Established Sonoma Wine Producer
Sonoma County, CA
An ideal opportunity to purchase a turn-key wine company in the beautiful Sonoma Valley. We are a wine producer(Company) that was established in 2004 and have produced critically acclaimed wines(Wine Advocate, Wine Spectator, Sunset, Wine Enthusiast, International Wine Review)over the past 18 years. Our production ranges from 2,500-4,000 cases annually, and features super premium mountain Cabernet Sauvignon, Russian River Valley Pinot Noir, Sonoma Old Vine Zinfandel, and others. The wines are produced by the owner/winemaker who has 25 years experience in wine production. We occupy an exciting and beautiful hospitality area that is leased from the facility where we craft our wines. While the Company does not own real estate, it has established extremely favorable lease terms for its production and the use of the hospitality facility, well below the current market price currently experienced in nearby Napa Valley. Over the years the Company has developed a growing Wine Club that now includes approximately 300 active "Friends". At present time, the Company's sales break down to 35%/65% Dtc/Distribution, respectively, by volume. Unlike many smaller operations, the Company has established distribution relationships in many states and Canada, including CA, TX, FL, MN. Revenue for 2021 is $500,000. Current inventory, which is 90%+ current, is $629,000. Casegoods, 2,200 cases, is valued at FOB, 50% retail. Bulk inventory, 5,000 gallons, is valued at COG's. Current profitability and cash flow is flat. Recasting the P/L and CF, eliminating the debt service, eliminating redundancies, and incorporating efficiencies of buyer's current operation will generate excellent profitability and cash flow. The opportunities are numerous, and can be realized through differing scenarios. - The Brand/Company can be absorbed into a current wine company with its own facility and administration. Many of the current costs would be eliminated due to redundancy. - Company can be moved to another geographical area, while maintaining its presence in Sonoma. This would enable a Buyer to operate in an additional area to enhance its sales and reach. This can take the form of continued sourcing and processing in Sonoma, bottling and shipping to a desired satellite location, all the while still maintaining the tasting room in Sonoma. Buyer could then have two locations for DtC. Or, sourcing can continue in Sonoma and other locations with grapes transferred to Buyer's own facility for processing in the Buyer's location choice. Or, any variation of the above. - The Buyer can assume the Company and continue operations as they now exist. In each of the scenarios the current Majority Owner/Managing Member/Winemaker is willing to assist in the transition as an employee, and would consider long term employment if the environment is conducive to a favorable relationship. This includes travel to assist in another geographical location. Possibly available is the transfer of SBA Loan of $420,000 @ 3.25 %. This would mostly offset the amount of cash required for the sale.
$685,000
