DISTILLERY BUSINESS PLAN GUIDE
Do you have the intention of starting up a distillery plant? If your answer is in the affirmative, then you are on the right page.
We will be giving out the full information on how to write a comprehensive distillery business plan.
For your benefits as well, we have crafted up the entire requirements for starting and running a distillery business.
And also went further to analyse and draft a sample distillery marketing plan template, supported by concrete guerrilla marketing concepts for your distillery business.
REQUIREMENTS TO START OFF A DISTILLERY BUSINESS
As it is with the liquor business, the art of distillery has continued to gain ground as the demand for liquor grows by the year. Advancement in technology and improvement in taste have driven a lot of entrepreneurs to develop new ways of distilling different kinds of liquor. For you to have successful distillery, you need to have understood the business details so far and the process of distilling, failure to do this might be the beginning of failure in the business.
So before you ever think of writing a distillery business plan to be presented to investors or financiers for your business, ensure that you know everything you need to know about how to run a successful distillery.
Here is a sample business plan for starting a distillery.
- Distillery Business Overview
There are many varieties of drinks produced in the distillery industry (Spirits and Whiskey). The United States Government is responsible for regulating the distillery industry and the Bureau of Alcohol, Tobacco and Firearms (BATF) enforces Federal Statutes as it concerned with producers of alcoholic drinks
Regulators do not distinguish the distilleries in terms of sizes. What this means is that all distillery are considered equal. And that is the main reason why most small distilleries compared to small brewers find it difficult to grow.
Unlike the distillers, the brewers enjoy some more relaxed governmental control.
EXECUTIVE SUMMARY OF A DISTILLERY BUSINESS PLAN
HopeWell Distillery is a standard distillery plant that will be situated at the Industrial Park in the city of Florida. The business has been able to get a long-term lease of about 20 years for a building at a well strategic location. We have an option to renew the lease over another long period with an agreement that is quite favourable to our Company.
We have been able to secure the right government approval for this kind of business we are embarking upon and not only that, efforts have been put into place for the swift transportation of raw materials and finished products to and from the distillery.
HopeWell Distillery will produce high quality and finely distilled alcoholic beverages as Whisky, Vodka, Rum, Gin, Spirit, Flavoured Liqueurs and a whole lot of many varieties that will allow us to compete conveniently with our competitors in the industry within the United States of America and other parts of the world.
We are in this kind of business to make profit and not only that, we want to also deliver to our customer’s great value for what they are spending for. They will be part of the success story of HopeWell Distillery.
When these customers visit our depot, we will ensure that they get the best treatments. We have put in place a CRM software that will assist us in monitoring and having a personal relationship with our customers.
HopeWell Distillery will be run by the James Hope and John MaxWell Family. James Hope is the Chief Executive Officer of the organization and he is a Graduate of Bio-Chemistry (B.Sc) and also holds a Master’s Degree in Bio-Chemistry and also an Master’s Degree in Business Management.
He has over 20 years of good working experience with companies in the same Distillry industry. He rose to the position of a Senior Partner in his previous employment before starting up HopeWell Distillery.
HopeWell Distillery will operate a licensed distillery with regard to a high standard as required in the industry.
Our products are not produced for just the local market. We are going to have good presence in other countries of the world.
This is a list of some of the products that will be found in our stores
- Wild Blueberry
- Cocktail Bitters
- Basic ethyl alcohol
OUR VISION STATEMENT
Our vision at HopeWell Distilleries is to establish a well standard plant whose end products will be sold all over the world and not only in the United States.
OUR MISSION STATEMENT
Our mission is to establish a well standard plant that will manufacture a wide range of distillery products for all class of earners. We will develop a distillery firm that will be among the top 10 in the United States of America.
OUR BUSINESS STRUCTURE
At HopeWell Distillery, we will put so much effort in having a standard structure. We are established to compete with other top distilleries in the industry. Our structure will hence synchronise with the type of growth we visualize for the business.
We will take so much seriousness in employing only qualifies, hardworking and customer focused personnel who are ready to carry along with us the dream of the HopeWell family and assist us in building a successful business that will be of benefit to all stakeholders of the company.
We have therefore decided to employ qualified people to hold the following positions
- Chief Executive Officer
- Plant Manager
- Warehouse Manager
- Human Resources Manager
- Merchandise manager
- Sales and marketing Manager
- Information Technologists
One of our major strength at HopeWell Distillery is the experience of our team. We can boast of the best management team in the industry with various experiences at their individual department. They have great knowledge on how to build a business from the scratch and make it great in a short period of time.
We also consider our wide varieties of liquor and our special blended flavoured drink recipes as a comparative advantage over our competitors
One major weakness that may work against us at HopeWell Distillery is the fact that we are a startup distillery plant and at the moment the company might be quite incapacitated about getting the right finances to engage in a wide publicity that we have plans to give the business.
We are faced with a wide range of opportunities in the distillery business. This can be considered as a result of the wide consumption of distilled products by Americans. We have been able to conduct a comprehensive market survey and feasibility study to position us to tap into the existing market for distilled products.
One of the major threats that we might like face is unfavourable government policies as well as economic downturns. Economic downturns affect negatively the purchasing strength of the people.
The trend at the moment in the distillery industry is that mega-distillers now in some ways create micro-distillery to boost sales and then use that as an opportunity to move closer to the locals in their various target markets
And also in the process of forging ahead of other distilleries, a lot of distilleries are considering trying out new flavours and blends. An instance is the use of glassware as against the conventional use of copper pot to produce spirit.
Another common trend in the industry is that distillers now target the high spenders among consumers through the production of luxurious and expensive drinks and also have various classes of drinks for the common people.
OUR TARGET MARKET
The market is large enough and we are capitalizing on this. We are not going to be limited to targeting a specific group of people, but everyone that drinks alcohol and those who would love to taste out our whiskey and other varieties of alcohol that we produce.
We were able to gather some data during our feasibility studies to draft our sales forecast. Please find below the sales projections that we have been able to come up with feasible for the first year of operations
- First Year: $300,000
- Second Year: $800,000
- Third Year: $1,600,000
OUR MARKETING STRATEGY
From the results gotten from our market survey and feasibility study, we have been able to devise some strategies to help us penetrate the available market. We were able to get detailed information that we will use to design our business to attract customers over time and also for our products to be well acceptable and be more favoured when compared to our competitors.
Our strategies for growth and development was developed by experts who have knowledge and good understanding of the distillery industry.
- Registering the business – $800
- Legal expenses for getting licenses – $1400
- Marketing expenses – $3,900
- Hiring Business Consultant – $3000
- Insurance – $2500
- Rent for 12 months – $110,000
- Distillery Construction – $100,000
- Other startup cost – $2500
- Hardwares – $3000
- Distillery Equipments – $110,000
- Vans for distribution – $100,000
- Website creation – $500
- Opening party – $10,000
- Miscallenous – $10,000
We will need an estimate of $1,500,000 to start up successfully our distillery plant.