Corporate ate CPA type Tom Retir ired ed law aw enforcem - - PowerPoint PPT Presentation

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Corporate ate CPA type Tom Retir ired ed law aw enforcem - - PowerPoint PPT Presentation

Jan 13, 2023 242 likes •393 views

Chris is Corporate ate CPA type Tom Retir ired ed law aw enforcem cement nt Feeding the beast: Does your business model work? About our Business What do you mean by Business Model? Hudson Valley Distillers, by the numbers

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Tom Retir ired ed law aw enforcem cement nt Chris is Corporate ate CPA type

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Feeding the beast:

Does your business model work?

  • About our Business
  • What do you mean by Business Model?
  • Hudson Valley Distillers, by the numbers
  • Lessons Learned
  • Summary
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Feeding the beast:

About our Business

  • Farm Distillery 100 miles North of New York City
  • Family owned and operated
  • Destination distillery
  • Mostly apple based spirits
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What do you mean by Business Model?

$19.99 ~90,000,000 bottles per year $75M PPE $43.50 ~9,000 bottles per year <$1M PPE Volume Margin More fixed costs Larger infrastructure (The Beast)

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The Difference between a model and a Plan

Field Marshall Helmuth Carl Bernard Graf von Moltke, Chief of Staff of the Prussian General Staff from 1857 to 1871

“No plan of operations extends with any certainty beyond the first contact with the main hostile force”

Tom & Chris, two poor guys that started a distillery

“Your business plan can change, but you’ve probably got once chance to get your business model right”

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Hudson Valley Distillers by the numbers

  • July 2013:

Purchased Farm & began restoration

  • February 2014:

Completed Fed and State permitting

  • April 2014:

Open to the public

  • July 2014:

Production process online, began selling to liquor stores and restaurants

  • January 2014:

Opened the “Cocktail Grove”

Jul Aug Sep Oct Nov Dec Jan Feb Mar

Profit/Loss by month Revenue Expense Net Income

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Hudson Valley Distillers by the numbers

  • 2.00

4.00 6.00 8.00 10.00 12.00 14.00 16.00 375ml Vodka 750ml Vodka 375ml Applejack 750ml Applejack

Direct Cost Elements by Product and size Bottle, Label/Screen print, stopper Cider Taxes Distilled Water

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Feeding the beast:

Hudson Valley Distillers by the numbers

Our business is roughly 2/3 retail and 1/3 wholesale

$10,000 gross profit requires 576 bottles $10,000 gross profit requires 330 bottles $10,000 gross profit requires 72 bottles

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Feeding the beast:

Hudson Valley Distillers by the numbers

$- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Distillery Cocktail Grove

Average transaction size

50% 40% 10%

SALES BY PRODUCT LINE

Bottle Sales Cocktails, Food Merchandise

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Summary ry

  • Don’t assume anyone else’s Business Model should be yours
  • Selling direct to the public requires less equipment and yields higher

margins

  • More and larger equipment breeds complexity
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Miscellaneous Lessons Learned

  • Choose vendors carefully
  • Artisan Still Design
  • Laser-On
  • Don’t forget merchandise
  • Working capital will be more than you think, i.e. bottles, labels,

barrels,

  • All that being said, don’t go too small
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Contact info

  • 1727 Route 9 Clermont, NY 12526
  • info@hudsonvallydistillers.com
  • www.hudsonvallydistillers.com
  • www.facebook.com/HVDistillers