Midwest Premium Craft Spirits Distillery (RA 206)


Company Summary

This whiskey-centric distillery is a leading premium craft spirits maker, event space, and destination in a tourist-rich region of the Midwest, drawing over 100,000 visitors annually. Its unique setting and ability to host events provide visitors with an authentic, informative, and enjoyable experience, which is at the heart of its retail and wholesale success. The brand enjoys widespread recognition in its home state, and its diversified product portfolio focuses on whiskeys, followed by gin, rum, vodka, specialty liqueurs and ready to drink cocktails. The distillery has earned a reputation as an innovator and market leader, receiving multiple industry awards for its spirits. It reached profitability soon after it was established and continues to heavily invest in infrastructure to support its growth and success. The owners in this closely-held business are willing to help new owners through a reasonable transition period.

Growth Opportunities

Upward trend – The distillery’s compound annual wholesale growth rate has exceeded 35% since 2018.

Sales growth – The Company has a solid growth strategy in place to continue to increase revenue. The Company sold 7,100 9L cases in 2021, 8,600 9L cases in 2022, 11,000 9L cases in 2023, and is projecting sales of 12,700 9L cases in 2024.

Sales connections – The dedicated and growing sales team has succeeded in expanding the distillery’s products to multiple markets with specialty spirits retailers and distributors, large retail chains, and onpremise offerings.

Experienced team – The Company is known as a place where people want to work, helping it retain key employees and management team members with competitive salaries and benefit packages, along with continued investment in training and education.

Whiskey emphasis – More than 90% of its spirits revenue is earned from whiskey products, which has been one of the strongest segments in the national spirits marketplace.

Profitable luxury brand – The Company’s flagship brands are positioned as ultra-premium, high-quality products in the market, and have maintained a gross profit margin in excess of 50%.

Inventory and production capacity – The Company currently has 2,500 barrels of product aging in inventory to support future growth, with production capacity already in place to support sales growth projections. Over 80% of the Company’s barrel inventory is bourbon whiskey, with a growing proportion of single malt and other whiskeys.

Cash flow outlook – With $1.1M of EBITDA in 2023, additional strategic investments and operational changes are expected to add an additional $1.2M+ of annual cash flow benefits to the Company’s already-strong existing EBITDA by 2027.

Investment Highlights

Authentic end destination – The Company’s 100,000 annual visitors enjoy craft cocktails, food options, distillery tours, retail offerings, and tasting experiences, making the distillery a key tourism destination in the region.

Market penetration – The brand enjoys widespread statewide recognition in its home state and out-ofstate distribution is established and growing in several other states.

Proven success – Bucking the trend in the craft distillery sector of a slow ascent to profitability, the Company has been profitable since 2018.

Special events – The distillery is fully set up to host weddings and corporate and community events.

                                    2019                          2020                          2021                          2022                          2023

Revenue                 $1,900,000               $2,200,000                $3,800,000                 $4,600,000                $4,900,000

Adjusted EBITDA    $57,000                  $147,000                   $1,300,000                 $1,600,000                $1,100,000

Non-Disclosure Agreement