EJ078 - Long Established and Growing Independent Niche Spirits Drinks Business

Business Profile: The company was established before 1969 and has over 50 years of experience in blending, distillation, bottling and marketing of fine spirits including Scotch whiskies, premium gins, luxury vodka and rum. Many have won multiple awards and receive excellent reviews. The business has a distinctive way of marketing products and distributes in over 30 countries with a tremendous track record in sales and has grown year on year. The principal markets are spirits gifting, travel retail but there are also significant sales through supermarkets and traditional liquor outlets where customers might be looking for something different. There is also a private label service which trades on the company?s design expertise and supply chain. Clients: The business has a large and loyal client base around the world and a large percentage of sales are from repeat business with long standing distributors worldwide. The approximate sales turnover split is 80% international markets and 20% UK. There is a wide range of customers and no one customer exceeds more than 12% of total sales. Technology: All IT and software is in place to monitor the business, finances, customers and product management. The business has detailed financial software which tracks all sales, gross and net margins and provides a very detailed level of management information to monitor and inform commercial decision making. A full inventory of equipment is available to all genuinely interested parties. Key Strengths: Great reputation 50 years of experience A subsidiary company registration in Europe facilitating trade with the European Community Well established long-standing supply chains for Scotch Whiskies, gins, vodka, rum and packaging Loyal, trained, qualified and experienced staff and management Key Partnerships with leading suppliers Multiple Markets with key local distributors Niche Products with tooling for unique bottles and designs Bottling Capability (with all necessary HACCP and Health and Safety management) HMRC Bonded Warehouse Trade Marks in multiple countries Growth and Expansion: The business is poised for significant further growth both in the UK and worldwide. With the addition of a sales director and further investment in additional worldwide markets sales revenues could be increased relatively easily. Advertising: A large proportion of the sales revenue has been from repeat business. The company has a website and social media presence but has not invested significantly in online marketing. The business has had a continual presence with trade shows and exhibitions. Employees: The business is supported by seven staff including: Managing Director Finance Director Operations Manager Administration Assistant Production Supervisor Two Lead Operatives Agency Staff as required during peak production periods Brand and Intellectual Property Assets The business owns all product designs and patterns for their unique bottles as well as domain names, web sites and email addresses relating to: The business name Key brand vehicle Vodka product Whisky product Gin products The company owns 12 unique and established brands across whisky, gin, rum and vodka and the business has International Trademarks in China European Community Japan Malaysia (pending) UK USA Regulation and Compliance: The business holds the following registrations and certifications. Drinkaware registration HACCP production control HMRC Alcohol Wholesaler Registration Scheme (AWRS) HMRC Bonded Warehouse registration HMRC Duty Stamps registration HMRC Movement Guarantee HMRC Spirits Drinks Verification Scheme HMRC Warehouse Keeper registration Scotch Whisky Association Membership USA COLA compliance registration USA FDA compliance registration USA NABCA registration USA TABC compliance registration USA TTB compliance registration Premises: The business operates from leased industrial premises in South East England with efficient transit routes for domestic and export sales. There is significant storage and production space in the current premises sufficient to treble current turnover. The business could be relocated either in the UK or abroad. Full lease details available on request. Assets and Plant: The business owns tooling for unique bottle designs, plastic packaging and carton tooling, labels designs and cutters. Forklift and associated handling equipment. A full list of assets and vehicles both owned and leased is available on request. Financial Information: The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The business has achieved a history of excellent turnover and profits consistently over 50 years. Gross Profit Margins for the last financial year were 32.5%. Turnover and net profits are on an upwards trend and turnover for 2023 is forecasted at ?1.8m. Average last 3 years Annual Turnover 2022 ?1,523,603 Average last 3 years Annual Gross Profit ?482,910 Annual Turnover to 31st December 2022 ?1,702,235 Annual Gross Profit to 31st December 2022 ?553,363 EBITDA to 31st December 2022 ?164,510 The Asking Price of ?500,000 is for 100% of the issued capital of the company. The buyer would assume the current debt and cash position of the company. Reason for Sale: This is a retirement sale. Support and Training: The existing director and shareholder will provide full support and training to any purchaser for an agreed handover period.

For more information on EJ078 - Long Established and Growing Independent Niche Spirits Drinks Business talk to Turner Butler Limited (Business Broker)