drastically from the addition of other related restaurant and entertainment businesses. Growth & Expansion: Plenty of space to expand the current operation within the same footprint. The facility currently operates below 10% of its total capacity. Enough spirits can be produced in less than a month to stock the distillery and distributor for the entire year with current operations. Additional types of spirits can be made as well, along with highly profitable seasonal products we are launching this month. This business is being priced at its current ASSET SALE value, not its future value. Any growth items will have a positive effect on the bottom line. There is a $75MM, 128,000 hospital being built a block away that will drive additional business to you. Growth is positive year over year. The business is only open Thursday 12-9, Friday 12-10, Saturday 12-10, and Sunday 12-6. Additional hours would increase revenues. Additional days open would increase revenue. We have done zero marketing since day one, other than social media which is all organic with over 5,000 followers. Financing: *Proof of funds required to share detailed info. Owner may carry, but only in special circumstances to the right buyer, and with conditions. Support & Training: 2 weeks. Other Miscellaneous Notes: Buyer and Seller will split all costs to prepare sale documents, finalized lease agreement, background checks, personal and corporate guarantees, etc. Total cost estimated to be between $8,000-$10,000. Preference will be given to potential buyers than have in the past operated retail businesses, bars, restaurants, breweries, and distilleries.

In Arizona we are allowed to do bottle sales over the bar for off premise consumption. Our growth has averages 40-50% year over year, and we are on an upswing still. We have put little to zero focus into distribution, but are required to have a distributor in the state of Arizona once we produce 1,289 proof gallons of more, which we do. 90% of our bottle sales revenues are from the 1,250sf tasting room. We do not not one person working for the company that does outside bottle sales, but we do have over 100 accounts through the distributor for On-Premise Sales. We have declined to be in any Off-Premise locations to date for two reasons, one, I believe it to be too early, and two, I would rather sell a bottle of whiskey over the bar for $40, instead of to the distributor for $15.50. Feel free to contact me by email too (I should have put that on the original post) chris@lucididistilling.com. Chris

Some other notes: Facts about this property/business: 1. 4,800 Social Media Followers/Likes = 4.74 Star Rating (out of 5) on Facebook. Highest in the State of Arizona for this industry with over 1,000 followers. 2. Yelp Rating of 4.5 stars (out of 5). Highest in the State of Arizona for this industry with a minimum of 50 ratings. 3. Highest rated distillery on Groupon with 98% approval (“would recommend”) rating with over 420 reviews. 4. Ranked Number 1 on TripAdvisor.com in Peoria, with a perfect 5 out of 5 stars. 5. Birdeye.com 4.8 out of 5 stars with over 170 reviews. 6. Multiple massively positive news coverages (find even more on google.com): OTHER AREA NOTES 1. This area has been designated as an “Entertainment District” (2012) as defined by the State of Arizona. This allows for department of liquor permits without regards for 300-foot minimum distances from churches, schools, or day care centers. A city is only allowed to have 1 Entertainment District for every 100,000 residents. 2. Regulatory Landscape includes the Old Town Revitalization Plan of 2009/2011, The Multi-Modal Transportation Plan of 2012, and is currently in progress of updating the Old Town Mixed Use Zoning District and updating the sign ordinance. 3. The business currently has the following liquor licenses in place: a. Series 12 Restaurant License (allows for beer and wine sales, including outside spirits) b. Series 17 Shipping License (allows for shipping in the State of Arizona) c. Series 18 Craft Distillers License (allows for manufacturing, botte/case sales) d. Series 19 Satellite License Available (allows for a second location off the Series 18) 4. There is no requirement for parking spaces under the current zoning in Old Town Peoria. This has the result of being able to develop the lots to the primary lot lines, without any setback. 5. The city has approved the new construction of a $70,000,000 127,000 sf West Valley Primary & Specialty Care Center (hospital) in Old Town Peoria. Initial plans have been submitted and expected completion in late 2019. This was a bond approved measure with financing already in place. 6. The Old Edward’s Hotel has finally sold and is being restored to its original condition with a breakfast and coffee shop on the main floor and flex office space on the top two floors. 7. With the exception of the Hood Building and the Martin property, the city now owns the remaining lots for sale or development. They are currently in discussions with developers. 8. We have held events as large as 15,400 people for the Los Lobos / Lose Lonely Boys concerts, 14,000 people for the annual Christmas party, 12,000 people for the Annual Arts Festival, a dozen Food Truck Friday events averaging about 5,000 people each, Annual Vintage Market Days with 6,000 people, Toys for Tots Event with 2,500 people, and dozens of parties ranging from 60 people to as many as 300 for private organizations. 9. The building was built in a manner that the “Lucidi” brand can easily be replaced for under $1,000 and the Fire Station No. 1 brand can take over, or any other brand of choosing. 10. The City of Peoria is heavily invested in this specific block and EDIS II funds are available for developers and new businesses.

