Cracking the perfect micro-distillery plot to secure funding

Issue

Meet Jane. Jane is a craft beer enthusiast who enjoys trying new and unique beers. One day, she goes to an unfamiliar town and wants to check out some local craft breweries. However, she quickly discovers that finding them can be difficult.

The problem is, finding craft breweries in unfamiliar places can be time-consuming, difficult, and frustrating for enthusiasts like Jane. Without a comprehensive, up-to-date guide to breweries, she has to rely on generic travel websites or outdated information.

This problem is not unique to Jane. Craft beer tourism is on the rise, with over 10 million US adults identifying as craft beer enthusiasts. This growing trend has created a demand for easy to use, reliable and comprehensive guides to local breweries across the country.

Current solutions include generic travel websites that lack specific brewery information and outdated guides that don’t keep up with the rapidly changing craft beer industry. An innovative solution is needed to solve this problem and provide enthusiasts like Jane with an all-in-one resource to discover the best craft breweries in the country.

So why does the problem exist? The craft beer industry is growing rapidly and therefore there is a need for a reliable guide to discovery, and the information is not effectively optimized for craft beer tourism.

Solution / value proposition

Our micro-distillery business offers a unique and premium craft spirits experience to consumers through our handcrafted and locally sourced products. We aim to solve the problem of mass produced generic spirits flooding the market and lacking distinction.

Our extensive research and experimentation with botanicals and distillation techniques allow us to provide our consumers with a high quality spirit they will cherish and enjoy. The combination of our production process with locally sourced ingredients delivers a unique taste that cannot be replicated.

Our focus on sustainability and social responsibility is another value proposition that ensures our consumers get a product that is aligned with their values.

The customer will feel fulfilled and satisfied after experiencing our artisan spirits as they can enjoy a high quality product that aligns with their values and is unmatched by larger, more impersonal brands. Our unique flavors deliver a totally new taste sensation they’ll want to experience time and time again.

We found our solution by seeing a gap in the market for high-quality local products that aligned with people’s belief systems, especially around sustainability and social responsibility. Our distillation process involves the extraction of flavor and essence from our botanicals, providing a high quality taste experience that cannot be repeated.

Our solution is innovative, unparalleled and stunning as it combines traditional craftsmanship techniques with modern technology, to create a premium product that appeals to the sophisticated palate of modern consumers.

• We offer a product unmatched by mass-produced spirits
• We provide a unique flavor experience that cannot be replicated
• We focus on sustainability and social responsibility that are aligned with our customers’ values
• We use traditional and modern techniques to ensure consistency of taste and quality

Market validation

The micro-distillery industry has seen significant growth in recent years. According to Ibisworld, industry revenue is expected to grow at an annual rate of 6.3% to billion by 2025 . This is mainly due to a forecasting trend in the liquor industry, consumers are increasingly looking for high quality and unique. Additionally, changes in legislation allowing for the creation of craft distilleries have created an opportunity for smaller players to compete with larger, established brands.

One of the specifics of the market addressed is the high revenue per customer. Compared to large liquor companies that primarily sell mass-produced, low-cost products, micro-distilleries target a niche market of consumers willing to pay a premium price for high-quality, unique spirits. The average bottle of craft liquor typically sells for – , compared to – for mass-produced liquor.

Starting a micro-distillery business is a good idea because of the growing trend toward artisanal spirits, the ability to differentiate from mass-produced alcohol, and changes in legislation that are opening up the market. Additionally, the Covid-19 pandemic has sparked a growing interest in home drinking and a desire to support local businesses, providing a unique opportunity for micro distilleries to grow and thrive.

The market for craft spirits is also growing due to increased awareness and appreciation of local products. According to a survey by the American Craft Spirits Association, over 90% of consumers are willing to pay more for a locally made product . As more consumers become interested in supporting local businesses and investing in unique, high-quality products, the micro-distillery industry has the potential to continue to grow and thrive.

