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.
- 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 $2.8 Million. This includes the real estate and all assets of the company.
|Business||N/A||Asking Price||$2.8 Million|
|Location||MI||Real Estate||Included – Facility is 5,474 sq ft.|
|Yrs In Business||7.5 years||FF&E||$ 1 million (cost basis value)|
|Employees||14 between full and part time||Terms||Negotiable|
|Hours||Flexible||Ownership||LLC, members owns 100%|
|Facilities||1 taproom location with brewing facilities||Reason for Sale||Owners retiring|