Distillery for Sale - Arizona www.lucididistilling.com or www.facebook.com/oldtownpeoria 330 gallon mashtun (3) 330 gallon fermenters 330 gallon hybrid pot still with copper column 4 plate whiskey tower 12 plate vodka tower Gin basket (2) dephatmators Final condenser Mobile mash/alcohol pump 4 bottle Mori filler 2 bottle filler Forklift 20 some odd new barrels Barrel rack system Stainless top Anton Parr snap 40 3 compartment sink Hand sink Mop sink 1,000 gallon cold water return State of the art boiler and chiller in separate room Tons of miscellaneous equipment Forklift The list goes on – serious buyers will know by looking at the pictures online, what all this costs. Ive seen other people on here label it all out per item. I’ve always thought things are worth what people will actually pay for them. I do have receipts for everything. 4400 SF building in Peoria’s entertainment district in the heart of the valley 10 minutes from the Coyotes and Cardinals. Easy access to the 101 None of this stuff is over 3 years old Im not even going to get into the FFE on here in the 1200 sf tasting room and bar, with licensing in Arizona to ship in state, and the ability to sell beer and win. We added a $150k kitchen a year ago. People stay longer with food. Happy to give facetime tours for people when I’m down there 4 employees counting myself – simple operation with very positive online reviews and reputation. The building and buildout has a 3rd party appraisal for $1.2mm – I am not interested in selling the building. The business is for sale for $490k. Plus any minor inventory. Im just looking to get a fraction of what its worth, as I am more interested in the development of additional blocks in the area. The lease rate would be market rate. You get an agent, Ill get an agent and we will figure it out. Looking for a minimum 10 year lease, with a personal guarantee. My guess is somewhere around $18-19 a foot, so about $6,780 a month plus NNN, but that needs to be negotiated, and I would obviously be the landlord. – this is a turnkey operation. And the building was designed to have an easy name change being its housed in Historic Fire Station No.1 Im willing to sell the building, but not at a Fair price if im being honest, its just too cool, and I spent almost 2 years getting it designed and built. I won’t split up equipment for sale Call me – Chris 623-512-5737 (sorry about the grammar and spelling, on my mobile)

Filed May 20, 2015 (officially) - Approved on October 9, 2015 = 142 days Notes: The bond was filled out perfectly by Aaron Linden (from this site). Recommend him for you new guys thinking of doing this. Ended up have zero comments and was passed through to "Recommend Final Disposition". Sat there for a few weeks, called back in, got rejected and sent back to the original reviewer. She had 2 very short, one sentence questions that required very short one sentence answers, turn around in 1 day on that. Then back to Recommend Final Disposition for three weeks with me calling 1-2 times a week, waiting on hold, getting dropped because the system was too busy, etc. Finally got ahold of a real person, whom told me she would do her best to get it looked at. No fancy certificate mailed out, nor a parade thrown, and no balloons fell from the ceiling, but got a simple email stating: "Hey you, your application is approved, and your permit is issued." Process was about as expected and explained to me by many other distillers. Those of you that did help, thanks. I guess I finally have to go to work now. I can say while the process was long and irritating, the people at the TTB were always very professional and polite. I would even say very nice to talk to.... when you could get ahold of them. If anyone wants to see my application and all relevant notes, I am happy to share... I just have to make the time to black out my personal info and convert it to a pdf. I sure wish I would have had one before I started.

