Page 113 - Bord Bia

ROADMAP

STAGE 1

f) Business Model
Continued

(ii) BUY

The greatest advantage to buying your liquid from an existing brewery or distillery is that you
can start to develop your brand and business very quickly.

You should be aware however, that it can be diicult in the craft beer category to make
sustainable proit when you have someone contract brew, so a medium-term plan can be to
build your own brewery as quickly as possible once your brand is more established. This will
ultimately create more margin and eiciencies in your operation.

In the distilling category, it is possible to sustain a proitable business on a contract distilling
basis, albeit at a lower margin compared to distilling the liquid yourself. The advantage of this
approach that it enables you to get to market immediately without the overhead of a distillery. In
a highly competitive market based on brand heritage & stories, this decision should not be taken
lightly. In many cases, the brand’s provenance and heritage may be based on it’s own distillery
and origins. Contract distilling will undermine this position while you’re efectively outsourcing
the production of the liquid. You’ll need to consult with experts and associations in the industry
as outlined to get a grounded view of what option will work best for you.

You should also be aware that grant aid from Enterprise Ireland will be reduced accordingly if
you don’t intend to build a distillery or brewery in your operation.

113