start-up distillery growth

[EricCantina]

We're formulating our business plan and trying to create our future projections about production and sales.

We plan on making gin, whiskey, and vodka initially.

Would anyone care to share any numbers for production and sales?

Does not need to be any specific $ figures but maybe some %s from year 1 to 2 and etc.

Also if you have extended your product line, did that cannibalize your other products, or add favorably to your bottom line?

Thanks,

- Eric

[Jedd Haas]

These numbers are going to vary wildly depending on numerous factors. The first thing to consider is your initial funding and production capacity. If you're doing it for 100k or less, you'll be bootstrapping it and building sales from zero. If you're starting with $5 million or more, you can hire an army of sales reps and push product through numerous channels in short order.

Is this your first startup? If so, I'd suggest finding a local adviser who can help you.

[Curtis McMillan]

Hey Jedd sorry didn't get a chance to call you back .. on the topic .. its safe to say the things you don't know will hurt you. Money is king in Booze start ups - Its hard for me to state my sales in one state over another we have to many factors. The best thing to do is get an idea of where you can sell and how much they are willing to take.

Step 1 - Find as many retalors & bars and become friends ask them if they would buy a case of (vodka,whiskey,gin) and what they are willing to pay

Step 2 - Make a spread sheet of this list and do an avg (always round down)

Step 3 - once you have this number build around that. You will know how much you need to make in the first year. Plan on 30% growth each year. So set your equipment up to be 90 times bigger at point of purchase. That way you pay it off and are ready for growth in 3 years not buying a whole new set.

Last step DON"T BUY A KIT >>> DON"T BUY A HYBRID STILL >>> DON"T DO IT!!!

[EricCantina]

Last step DON"T BUY A KIT >>> DON"T BUY A HYBRID STILL >>> DON"T DO IT!!!

Any particular reason?

[grehorst]

Eric,

We put all our energy into our local market for the first 5 years- built a strong local business (put a tasting room in too). I couldn't imagine doing it any other way unless you're just making one product or have REALLY deep pockets. The variety you're talking about will not cannibalize sales, some like Whiskey some like Gin some like Vodka- most don't cross over from what they like. Discuss your concept with local retailers and bars that fit in with what you think will be your customer base. We grew 30-40% annually our first 3 years and about 20% since in our local market.

I have to disagree with Curtis, for the variety of products you're planning to produce a hybrid is the way to go. We have used one since day one and NEVER regretted it. (Curtis, curious to what your objections might be?). Don't buy too much equipment, you can always add and you're going to need cash after you open.

Good luck!