Geesh. I have a couple of write-ups as well in the small local papers where I was so misquoted, I looked like an idiot; when in fact the "journalist" just did a half assed job. That being said, I no longer get into proof gallons with reporters. I say: "Well, to answer your question - the federal tax is currently $13.50 per proof gallon. Meaning that this vodka bottle at 750mL and at 80 proof, I would pay $2.14 in federal taxes." Reporter says: "Okay, got it." Reporter writes: "The distillery pays $13.50 per bottle in state taxes, according to the owner." Me: *Slaps face*

"Humbly" McKee, I have literally shopped out and priced well over 70 different explosion proof items/options for my distillery. I put in the work. I made my selections, based on what my PE recommended, and what was for the MAXIMUM amount of safety, not the foolish state/city minimums I happen to have here where I live. I own and have read the "Recommended Fire Protection Practices for Distilled Spirits Beverage Facilities", as obviously as my PE has. That being said, I have hundreds of hours invested into researching the equipment, availability and pricing. For example: The lighting in my distillery is Dialite Safesite Wide-Lens Highbays. I was quoted pricing anywhere between $1,511.11 and $4,560.00 for the EXACT same products, from different vendors. The original poster is building a distillery, so that kind of information and the source in which he can buy it AT the best price, might be of some use to him, you think? Especially if it turns out he need 4 of them to achieve his desired luminous emittance. I'm pretty sure he would want to save that additional $12,000 or so for barrels maybe in that scenario. This is a forum to HELP each other. Plenty have helped me, and I intend on helping others. And that is one of many examples... Silver Trail is not a wakeup call to me. While it is unfortunate that people were hurt/killed, did you even look at that equipment they were using? It doesn't surprise me. It should be expected when you operate in a manner less than safely professional, you are going to suffer the consequences... eventually. As for you previous comment, that I would be held liable for such advice, we can always test that. My advice to you is to pull that stick out of your butt and jump off a cliff. Then you can have your next of kin try and sue me because I recommended and advised it. Your call on the stick though... you can leave it in while you jump if you'd like.

Which is exactly what I just went through. I already purchased it and was willing to share that information. Some people on here actually have been to law school are simply offering some basic help and direction without charge. You comments about liability are unfounded and ridiculous in this situation. Chill out.

Feel free to call me on my cell phone: 623-5I2-5737. I just went through this and would be happy to help you with what I know. Every city is different, but I think I have a handle on it. Chris

Pictures, make, and model?

I didn't see it above, but are you chill filtering the product?

Deep Eddy

I just want to know the "how"... From a strictly physics/chemistry perspective, would the heating/dehydrating of it remove everything but a nominal (less than 1%) amount of ethanol? They would have to "micro-encapsulate" it to some extent I would think.

I can tell you that I have been to two different distilleries here in my state (Arizona), and noticed this as well. One of them actually has a refrigerator (with samples in it) plugged in mere feet from the equipment, with no separation at all. So many violations we lost count. Limited to no explosion proof plugs or pumps/motors as well. All I can think is that the TTB hasn't done any inspections, and the plan they originally filed LOOKED legit. I am going through the same process right now with the state, and while they have been nothing but helpful and cordial, no exceptions have been made on their account, and every "t" is crossed and "i" is dotted. I have although seen some separated with a chain link fence as well, and while that look never peaked my interest, I always wondered how they pulled that off.