Distillery Business Plan Template
If you want to start a Distillery or expand your current Distillery, you need a business plan.
The following Distillery business plan template gives you the key elements to include in a winning Distillery business plan.
Distillery Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a craft whiskey and bourbon distillery located in the main commercial district of [Location Name]. The Company has purchased a building that was previously used as a distillery and plans to open an adjoining tasting room and retail store. The distillery is centrally located to facilitate easy distribution of its products.
Products Served
The Company will produce a variety of American whiskeys and bourbons:
- High-end premium
- Super premium
- Premium
- Value
All spirits will be made from cereal grains such as rye, barley or corn mash, with a select few flavor varieties.
Customer Focus
[Company Name] will primarily serve consumers aged 21 and above, living within a 100-mile radius of the distillery. The demographics of these customers are as follows:
- 509,000 residents
- The average income of $52,600
- 41.6% married
- 49.6% in Management/Professional occupations
- Median age: 34 years
[Company name] will also target local restaurants, hotels, and grocery stores.
Management Team
[Company Name] will be solely owned and operated by [Founder’s name], who has been distilling whiskey for more than [x] years. He worked with [xx company] as distiller assistant for [x] years before being promoted to head distiller in [year]. He worked as head distiller for [x] years before starting [Company Name]. As such, [Founder] has an in-depth knowledge of the distillery business, particularly on the operations side (e.g., running day-to-day operations), as well as a working knowledge of the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently no distillery in [Location Name] where the company is opening its manufacturing facility. In addition, [Company name] has surveyed the local population and received extremely positive feedback saying that they explicitly want to purchase the whiskey when it is released.
- The Company’s will produce craft whiskey, using no artificial processes or additives, making it a superior product.
- The Company’s location is in a high-volume area and thus be highly convenient to significant number of passersby each day.
- The management team has a track record of success in the distillery business.
Financial Highlights
[Company Name] is currently seeking $430,000 to launch its distillery business. Specifically, these funds will be used as follows:
- Company design/build: $280,000
- Working capital: $150,000 to pay for marketing, salaries, and lease cost until [Company Name] reaches break-even.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in the main commercial district of [Location Name], is a craft whiskey and bourbon distillery. The Company has purchased a building that was previously used as a distillery, and plans to open an adjoining tasting room and retail store. The distillery is centrally located to facilitate easy distribution of its products.
The Company’s primary service includes producing high-quality, craft whiskey and bourbon that not only enrich celebrations and traditions but also bring a touch of the extraordinary into daily life. It combines time-honored distilling with new methods and unique recipes to create a range of classic and craft beverages that everyone can enjoy.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for distilled products who seek to provide an upscale place for offering a selection of unique whiskey and bourbon. [Company Name] will work to become the best craft distillery in the state, offering the highest-quality whiskey and bourbon experience.
Upon finding the ideally-located former distillery, and surveying the local customer base, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] is currently undergoing due diligence on the distillery property to assess the steps needed to bring it to an operational state.
Since incorporation, the company has achieved the following milestones:
- Found location and submitted an offer of purchase
- Developed the company’s name, logo, and website
- Determined the list of products to be offered
- Began recruiting key employees with experience in the distillery business
[Company Name]’s Products/Services
The Company will produce a variety of American whiskeys and bourbons:
- High-end premium
- Super premium
- Premium
- Value
III. Industry Analysis
[Company Name] will compete against other craft distilleries and major regional or national chains. The US Whiskey and Bourbon Distillery industry has experienced robust growth over the past five years due to favorable economic conditions, including an increase in consumer spending on alcohol. There were 657 whiskey & bourbon distilleries in the US, with a market size of nearly $5 billion. The global spirits market has grown at a CAGR of 4.3% to $142.9 billion and is expected to grow at a CAGR of 2.2% over the next 5 years.
The demand for premium, super-premium, and flavored spirits, which include the craft and artisanal varieties, has increased among global consumers. The craft spirits market has enjoyed growing popularity in bars, and beverage professionals have been incorporating craft spirits in cocktails through creative applications to cater to this rising demand.
Moreover, flavored spirits have become increasingly popular, especially among upwardly mobile and trendy young people. This is one of the reasons many distillers have launched innovative twists on their classic brands.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and its surrounding areas. The area it will serve is populated mostly by middle-class to affluent people; as a result, they have the means to pay for higher-quality service.
The precise demographics of the town in which the distillery operates is as follows:
| Omaha | |
|---|---|
| Total Population | 426,835 |
| Square Miles | 6.89 |
| Population Density | 3,789.20 |
| Population Male | 48.04% |
| Population Female | 51.96% |
| Target Population by Age | |
| Age 18 to 24 | 11.87% |
| Age 25 to 34 | 14.70% |
| Age 35 to 44 | 12.15% |
| Age 45 to 54 | 13.54% |
| Age 55 to 64 | 11.82% |
| Target Population by Income | |
| Income $50,000 to $74,999 | 11.16% |
| Income $75,000 to $99,999 | 10.91% |
| Income $100,000 to $124,999 | 9.07% |
| Income $125,000 to $149,999 | 9.95% |
| Income $150,000 to $199,999 | 12.20% |
| Income $200,000 and Over | 32.48% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Individual Buyers: The Company will operate a tasting room and retail store in [Location Name] in its initial phase to target the individual buyers residing in the nearby areas. The community is affluent and demand for premium spirits remains high throughout the year.
