Rum Distillery for Sale
Distillery for sale. $500,000.00 is based on the physical assets: equipment, stock, aging stock in barrels. No real estate included. IP is also included: formulas, processes, etc. We are located in Charleston on the coast of Oregon. Our products are in about 50 liquor stores throughout Oregon. We have two satellite tasting rooms in Florence and Bandon. We may open a few more depending on the time it takes to sell the distillery. This price is also for this time 9/1/21 and subject to change. As we add tasting rooms, expand production, increase distribution, and add aging stock to our inventory the price will increase.
Several factors have increased the profitability of the distilling industry in the past year. First, the FET has been permanently reduced for the first 100,000 gallons of spirits produced keeping the tax liability down for small producers. Secondly, I was able to reduce the quota requirements for maintaining stock in the OLCC warehouse keeping our products available throughout Oregon. Sales increased during the COVID pandemic in liquor stores due to more people enjoying spirits at home. Thirdly the OLCC has increased the compensation in Oregon tasting rooms from 17% to 45% increasing the net profit on tasting room sales. This will be why I will increase our tasting room number in Oregon if I maintain ownership the next year or two.
I may be interested in a short term partnership with an exit strategy if the terms were ideal and a good working agreement in place.
I have had a number of tire kickers, so I am requiring interested parties to visit the distillery to weed out wasted time. We have sustained increasing sales each year since we started in 2013. Current gross sales are just under $300,000.00 annually. This is a very small operation, the last year I have done all distillery operations myself. It wouldn’t take much to double sales and distribution, I am not going to be the one to do it. I am getting older and my body is telling me to change careers. I enjoyed starting the distillery, but I am a tinkerer not a production and sales guy. It is time for it to change hands and reach its true potential.
We have twenty products currently on the market. I have several more in development to be released soon: Gin, Absinthe, Brandy (aging), and a few more rums.
The distillery will have to be moved. When it has to be moved can be discussed and planned. We can stage the buyout over a short period, as long as I have a clear exit strategy. We can negotiate for my assistance to learn the process. As I said, the price is based on the assets of the business.
The new owner will have to go through the TTB licensing process. This federal process is most thorough. The new owner will have to provide documentation showing where the money came from for the purchase and initial operation, showing that it is all legitimately acquired funds. No ATF violations, and no IRS issues that are unresolved or in conflict with this venture.
Location: Charleston, OR
Inventory: Not included in asking price
Real Estate: Leased
Building SF: 1,800
Lease Expiration: 1/31/2023
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Sale includes all distillery equipment, bottled spirits, aging spirits, and tasting room stock and fixtures.
Current market for distilled spirits is quite good. Sales has held steady throughout the events of 2020. The FET has been permanently reduced for the first 100,000 gallons, Oregon compensation set to increase from 17% to 45% in Oregon tasting rooms.
Growth & Expansion:
Ability to add 3 more tasting rooms is possible. The distillery must be moved, so expanding is a good possibility depending upon the new location selected. Several new products to be released soon. Distribution set up in CA, IL, ND, and a few other states.
Support & Training:
I can train to operate. Cost and time frame for this is negotiable.
Reason for Selling: Age, physical condition, and other ventures require I move on.
Note from the publisher : I periodically publish random business listings for sale that I find online. I do not have anything to do with the listing or the business offered. I share it because I learn a lot about business by studying other business opportunities.