Erin Distilling Group, Inc | Application Preview
Erin Distilling Group, Inc. is seeking government grants to fund equipment purchases and cover operating expenses for the first 6-8 months. The distilling business faces challenges in its early years, as whiskey and bourbon require aging for 1-2 years before being market-ready. Although production costs are low, revenue from unaged spirits in the first year cannot sustain operating expenses. The requested funding will primarily be allocated for grains, water, barrels, bottles, labeling, and utilities.
The business plan emphasizes growth, indicating that while it costs under $900 to barrel unaged whiskey, the aged product can sell for $5,000 per barrel. The founders plan to forgo personal income for the first two years, allowing all revenue to reinvest in the company and foster local economic relationships in Erin, TN, as well as connect with the global market.
Erin Distilling Group argues for funding approval by highlighting the lucrative potential of aging spirits, citing a 400% return over 48 months on investments made in unaged product. As a veteran-owned small business, they are committed to producing high-quality spirits while supporting the local community.
In terms of competition, their primary rivals are local distilleries M.B. Rolland, Old Glory, and Casey Jones, with Old Glory being the only competitor in Tennessee. Erin Distilling Group's competitive edge lies in its focused start-up strategy, prioritizing operational efficiency over excessive spending on facility aesthetics. While competitors have incurred significant debt through costly property and facilities, Erin Distilling Group aims to keep start-up costs low, putting it in a better position to pay off debts within six years. Their plan incorporates simple manufacturing practices to minimize overhead and reduce risks, underscoring their commitment to sustainable business operations.
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General Information
Business Registration Number: 001349096
Location: Clarksville, TN, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: $250k to $500k
Open to Loans: YES
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Funding Usage
Funding will cover cost of equipment and the first 6-8 months of operating costs. The distilling business is particularly difficult in the first years due to the product needing to age a minimum of 1-2 years before it meets the government's criteria/definition of whiskey/bourbon. Cost of production is relatively cheap in comparison to value of aged product, however revenue in the first year while producing clear unaged spirits cannot cover operating costs. Funding will cover primarily grains, water, barrels, bottles, labeling, utilities.
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Business Plan
The nature of the distilling business is growth. The cost to barrel unaged whiskey/bourbon is under $900 per barrel, but aged product (2-4 years) will bring $5000 per barrel. The two founders have other means of income and plan to take no income from the business for the first two years thus snowballing all revenue into growing the company and solidifying relationships with the local economy in Erin, TN as well as the global market. Barreling spirits is no different in putting money into a savings account. As described above, a $900 barrel of unaged spirit yields 400% return over 48 months. It is no secret that all "brown spirits" sell. We are a veteran owned small business who aim to produce high quality spirits and supporting the local community.
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Self Identified Competition
Our top three competitors are also local distilleries: M.B. Rolland, Old Glory, and Casey Jones. Old Glory is the only one on this side of the Tennessee state line. The other two are in Kentucky. The main difference between Erin Distilling Group, Inc and our competitors is in our start-up planning. Our competitors spent the majority of capital in aesthetics of the physical building as well as rolling too many business plans under one operating cost. For example, our top competitor spent $900,000 on property and then built a $3M facility. Thats $4M of debt before the first barrel is made. Our business plan focuses on pure functionality of facility and equipment. Our land, building, and equipment is only 25% of our top competitor's startup putting us at paying off all startup debts in 6 years. In addition, our top competitors have an onsite retail business and event centers each with their own overhead competing with distilling spirits. A manufacturing plan with a campus that is open to the public carries unnecessary risk and liabilities that we are not willing to accept in the business plan. Simple manufacturing with as little overhead and unnecessary risk as possible. That is how Erin Distilling Group, Inc. prioritizes success.
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Contact Applicant
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