Consumers are willing to pay a premium price for craft spirits due to the high-quality ingredients, unique flavor profiles, and small-scale production methods. According to Nielsen, consumers are willing to pay up to 40% more for products perceived as artisanal . This indicates that there is a significant market for micro distilleries to capitalize on consumer interest in high quality, unique products.

In conclusion, the size of the total market available for the micro distillery industry is growing rapidly, and now is a good time to start a business in this market. The trend towards forecasting in the liquor industry, along with changes in legislation and consumer interest in local products, allows micro distilleries to differentiate themselves and thrive in a niche market.

business model

Our business model involves the production and sale of premium distilled spirits. We aim to generate revenue through the sale of our products to distributors and directly to customers. As we establish our brand, we plan to expand our product line and offer additional services.

Revenue Generation

Our main sources of revenue will come from the sale of our premium distilled spirits. We plan to distribute our products through established local and national distributors. Additionally, we plan to sell our products directly through our tasting room and website.

We also plan to offer private tours and tastings, which will generate additional revenue. Additionally, we will develop partnerships with local bars and restaurants to showcase our products and increase brand recognition.

Total income

We project our total revenues for the first year at .2 million. Our revenue growth will be driven by an expanding product line and increased brand recognition. In year three, we expect to generate over million in revenue.

Product range

Our product range currently includes handcrafted gin, vodka and whiskey which are made with locally sourced organic ingredients. As we wind down we plan to introduce additional spirits including rum and brandy.

We also plan to offer special edition and seasonal products to capitalize on market demand, which will be marketed through our website and tasting room.

Funding allowance

We are seeking million in seed funding to accelerate our production and marketing efforts. Specifically, funding will be awarded to:

• Expand our production facility to increase production capacity
• Product development and new product lines
• Marketing and advertising to increase brand recognition and awareness
• Expanding the team to ensure efficient daily operations
• Equipment upgrades to ensure high quality production and product consistency

Overall, our goal is to become a household name in the distilled spirits market, with a reputation for producing high quality, locally sourced products that meet the needs of the modern consumer.

Competition

Our main competitors in the micro-distillery business are other craft distilleries within a 100 mile radius of our location as well as major brands such as Jack Daniels and Jim Beam.

• What they do well: Other craft distilleries in our area have established strong reputations for producing high quality, unique spirits with distinct flavors. They have also established relationships with local bars and restaurants to distribute their products. Big brands have strong brand recognition and have secured top-notch platform space in liquor stores and supermarkets.
• What they do wrong: Many craft distilleries have limited distribution and are only available in their physical locations. They may also lack the resources to invest in marketing and advertising. Big brands can be limited in their ability to innovate and experiment with new flavors, as they focus heavily on consistency and maintaining their brand image.

We believe our unique selling proposition lies in our ability to combine the craftsmanship and quality of a craft distillery with the reach and distribution of a major brand.

• What makes us better: We have invested in a state-of-the-art bottling line that allows us to produce larger quantities of spirits while maintaining the quality and craftsmanship associated with small batch production. We have also secured distribution agreements with local retailers, restaurants and bars to extend our reach beyond our physical location.
• Our USPS: Our spirits are made using locally sourced organic ingredients, which sets us apart from big name brands that often use sub-par quality ingredients. We also offer educational tours and tastings at our distillery, providing a unique experience for consumers to learn about the distillation process and sample our spirit.
• Who is stealing from our customers and how: Our main concern is with other craft distilleries in the area. If they are able to build stronger relationships with local bars and restaurants or offer a wider range of spirits that appeal to our target demographic, they might be able to drive customers away from us. We also recognize the threat of big brands, which can use their large marketing budgets and brand recognition to compete with us on store shelves and in advertising.

Founding team

John Smith, co-founder and CEO

John Smith is an experienced entrepreneur and business executive with over 15 years of experience in the liquor industry. He holds an MBA from Harvard Business School and has a proven track record of developing successful strategies for large corporations and start-ups. He previously served as Chief Marketing Officer for a leading spirits company, where he oversaw the launch of several successful brands.

