Leaky Roof Brewery/Meadery – Buffalo, MO

The seller’s son and current head brewer was an experienced beer brewer but was ready to take the next step in his career and open his own production facility. With the help of his father (the current business owner) they opened Leaky Roof in 2014. The products were well-received in the marketplace and they expanded distribution throughout Missouri. Unfortunately, the brewer’s mother passed away in early 2019 and running the business without her became difficult for her widowed husband and her son.

The business is still operating, but hours and production varies.

The company manufactures and sells a variety of alcoholic beverages. The featured ingredient is honey which is mixed with water and yeast then fermented make a product commonly known as mead. When other ingredients like cider, fresh berries and/or spices are added, you get products more precisely known as cyser, methyglin, or melomel.

The company recently began brewing and selling beer.

The assets of the business are selling for less than the seller's estimated fair market value of $269,000.

The real estate is available through VR's sister company Professional Real Estate, LLC for $360,000, which is the recent appraised value of the property.

The sale of this business does not include inventory. Any raw ingredients or product in-process can be purchased in a separate agreement with the seller. Any finished alcoholic products must be purchased through the distributor.

Down Payment: $17,500

Total Sales: N/A

Cash Flow: N/A

EBIT: N/A

EBITDA: N/A

Accounts Receivable: N/A

FFE: $269,000

FFE Included: Yes

Inventory: N/A

Inventory Included: No

Year Established: 2014

Days & Hours of Operation: Varies

Lender Pre-Qualified: No

Non-Owner Payroll: N/A

Managers: 1

Real Estate: $360,000

Real Estate Included: No

Monthly Rent: N/A

Square Footage: 6,400

Franchise: No

Relocatable: No

Facilities Information:

The business is operated in a facility that is approximately 6,400 sf. In addition to the production space there is a tap room and office space. The building sits on 1.25 acres m/l that features a very small orchard of various fruit trees.

Reason For Sale:

Retirement

Training & Support:

Two weeks

Potential Growth:

While the distributors in the various territories are marketing the company’s products, the seller feels like they don’t get the attention the other vendors in the distributor’s portfolio get. The seller and brewer feel that they do a better job when they can visit the bars/restaurants/liquor stores themselves, but they didn’t have the time to do the production work and visit each territory with enough frequency. They recommend that a buyer make time for this sales work or hire a sales force to supplement the work of the distributors.

Regarding distributors, the seller feels like some have not been sufficiently aggressive and should be replaced. He suggests that the buyer should take the time to meet and evaluate each distributor and make changes, as necessary.

Ciders and seltzers are a growing segment of the market and the seller feels like there are opportunities to expand the product line into these products or into the others discussed in the next paragraphs.

While currently structured to produce beer, mead and related products, this facility could be used to make other alcoholic products with the addition of some equipment as follows:

• Wine - Mead is made in a similar way to wine and the current setup would work nicely for wine production. Assuming you wanted to package your product in traditional wine bottles, a wine bottling system would need to be purchased and installed.

• Liquor – To make distilled spirits, you would need to add a still to the current space. Depending on how you planned to fire the still (steam, gas, electric) you would need to install that heat source as well.