Distillery Business Plan
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Below is a template to help you create each section of your Distillery business plan.
Executive Summary
Business Overview
Ironstone Distillery is a startup company located in Austin, Texas. The company is founded by Terrence Downery, a distillery manager who has amassed twenty years of experience in the art of whiskey-making. Terrence has a passion for spirits and is dedicated to excellence in producing every casket of the liquid gold called, “whiskey.” With the vast wealth of experience accumulated, Terrence Downery is partnering with John and Margery Thatcher, former distillery owners from Scotland, to produce a distillery that will specialize in small-batch, handcrafted spirits, including whiskey and rum. The company will use locally-sourced ingredients and spirit-making secrets and methods to align the flavor and spirit distillation with the high quality and standards. In addition to the production and distillery areas, Ironstone Distillery will feature a welcoming tasting room, where customers can enjoy samples of the spirits firsthand.
Product Offering
The following are the products and services that Ironstone Distillery will provide:
- Distilled spirits, including whiskey, gin, vodka and rum
- Distillery distinguished member club
- Tasting room open every day
- Distillery tours for guests
- Distillery spirits and related gift items
- Event venue and catering experiences
Customer Focus
Ironstone Distillery will primarily target all adults in the Austin regional area, and secondarily the adult population of Texas. They will target small companies who need distillery services to age spirits. They will also target adults who enjoy winery membership clubs. They will target corporations and associations to utilize the distillery as an event venue with catering services.
Management Team
Ironstone Distillery is owned and operated by Terrence Downery, in a corporate partnership with John and Margery Thatcher, former owners of a distillery in Scotland. Terrence and the Thatchers have recruited a former associate, Thomas Duggery, to be the Distillery and Tasting Room Manager.
Terrence Downery is a graduate of the University of Texas at Austin, where he graduated with a bachelor of science degree in distillation. He has been the distillery manager for a company based in Dallas for over ten years, with extensive experience in the science of and distillation of spirit-making.
John and Margery Thatcher formerly owned a distillery in Scotland, which was focused on the making of whiskey and rum. The company was in business for twenty years, before being purchased by a large conglomerate whiskey producer.
Thomas Duggery, a former associate and distillery manager for the Thatchers for over fifteen years, is dedicated to the art of spirit-making and is well-experienced in the process of producing fine spirits. He will be the Distillery and Tasting Room Manager.
Success Factors
Ironstone Distillery will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of Ironstone Distillery personnel.
- Excellent whiskey and rum products, packaged in gift sets and in carton pricing.
- Whiskey club memberships with exclusive offers and whiskey-tasting experiences.
- Partnering with smaller enterprises to distill spirits; retail sales to customers for that product.
- Ironstone Distillery a reasonable pricing structure for exclusive whiskey and rum products, packages and related gift items. There is little competition in the state.
Download the Distillery business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Ironstone Distillery is seeking $200,000 in debt financing to launch its Ironstone Distillery. The funding will be dedicated toward securing the distillery and tasting room spaces and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Distillery and tasting room build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph below outlines the financial projections for Ironstone Distillery.
Company Overview
Who is Ironstone Distillery?
Ironstone Distillery is a newly established, full-service distillery and tasting room in Austin, Texas. Ironstone Distillery will be the superior choice for whiskey and rum production and tasting in Austin and the surrounding communities. Ironstone Distillery will provide a select menu of whiskey and rum products, packages and membership opportunities for any adult or corporate experience desired. Their full-service approach includes a beautiful tasting room setting, in addition to a dining area and catering services.
Ironstone Distillery will be operating in the production of whiskey and rum on the premises and will also distill small batch orders from neighboring producers in the state. The team of professionals are highly qualified and experienced in measuring, mixing, preparation and distilling of spirits. Ironstone Distillery will assist whiskey and rum aficionados with the tasting room and distillery services close at hand in Austin, along with offers of premium gift packages and club membership services available. The dining area and tasting room will also be available as an event venue and catering area. Delivering the best customer service is of paramount importance to the staff of Ironstone Distillery and every selection of spirits comes with conversation and encouragement from the Distillery staff.
Ironstone Distillery History
Ironstone Distillery is owned and operated by Terrence Downery, who is a graduate of the University of Texas at Austin, where he graduated with a bachelor of science degree in distillation. He has been the distillery manager for a company based in Dallas for over ten years, with extensive experience in the science of and distillation of spirit-making. Terrence is a partner of John and Margery Thatcher, who legally formed a partnership with him to create the Ironstone Distillery.
John and Margery Thatcher, partnering with Terrence Downery, formerly owned a distillery in Scotland, which was focused on the making of whiskey and rum. The company was in business for twenty years, before being purchased by a large conglomerate whiskey producer.
Since incorporation, Ironstone Distillery has achieved the following milestones:
- Registered Ironstone Distillery, a legal partnership, to transact business in the state of Texas.
- Has a contract in place at the distillery and adjoining buildings; will set up its 5,000 square foot office.