Jane Doe, co-founder and CFO

Jane Doe is a seasoned finance and operations professional with over 10 years of experience in the hospitality industry. She holds a degree in finance from the University of Pennsylvania and has worked for several major hotel chains, overseeing the financial operations of several properties. Her expertise in strategic planning, financial analysis and risk management makes her an asset to the team.

Mark Johnson, co-founder and chief distiller

Mark Johnson is an award-winning master distiller with over 20 years of experience in the craft spirits industry. He holds a degree in chemistry from MIT and has developed several critically acclaimed spirits, including a top-rated bourbon and a gold-winning gin. His expertise in distilling, blending and flavor development is unmatched in the industry.

Michael Brown, co-founder and creative director

Michael Brown is a talented creative director with over 15 years of experience in branding and marketing. He holds a degree in graphic design from the Rhode Island School of Design and has worked for several major advertising agencies, developing successful campaigns for major consumer brands. His passion for design, branding and storytelling drives the visual and creative direction of the company.

Our team’s primary goal is to create world-class, artisan spirits that reflect our passion and commitment to quality. We are dedicated to sourcing the finest ingredients, investing in the latest technology, and using the latest techniques to produce spirits that are both unique and delicious . We believe in the power of artisan spirits to bring people together and create memorable experiences.

We are the right people for the challenge as we bring a unique combination of skills, experience and passion to the table . Each member of our team has a proven track record of success in their respective fields, and we have a shared commitment to excellence that drives us to constantly improve and innovate. Our diverse backgrounds, perspectives and skills allow us to tackle challenges from multiple angles and find creative solutions.

We are convinced that our team can deliver our vision and make our adventure a huge success.

Traction

Showing evidence from investors that your business is growing and moving in the right direction is the primary goal of the pull slide. For our micro-distillery business, the following are the traction milestones we have achieved:

• We have gained market validation by conducting surveys and interviews with potential customers to identify their preferences and interest in our product.
• Our product has been well received by early adopters and enthusiasts who appreciate the quality of our spirits.
• We have seen an increase in sales, with a 50% growth in the last quarter .
• We have established distribution agreements with local bars and restaurants, leading to increased exposure and promotion of our product.
• Our online presence on social media platforms such as Facebook and Instagram has led to a tremendous increase in brand awareness.
• We acquired new customers through our email campaigns and referral program, leading to a 10% increase in customer loyalty .

These positive signals show that our business is heading in the right direction and on the right path to success. We believe that our focus on quality, customer satisfaction and innovation will enable continued growth and expansion.

Fund raising

As we continue to grow our micro-distillery business, we are seeking million in funding to accelerate our product development and release a beta for potential investors and consumers. This fundraising will allow us to reach several important milestones necessary for the success of our company.

How much money is needed?

We are seeking million in seed funding.

What is the money spent?

The funds will be used to cover several expenses, including:

• Product Development: Approximately 40% of funds will be used to complete product development, ensuring a high quality and differentiated product that stands out in the crowded market.
• Marketing: Approximately 30% of the funds will be allocated to various marketing activities to promote our brand and our distillery both locally and nationally.
• Acquisition of equipment: We will use 20% of the funds to purchase the equipment needed to start producing our products.
• Team Extension: Approximately 10% of funds will be used to hire new employees who will help us achieve our business goals.

What will be achieved with the money?

We are confident that once we receive seed funding, we can achieve the following milestones:

• Complete our product development and release a fully functional beta version ready for testing by potential investors and consumers.
• Start producing our products, which will be highly differentiated, premium and flavorful spirits.
• Build a strong brand and generate buzz through innovative marketing initiatives, such as events and partnerships with local bars and restaurants.
• Expand our team, hire new employees who will work full-time on development, marketing and sales.

We are confident that with the necessary funding, we will be able to achieve these milestones and grow our business into a major player in the distillery industry. We thank you for your consideration and hope you share our vision and want to invest.