Failure Rates

[Palmetto Coast]

I read somewhere that the failure rate for microbreweries is 1 in 4 whereas for small business start-ups it is 1 in 2. Does anyone have any knowledge of this for micro-distilleries?

Also, I read where Bill Owens estimated 88 micro-distilleries in 2007, and heard somewhere else roughly 186 as of May 15, 2010. Are these numbers coming from ADI? Has ADI looked at compiling statistics like this, and tracking trends and such? I think it would be a great idea. With so many people on here putting together business plans, I think it would be easy to charge a few bucks and find people willing to bite.

Todd

[porter]

With so many people on here putting together business plans, I think it would be easy to charge a few bucks and find people willing to bite.

Todd

Not the best choice of words. I really thought this to be a support forum. Maybe information like that would come with membership, but to charge extra for it......seems a bit anti-support group like.

[Jonathan Forester]

Yes, Bill has solid numbers on the amount of distilleries, and both the 2007 and 2010 numbers you state are low. In 2007 there were well over 100, and that number of 186 was accurate in fall 2008, and there are over 210 right now, with lots more on the way. The speed with which new distilleries are being built is increasing. I wouldn't be surprised if there are 250+ artisanal distilleries in North America by this time next year. Heck, four are opening this year in Brooklyn, NY alone, and I have been contacted in the past four months by seven planned distilleries, to consult to, or work with.

if you want some numbers, give Bill a call. He will be glad to chat.

I read somewhere that the failure rate for microbreweries is 1 in 4 whereas for small business start-ups it is 1 in 2. Does anyone have any knowledge of this for micro-distilleries?

Also, I read where Bill Owens estimated 88 micro-distilleries in 2007, and heard somewhere else roughly 186 as of May 15, 2010. Are these numbers coming from ADI? Has ADI looked at compiling statistics like this, and tracking trends and such? I think it would be a great idea. With so many people on here putting together business plans, I think it would be easy to charge a few bucks and find people willing to bite.

Todd

[cowdery]

This is probably all too new to be talking about failure rates. For one thing, define failure. Presumably, a struggling business that closes is considered a failure, but a struggling business that sells (regardless of the price) is considered a turn-around. The extent to which the original business 'failed' may be exactly the same in both cases but they are viewed completely differently.

I would estimate that very few, if any, micro-distilleries are fully going concerns. Most are still burning through the initial investment, even if they are on track to become sustainable. There are a great many cases, for example, where everybody is getting paid but the owner.