- Reached out to numerous contacts to include advisors and associates to help in making decisions regarding Ironstone Distillery.
- Began recruiting a staff of customer service employees and distillery workers, with office personnel included.
Ironstone Distillery Services
The following will be the services Ironstone Distillery will provide:
- Distilled spirits, including whiskey, gin, vodka and rum
- Distillery distinguished member club
- Tasting room open every day
- Distillery tours for guests
- Distillery spirits and related gift items
- Event venue and catering experiences
Industry Analysis
The production of spirits and distillery industry is expected to grow over 3% during the next five years to over $24 billion.
The growth will be driven by increased interest in small batch craft spirits, especially in small distilleries and produced by experienced distillery workers.
The growth will also be driven by increased consumption of spirits, as the markets for wine and beer continue to give way to upscale spirits and the experiences that go with them.
Costs will likely be reduced as the supply chain of wood for caskets and barrels is increased, along with robotic bottling processes for the spirits increase.
The economy will continue to grow, which will indicate leisure time for many individuals who will want to indulge in finer beverages than beer or wine; looking toward spirits to enhance those experiences.
Download the Distillery business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Ironstone Distillery will target those individuals who are looking for small batch, craft spirits and those groups seeking an event venue or distillery experience in Austin, Texas. They will target .
The precise demographics for Austin, Texas are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Ironstone Distillery will primarily target the following customer profiles:
- Adults in the Austin regional area
- Liquor distributors and liquor chain stores in Texas
- Restaurants and bars in the regional area
- Small companies who need to lease distillery services to age spirits.
- Adults who enjoy winery membership clubs.
- Corporations and associations seeking an event venue with catering services.
Competitive Analysis
Direct and Indirect Competitors
Ironstone Distillery will face competition from other companies with similar business profiles. A description of each competitor company is below.
Oak Knoll Distillery
Oak Knoll Distillery is a direct competitor owned and operated by Jay Ramison, who established the distillery in 2022 in Dallas, Texas. The distillery is operating; however, it has not yet produced the first batch of spirits. In the meantime, the distillery is offering gift packages for November and December 2023, as an introductory gift set for the holidays. The distillery is capable of distilling up to 100 cases of whiskey, rum, vodka and gin per year. The handcrafted spirits are priced on the high side of the index due to the limited quantity and highly-desirable handcrafting method used to distill the spirits.
Oak Knoll Distillery has created a collaborative agreement with a neighboring winery, Silver Sands Winery, to produce events together, including country folk fairs, musical concerts, outdoor barbecues and other entertainment for the general public on the property of Silver Sands Winery. Oak Knoll spirits and Silver Sands wines will be sold and served to attendees, along with package pricing for spirits and wines sold by the case.
Gold Rock Beverage Distributors
Gold Rock Beverage Distributors is an indirect competitor to Ironstone Distillery, with thirteen employees and 34 drivers who distribute alcoholic beverages throughout Texas. Headquartered in Dallas, the company has been in business for 10 years and is owned by Ray and Hollis Somers, brothers and business partners.
The beverage distributors service every city in Texas over the population size of 800 individuals, traveling throughout the state to stock inventory in bars and liquor stores on delivery schedules. Spirits include those big name brands that are distilled on large corporate properties. The pricing of these spirits is lower than those of the handcrafted, small-batch spirits; however, the results indicate the price difference and point toward the best flavor profile in the small-batch spirits.
Travis & Hitch Distillery
Travis & Hitch Distillery are direct competitors to Ironstone Distillery with a few exceptions. The distillery is owned by the Pearson Family Trust, which has overseen the operations and all business matters for over 75 years. The only spirits produced on the property are whiskey in a variety of flavor profiles. Batches are limited to 100 casks each and are only produced once every five years, making these spirits highly sought-after for special occasions and events that carry a very high price tag.
The Pearson Family Trust, currently run by David and Tristen Pearson, is in negotiations to be bought by Langley Wine & Spirits, one of the largest distilleries in the U.S. If the offer is accepted, this distillery location will be closed and the spirits from this distillery will be produced on site at the main headquarters in Dallas. Failing that, the ingredients of the spirits will be altered and made suitable for mass production at the larger distillery, optimizing the name and reputation of the Travis & Hitch Distillery, while reducing costs in the production of inferior spirits.
Download the Distillery business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Ironstone Distillery will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly qualified team of Ironstone Distillery personnel.
- Excellent whiskey and rum products, packaged in gift sets and in carton pricing.
- Whiskey club memberships with exclusive offers and whiskey-tasting experiences.
- Partnering with smaller enterprises to distill spirits; retail sales to customers for that product.
- Ironstone Distillery a reasonable pricing structure for exclusive whiskey and rum products, packages and related gift items. There is little competition in the state.
Marketing Plan
Brand & Value Proposition
Ironstone Distillery will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees that is able to provide distinctive distillery production of whiskey and rum in handcrafted, small-batch casks or caskets.
