Distillery Financial
Model

What are the core revenue assumptions?

Your revenue is driven by the volume and price of the spirits you produce, starting with five core products: Whiskey, Gin, Vodka, Rum, and Brandy. In the first year (2026), the model projects total production of 11,500 units, generating approximately $382,500 in revenue. This is based on an average initial sale price ranging from $25 for Vodka to $50 for Brandy, with modest price increases planned annually. This excel template for distillery cash flow forecast allows you to easily adjust these drivers.

Primary Revenue Streams

• Whiskey Sales: 2,000 units at $45/unit in Year 1
• Gin Sales: 3,000 units at $30/unit in Year 1
• Vodka Sales: 4,000 units at $25/unit in Year 1
• Rum Sales: 1,500 units at $35/unit in Year 1
• Brandy Sales: 1,000 units at $50/unit in Year 1

What is the path to profitability?

The business is projected to reach its breakeven point in February 2027, just 14 months after launch. While the first year shows a net loss with an EBITDA of -$116,000 due to high startup costs and initial production scale, profitability improves quickly. The model shows EBITDA turning positive in the second year at $124,000 and growing to $1.26 million by the fifth year, demonstrating a clear trajectory toward solid liquor business profitability.

Levers for Improving Profitability

• Increase direct-to-consumer sales via the tasting room
• Optimize raw material sourcing to lower COGS
• Introduce high-margin, limited-edition spirits
• Improve production efficiency to reduce labor costs per bottle

How much startup capital is needed?

To get your distillery off the ground, you'll need significant upfront capital for equipment and facility build-out. The financial model estimates a total initial capital expenditure of $680,000. This covers everything from the main still and fermentation tanks to the tasting room construction and initial barrel inventory. This distillery capital expenditure budget template ensures you account for all major one-time costs before you open your doors.

Major Capital Expenses

• Main Still & Condenser: $250,000
• Fermentation Tanks: $120,000
• Bottling & Labeling Line: $80,000
• Tasting Room Build-out: $75,000

What do the cash flow dynamics look like?

Managing cash is critical, especially in a business with high upfront costs and inventory lead times. This model shows that while you're investing heavily at the start, your cash position stabilizes as sales grow. The forecast dirictly calculates your lowest cash point, projecting a minimum cash balance of $494,000 in December 2027. The detailed monthly cash flow statement is essential for anticipating and managing potential shortfalls.

Strategies to Manage Cash Flow

• Secure a line of credit for working capital needs
• Negotiate favorable payment terms with suppliers
• Manage inventory levels to avoid tying up excess cash
• Offer pre-sales or memberships to generate early revenue

What is the expected return on investment?

The financial projections indicate a long-term investment horizon with modest initial returns, which is typical for the alcohol industry economics. The model calculates an Internal Rate of Return (IRR) of 0.02% and a payback period of 50 months. The Return on Equity (ROE) is 2.08 over the five-year period. This financial valuation model for a small distillery helps you set realistic expectations and communicate the long-term value proposition to potential investors.

Key Return Metrics

• Internal Rate of Return (IRR): 0.02%
• Months to Payback: 50
• Return on Equity (ROE): 2.08
• 5-Year EBITDA: $1,261,000

What is the planned staffing model?

Your team will grow in stages to match production and sales needs. The plan starts in 2026 with a core team of four, including a Head Distiller ($90,000/year) and a Tasting Room Manager ($60,000/year), for a total Year 1 payroll of $232,500. As the business scales, you'll add marketing and administrative support starting in 2027. This phased approach helps manage fixed costs while ensuring you have the right people in place at the right time.

Hiring Timeline

• Year 1 (2026): Head Distiller, Tasting Room Manager, Sales Manager, Production Assistant
• Year 2 (2027): Add Marketing Coordinator and Admin Assistant (part-time)
• Year 3 (2028): Increase Sales, Marketing, and Admin roles to full-time
• Year 4 (2029): Maintain stable team as operations mature

What are the next steps?

Once you've tailored the assumptions in this distillery financial model to your vision, the next step is to translate the forecast into an operational plan. Your primary focus should be on managing your cash runway through the initial 14-month ramp-up period to breakeven. The data is all here; now it's about execution.

Immediate Action Items

• Finance: Use this model to draft a 13-week cash flow forecast by Friday.
• Operations: Validate equipment quotes to confirm the $680,000 CapEx budget.
• Founder: Refine the investor pitch deck using the dashboard and key financial metrics.
• Sales: Develop a channel strategy based on the Year 1 sales targets.

This distillery financial model is 100% editable, giving you complete control to tailor every assumption to your specific business plan. You can adjust production volumes, pricing, and cost structures without starting from scratch. This flexibility is key to creating accurate financial projections for a gin distillery business plan or any spirits venture, saving you dozens of hours.

Adapt revenue streams for your unique product mix

Modify cost drivers to reflect your operational reality

Input your own staffing and salary assumptions

Adjust capital expenditures for your specific equipment needs

Gain a clear, long-term view of your distillery's financial future with a complete five-year forecast. This strategic outlook helps you anticipate funding needs, plan for growth, and make data-driven decisions. The spirits production financial projections allow you to model different scenarios and understand the long-term impact of near-term choices.

Forecast revenue, costs, and profitability

Project cash flow on a monthly and annual basis

Visualize your financial trajectory over 60 months

Plan for future capital investments and hiring

You need to understand your distillery startup costs and ongoing operational expenses to manage cash flow effectively. This template provides a detailed breakdown of all potential costs, from initial equipment purchases to monthly rent and payroll. This clarity helps you build a realistic budget and avoid common financial pitfalls in the alcohol manufacturing industry.

Itemize all capital expenditures (CapEx)

Track variable and fixed operating costs

Calculate Cost of Goods Sold (COGS) per product

Model your complete staffing and payroll plan

How does your plan stack up against the competition? This model helps you perform a craft spirits market analysis by providing a framework to compare your key metrics. You can assess your profitability, cost structure, and growth assumptions against industry standards to build a more credible and defensible financial plan.

Evaluate your gross and net profit margins

Compare your operating expense ratios

Assess the viability of your pricing strategy

Strengthen your business case for investors

Whether you prefer Microsoft Excel or Google Sheets, this template is built to work for you and your team. The model is fully compatible with both platforms, enabling seamless collaboration and access from any device. This flexibility ensures your team can work together on your craft brewery and distillery financial planning software without friction.

Use with Excel on Windows or Mac

Collaborate in real-time with Google Sheets

Share easily with advisors, partners, and investors

Access your financials from anywhere, anytime

Get an instant overview of your distillery's financial health with a dynamic, easy-to-read dashboard. It visualizes key performance indicators (KPIs), charts revenue growth, and summarizes profitability metrics. This high-level view is perfect for tracking progress and presenting your financial story to stakeholders in a clear, compelling way.

Visualize revenue growth and profit margins

Track cash flow trends and key metrics

Monitor performance against your targets

Simplify complex data for quick insights

Your financial plan needs to be professional and credible to secure funding. This template is structured and formatted to meet the rigorous expectations of investors, banks, and stakeholders. It presents your distillery funding strategy with clear, well-organized financial statements, assumption tables, and charts that build confidence and support your ask.

Professionally designed financial statements

Clear documentation of all key assumptions

Polished charts and graphs for presentations

Covers all metrics investors expect to see