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Annual turnover

  • Mandate: 34564
  • Added: 25 Mar 2021
  • AFS
  • 411

Artisanal brewery

Gauteng, Johannesburg
Mandate 34564
Added 25 Mar 2021
R 2,500,000* ZAR
Stock: R 0
Assets: R 0
R -27,192 ZAR
Malcolm Keevy
Aldes Elite
Gauteng, Sandton
Gauteng, Sandton

Fully equipped artisanal brewery established since 2012 for sale

Artisanal brewery
R 2,500,000* ZAR
Stock: R0
Assets: R0
R -27,192 ZAR

Fully equipped artisanal brewery established since 2012 for sale

To gain access to more business info
please supply us with your details below

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?
Not applicable

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?
Not applcable

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?
Not applcable

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?
Not applicable

Will Seller settle or Buyer to take over?
Not applicable

Are copies of agreements available?
Not applicable

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?

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