Jump to content
ADI Forums

Max Action

Members
  • Content count

    174
  • Joined

  • Last visited

Community Reputation

0 Neutral

About Max Action

  • Rank
    Active Contributor

Profile Information

  • Gender
    Male

Recent Profile Visitors

2,633 profile views
  1. Max Action

    General Distillery Valuation Question

    I got that $350M figure from one of the prospectuses I mentioned. I don't have any insider info myself, but perhaps they did. I don't think the High West deal was that surprising, and not the only headline grabbing acquisition. I'd be curious to know what prices were had for Aviation Gin and Westland Whiskey. Take a look at the valuations of the deals mentioned above and other past and future deals. Don't forget Ballast Point sold for $1 Billion, or 20x revenue. Obviously the vast majority of small producers are not going to achieve such success, and many will fail completely, but there's no harm in trying and aiming high. That's what an investor will be looking for when paying 6X revenue in an early stage company.
  2. Max Action

    General Distillery Valuation Question

    I've seen a couple investor prospectuses recently that claimed $1000 per annual case sold is one industry standard valuation (i.e. Deep Eddy selling for $350M with 350K cases sold annually). I've also seen successful equity raises by smaller distilleries that are comparable with that valuation multiple. Of course I believe High West just sold for $160M with 75K in case volume, which is more than double that "standard" valuation. So if you're selling 5,000 cases annually with ambitions to become a national brand, a value over $5 Million value does not seem unreasonable. You might also consider a multiple of gross revenue rather than case volume. Something like 6X gross revenue might be worth considering as a starting point for negotiations, i.e. $1M in sales translating to a $6M valuation. Of course if your only ambition is to run a successful distillery-giftshop-cocktail lounge in your hometown, your valuation will likely be less dependent on your case volume and growth potential, and more dependent on your profitability and potential to generate dividends in a limited size market. It would probably be valued more closely with that of a successful local restaurant or bar.
  3. Max Action

    Franchise State Contract Language

    I'm curious what kind of language are people seeing in their contracts with distributors in franchise states? I understand the extra burden of the state's requirement that the distributor release a brand before switching to another distributor, but are there any challenges that prevent specifying conditions in advance which will cause distributor to release their rights? I'm thinking along the lines of minimum sales targets and buy-out clauses.
  4. Max Action

    Mono-block bottling system

    There doesn't seem to be a good "in between" option with automated systems. It seems like a choice between a $5K manual operation or $100K+ automated. I think a packaging supplier could do well with an entry level system in the $30-60K price range. Of course there is always used equipment, if you're willing to be patient for one with the right specs.
  5. Max Action

    New Stainless Condenser Build

    Cool. How many gallons of cooling water does it go through now? Another option to control flow would be getting a flow meter with needle valve, although that still requires manual adjustment throughout your run.
  6. Max Action

    Changes to For Sale Section

    I agree with this. It seems a disservice to remove the ad completely. I can't imagine it would take anymore work to lock a thread than delete it completely.
  7. Anyone know what the deal is with the semi-monthly tax period ending Sept 26th, and then another ending Sept 30th?
  8. Do these have a sloped bottom or otherwise drain completely, or do they leave a puddle after emptying?
  9. Max Action

    Bourbon in barrels for sale

    Just curious, do these ship in the barrel itself?
  10. Max Action

    Green Whiskey

    Ah, it's just a fanciful name. Clever. Not too surprising about the age statement however, as I also see it lacking on numerous labels.
  11. Max Action

    Green Whiskey

    With no new charred oak barrels, how can they call it Malt Whiskey? I also didn't notice an age statement on the label. Have they found some loophole by spelling it "whisky"?
  12. We started reasearching the industry long ago, and have equipment quotes from a lot of the still manufacturers from over many years. Prices for new stills have doubled in some cases, even after factoring the price swings of copper/steel and euro/dollar inflation. Same with leadtimes. Ten years ago you could by a 200L German still off the shelf from GW Kent for less than $20K. I think the current high prices are simply a factor of supply and demand. It's a good time to be a still manufacturer, but a not so great for a purchaser. For anyone buying a still today I wouldn't absolutely count on getting yout monry back when it comes time to resell your own equipment. With so many new distilleries opening in recent (and upcoming) years there is likely to be a serious increase in the availability of new equipment as companies scale up or go out of business. Plus I see a lot of new supply companies starting to offer distillation equipment and competing with the established ones. Not that it helps anyone today, but I expect to see a price correction in the near future.
  13. We had a distributor return some product. We already reported it as withdrawn on a past monthly report and paid excise tax on it. How should that inventory return be reflected on the current monthly reports and excise tax return?
  14. Max Action

    Looking for a 375ml flash bottle with bar-top finish

    oops I meant to post this to Packaging, not Equipment
  15. I think the title sums it up. It seems all the flask style bottles I've found are tamper-evident screw caps. But I would really be interested in an option for a 375ml flask with bartop. Anyone know of a supplier?
×