Fully describe the business's activities?
Brewing and filling of bottles and casks of craft beer for resale by restaurants, pubs and at promotional events.
How long has the business been established?
The business was established in 2012 but a limited liability company was registered in 2014
How long has the owner had the business?
The owners are the founders of the business
What steps are in place to solve 'load shedding' problems?
Minimal disruption due to location
What is the average KW usage?
How does the business operate on a daily basis?
The business has been mothballed for the past 12 months however prior to Covid brewing and fermentation and filling was conducted on a continuous basis, five days a week.
How are the clients attracted to the business?
Pubs and restaurants are attracted to the business through direct selling. The brands are marketed to consumers through the website and promotional activity
What Advertising/Marketing is carried out?
Website and promotional activity to consumers. Website and direct selling to pubs and restaurants
Does the business have any contract work?
Yes it has had contract work. Client details will be supplied on request to a serious buyer
What competition exists?
The craft beer market is competitive however it is a segment that continues to show significant growth
What are the seasonal trends?
Minimal seasonal trends are evident in the premium craft beer market
How did the Covid-19 pandemic impact the business turnover / daily operations?
Covid restrictions created a significant disruption to the craft beer market
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The brewing facilities have been maintained in full working order to enable a rapid response should market conditions change
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation will be made available to an approved buyer
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Full financial information is available for the past 6 years
What percentage of the business is cash/credit?
100% is payable in 7 days
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Increased distribution reach and increased promotional activity
Is Seller finance available and for what amount?
What is the total staff complement?
When operating, the staff complement consisted of two owners and 5 employees
Give a breakdown of staff/ functions/ length of service?
1 brew master 1 assistant brew master 3 sales reps in addition to the two owners
Do any receive special perks or incentives?
All employees were properly retrenched in terms of legislation
Are they on contract?
Do any have management potential?
The brew master is available to resume or on a consultancy basis
How involved is the Owner in running the business?
Degree of involvement is dependent on the owners business plan
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
Current lease is on a month to month basis as agreed with the premises owner
Is there an option of renewal & what period?
Renewable to be negotiated with the premises owner. However the Gauteng Liquor Board license is linked to the premises
What is the annual escalation %?
Historically 8% per annum
What are the trading hours?
What is the square meters of the business?
300 square meters
Is a copy of the lease available?
Yes, on request
Do you require a licence?
The liquor production license needs to be renewed. Constraints as per Liquor Board regulations.
What lease deposit and/or other surety is required?
To be negotiated
What are the main assets of the business?
The main assets of the business are brewing equipment
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Owners cost based valuation, mechanical components depreciated, tanks listed at cost.
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Production processes are expandable to meet demand and facilities are purpose built Premium quality equipment Up to 10 distinct recipes with proven appeal and established brand names Located in a 'clean', non-manufacturing environment in close proximity to markets Company information is accessible on the cloud via secure link
Production-orientation lead to a previous lack of emphasis on sales
Market penetration through motivated sales force Asset base offered at a significant discount Relaxation of Covid restrictions will result in a rising market Production flexibility allows penetration of premium-priced niche markets
Economic recovery dependent on Covid
What is the reason for the sale?
Owners lacked marketing orientation
Why is this a good business?
A complete one-stop brewing facility, excellent quality brewing infrastructure with unrealised market potential
What is the price plus stock and the profit?
Annual Turnover Amount between R 500 thousand and R 6 million