- Facilities large enough to offer to smaller, regional spirit producers who need distillery services.
Distillery tours - Distillery, dining area, and tasting room event venues, including catering services
- Handcrafted, small-batch spirits with justifiable higher-price ranges, due to the quality of creation, preparation and distillation of whiskey and rum.
Promotions Strategy
The promotions strategy for Ironstone Distillery is as follows:
Word of Mouth/Referrals
Terrence Downery has built up an extensive list of contacts over the years by providing exceptional distillery service and expertise for his customers. In addition, co-owners John and Margery Thatcher have also built up a significant number of contacts, both in the U.S. and Scotland, who will want to know of and sample the new distillery spirits. With the referrals and word of mouth communication, there will be a certain amount of publicity and attention given to the Ironstone Distillery upon opening.
Professional Associations and Networking
Terrence Downery, along with John and Margery Thatcher, will represent Ironstone Distillery at the national and international associations that are directly connected to the distillery industry. They will network with other members to spread the word and offer invitations to visit and tour the facilities.
Print Advertising
Print advertising will be conducted through premier upscale magazines and the Wall Street Journal’s Friday Magazine, which outlines upscale lifestyles, food and trends. In addition, whiskey aficionado magazines and periodicals will be targeted for introductory specials and packages for the first three months of business.
Website/SEO Marketing
Ironstone Distillery will utilize a developer and designer to create their website and embed it with SEO optimization. The website will be well organized, informative, and list all their services that Ironstone Distillery is able to provide, including the event venues and catering available for those events. The website will also list their contact information and offer reservation times for tours and holiday events.
Pricing
The pricing of Ironstone Distillery will be in the expensive range and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Ironstone Distillery.
Operation Functions:
- Terrence Downery will be a Partner and President of the company. He will oversee all staff and manage client relations.
- John Thatcher will be a Partner and Vice President of the company. John will spend much of the time overseeing the distillery and operations on the grounds.
- Margery Thatcher will be a Partner and Staff Accountant. She will manage the office administration and all financial administration.
- Thomas Duggery, a former associate and distillery manager for the Thatchers for over fifteen years, will be the Distillery and Tasting Room Manager.
Download the Distillery business plan template (including a customizable financial model) to your computer here <–
Milestones:
Ironstone Distillery will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract for distillery and adjoining buildings
- 5/15/202X – Finalize personnel and staff employment contracts for the Ironstone Distillery
- 6/1/202X – Finalize contracts for Ironstone Distillery distributors
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Ironstone Distillery distillery and office
- 7/1/202X – Ironstone Distillery opens its tasting room for business
Management Team
Ironstone Distillery is co-owned and operated by Terrence Downery, who is in a corporate partnership with John and Margery Thatcher, former owners of a distillery in Scotland. Terrence and the Thatchers have recruited a former associate, Thomas Duggery, to be the Distillery and Tasting Room Manager.
Terrence Downery is a graduate of the University of Texas at Austin, where he graduated with a bachelor of science degree in distillation. He has been the distillery manager for a company based in Dallas for over ten years, with extensive experience in the science of and distillation of spirit-making.
John and Margery Thatcher formerly owned a distillery in Scotland, which was focused on the making of whiskey and rum. The company was in business for twenty years, before being purchased by a large conglomerate whiskey producer.
Thomas Duggery, a former associate and distillery manager for the Thatchers for over fifteen years, is dedicated to the art of spirit-making and is well-experienced in the process of producing fine spirits. He will be the Distillery and Tasting Room Manager.
Financial Plan
Key Revenue & Costs
The revenue drivers for Ironstone Distillery are the revenues they will receive for their products and services.
The cost drivers will be the overhead costs required in order to lease and install the Ironstone Distillery. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Ironstone Distillery is seeking $200,000 in debt financing to launch its distillery and tasting room business. The funding will be dedicated towards securing the distillery and office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print marketing and association memberships. The breakout of the funding is below:
- Distillery and tasting room build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Distillery business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Distillery Customers Per Month: 900
- Average Revenue per Month: $195,000
- Distillery and Tasting Room Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Distillery Business Plan FAQs
What Is a Distillery Business Plan?
A distillery business plan is a plan to start and/or grow your distillery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Distillery business plan using our Distillery Business Plan Template here.
What are the Main Types of Distillery Businesses?
There are a number of different kinds of distillery businesses, some examples include: Micro distillery, Craft distillery, Gin distillery, Vodka distillery, Whiskey distillery, and Tequila distillery.
How Do You Get Funding for Your Distillery Business Plan?
Distillery businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Distillery Business?
Starting a distillery business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Distillery Business Plan - The first step in starting a business is to create a detailed distillery business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your distillery business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your distillery business is in compliance with local laws.
3. Register Your Distillery Business - Once you have chosen a legal structure, the next step is to register your distillery business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your distillery business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Distillery Equipment & Supplies - In order to start your distillery business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your distillery business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful distillery business: