Thriving 7 Y/O MI Craft Microbrewery + Taproom w/ Dual Revenue Streams

MI

Thriving 7 Y/O MI Craft Microbrewery + Taproom w/ Dual Revenue Streams
Contact Seller

Asking Price: Get Financing: $3,300,000

Cash Flow: $297,630

Gross Revenue: $1,323,217

EBITDA: N/A

FF&E: N/A

Inventory: $53,000*

Real Estate: $1,500,000

Established: 2012

*not included in asking price.

Thriving 7 Y/O MI Craft Microbrewery + Taproom w/ Dual Revenue Streams

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Business Description

Fast growing brewery with RE + $1M Assets-Sell side due diligence by 3rd party

This Michigan-based company is now offered for sale to qualified buyers exclusively through Raincatcher. The company is a microbrewer and leader in the craft beer segment with potential for continued profitable growth, making it an ideal opportunity for a strategic or investment buyer to enjoy lucrative cash flow and a rapid return on their investment.

Key considerations:

- There is an industry-wide tailwind for microbrew and craft beers, which have gained widespread consumer demand nationally while interest in traditional beers like Bud declined.

- Company offers a dual revenue stream with both wholesale business, and direct-to-consumer sales at the brewery’s taproom location. Its gross margins are enviably high, at 39% for 2017.

- Business is primed for expansion within the state of Michigan, where craft beer is a $1.2 billion industry; or nationally where craft beer is a $28 billion industry.

- The owners created a successful, transferable culture that focuses on high quality product and strong consumer satisfaction.

- 2017 Production was approx. 4500 barrels, 2018 projected to be close to 5500 barrels.

- The company hired a third party to conduct a sell-side due diligence on their accounting to verify the accuracy and integrity of their financials.

The company is at the forefront to capitalize on seminal growth in the niche premium craft beer market, the fastest growing segment of the $111 billion domestic beer and malt beverage industry. According to the Brewers Association, in the US this premium segment grew to $28 billion total sales, while the larger traditional beer segment declined. Meanwhile margins are stronger for craft beer as it commands higher prices with consumers, who are increasingly willing to pay up to $5 for a single serving of craft beer from a retail location like a supermarket, and above $10 from a hospitality location like a bar.

With the strong tailwind for this niche category, it is no surprise that global beer and alcohol producers have been snapping up craft breweries. AB-InBev, SAB Miller, Constellation Brands and others have been acquiring local brewers at a frothy pace. Smaller brewing outfits that wanted to participate in the public markets without being acquired by a global company also joined forces to form the Craft Brewers Alliance, a beer brewing company composed of five beer and cider brands. Shares of the alliance are traded on the NASDAQ exchange.

The buyer will be advantaged because the company is positioned to continue growth without needing big investments like a marketing campaign or infrastructure. The company enjoys plenty of capacity to support regional geographic expansion, either by adding new distributors or adding new hospitality locations as suits the buyer’s strategy. A strategic buyer will enjoy the company’s incredible net promoter score of 90 and its raving fan base of highly satisfied customers to expand its craft beers across a national footprint.

The asking price for this Brewing Company is $3.3 Million. This includes the real estate and all assets of the company.

To view the slide deck for this business, please click on the following link: https://listing.raincatcher.com/listing/mi-craft-microbrewery/
and follow these steps:

1) Select "Login to Sign NDA" to the right

2) Select "Not a Raincatcher buyer member yet? Click here to create an account and get exclusive access to our premium business-for-sale listings..."

3) Enter your information and click on "CLICK HERE TO SIGN NDA"

4) Scroll to the bottom of form, sign your name in the "Receiving Party" box, input your company title and then click "SUBMIT"

5) Click "Continue.."

6) Click button "ALMOST DONE! CLICK HERE TO TELL US WHAT YOU'RE LOOKING FOR"

7) Fill out form with your business acquisition preferences and click "SIGN UP"

8) Check your email for an email from Raincatcher Team "support@raincatcher.com" with the subject "your name, here’s your username and password to access the Raincatcher listings" --- your user name and password will be included in this email.

9) Click on the URL in the email https://listing.raincatcher.com/login

10) Enter your username and password and click on "Login"

11) Click on the listing under Signed Listings and click "View the Slide Deck". You can also submit questions about the listing by clicking on "ASK A QUESTION"

Detailed Information

Inventory:
Not included in asking price
Real Estate:
Owned
Included in asking price
Building SF:
5,474
Employees:
14
Facilities:
Facility is 5,474 sq ft: 1 taproom location with brewing facilities.
Competition:
The company competes with Breweries in Michigan to produce a wide range of beers in different styles that are marketed locally, regionally, nationally, and internationally. In 2017 Michigan's 330 brewing establishments (including breweries, brewpubs, importers, and company-owned packagers and wholesalers) employed 595 people directly, and more than 36,000 others in related jobs such as wholesaling and retailing. According to the Brewers Association, Michigan had 330 craft breweries in 2017. These varied widely in the volume and variety of beer produced, from small nanobreweries to massive multinational conglomerate macro-breweries. For context, at the end of 2017 there were over 6266 craft brewery locations in the United States. This is further broken down into 3817 microbreweries, 2232 brewpubs, and 202 regional breweries.
Growth & Expansion:
In the US the overall Beer and Malted Beverage industry represented sales of $111 billion in 2017, declining about 5% from 2016. The overall “Big Beer” market has been in decline as younger drinkers turn away from traditional beers like Bud, Miller and Coors. However the bright spot in the industry is the craft beer segment, which grew by a 10 percent compound annual growth rate over the past five years to $28 billion revenue. Craft beer is on a steady growth vector because younger drinkers, both millennial and Gen X cohorts prefer the niche brews and are willing to pay the premium price.
Support & Training:
TBD
Reason for Selling:
Owners retiring
Business Website:
http://listing.raincatcher.com/listing/mi-craft-microbrewery/
Contact Seller

Contact the Seller

(from currently available funds)
 
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Jason Thomas

Business Listed By:
Jason Thomas

Raincatcher

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Sponsoring Broker:
Keith Marlow


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