- Retailers: The Company will also supply beverages to various liquor retailers. These stores will account for the bulk of the company’s customers, accounting for more than half of product sales.
- Restaurants: The Company will also supply its products to local restaurants. These restaurants will account for a significant portion of the market.
- Clubs & Bars: The Company will also supply its products to local clubs and bars in [Location name].
V. Competitive Analysis
Direct & Indirect Competitors
Andaz Distillery
Andaz Distillery is the producer of distilled beverages and distributor of premium-branded distilled spirits. The company’s product portfolio includes bourbon whiskey, scotch, tequila, rum, and ready-to-drink cocktails. It also engages in vertical integration, operating numerous retail locations, and passing on significant cost savings to consumers. The company also sells wine accessories like decanters, as well as cigars, and other products. The company focuses on expanding its geographic reach by promoting and distributing its products in new geographies.
B&B Spirits
B&B Spirits is one of [location Name’s] major spirits and wine companies. The company has offices worldwide and distributes its products in nations around the globe. The company’s collection of wines and spirits includes more than 25 brands. Spirits are a part of the company’s range of mid-priced to super-premium products.
The company is the largest full-service beverage and alcoholic beverage distributor in the [location name]. The store contains the area’s greatest selection of spirits (from the most popular to the rarest), as well as wines, beers, ales of all types, bar supplies, and related things.
Kieland Spirits
Kieland Spirits is the leading spirit producer in the world. The company’s principal products include Whisky, Gin, Vodka, Rum, Beer, Liqueur, Wine, Saki, Tequila, and Ready to Drink alcoholic beverages.
The company owns manufacturing production facilities across the world. The distillery also offers complimentary tastings, and the store’s inventory includes thousands of types of wines, liquor, and beer and a walk-in wine room includes some rare bottles.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with the wholesale customers.
- Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his experience to create the best-tasting products. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
- Transparency: To continue to assure customers of the quality of [Company Name]’s products, customers are welcome to tour the distillery for a tasting and experience.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offers the finest distillery products at a competitive price
- Convenient location in the heart of the city
- Rotating products to offer the latest selections
- Provides excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents living within a 100-mile radius of the location, aged 21 and above. The Company’s promotions strategy to reach the audience includes:
Sampling
[Company Name] employees will initially give free product samples to enable customers to taste the quality and variety of the beverages and learn about the company.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for people to experience its distillery products.
Pre-Opening Events
Before opening [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Online Marketing
[Company name] will invest resources in two forms of geographically-focused internet promotion—organic search engine optimization and pay-per-click advertising. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Company name] as the trustworthy, well-qualified distillery that it is.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their products for the first time.
Pricing Strategy
Pricing strategy is one of the most important functions that any business can plan for attracting customers. Prices are a foundational element of a company’s revenues—if managed carefully, they can generate high profits.
[Company Name]’s pricing will be appropriate for the high-quality and level of service associated with the distillery, so that customers feel they receive great value.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:
Service & Administrative Functions
- Production
- Deliveries and operations
- Sales and Marketing
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Hiring and training staff
Milestones
[Company name]’s long-term goal is to become the dominant manufacturer of distillery products in the [Location] and seeks to be the standard by which other distilleries are judged.
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] will be solely owned and operated by [Founder’s name], who has a degree in Bio-Chemistry (B.Sc.) and also holds a Master’s Degree in Business Management. He worked with [xx company] as distiller assistant for [x] years before being promoted to head distiller in [year]. He worked as head distiller for [x] years before starting [Company Name]. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of starting a distillery.
Hiring Plan
[Founder] will serve as the Chief Executive Officer. In order to launch the distillery, we need to hire the following personnel:
- Human Resources and Admin Manager
- Warehouse Manager
- Merchandise Manager
- Store Manager
- Sales and Marketing Manager
- Delivery personnel
- Accountants / Cashiers
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the sales of bottled whiskey and bourbon to its customers.
The major costs for the company are packaging costs, salaries, and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
Financial Highlights
[Company Name] is currently seeking $430,000 to launch its distillery business. Specifically, these funds will be used as follows:
- Company design/build: $280,000
- Working capital: $150,000 to pay for Marketing, salaries, and equipment costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Number of wholesale contracts per year | |||
|---|---|---|---|---|
| FY 1 | 45 | FY 1 | 5 | |
| FY 2 | 55 | FY 2 | 10 | |
| FY 3 | 65 | FY 3 | 15 | |
| FY 4 | 75 | FY 4 | 20 | |
| FY 5 | 85 | FY 5 | 25 | |
| Average order price | $28.00 | Average order | $250 | |
| Annual Lease (per location) | $60,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
