Leech Lake Brewing for Sale

Discussion in 'Midwest' started by incutrav, Jan 23, 2013.

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  1. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    Anyone want to pool some money and move up north? 'Only' $500k.

    I visited the brewery last summer, very tiny. Would really benefit from a bigger taproom, as it was jammed when i was in there with probably twenty people.

    They had some quality issues with the bottles it seemed though. Wonder why he is selling, as at the least , his beer is in many liquor stores. Competition is more then ever however.

  2. Chaz

    Chaz Poo-Bah (1,934) Feb 3, 2002 Minnesota
    Premium Member Beer Trader

    A curious (and sorta strange) development, but seeing as how there was another recent ownership change in the area of Minnesota Craft Breweries, it's not unprecedented.

    Now, if only I had a little extra money to spare... :sunglasses:
  3. StarRanger

    StarRanger Initiate (167) Nov 27, 2006 North Dakota

    Chaz likes this.
  4. copslovebeer

    copslovebeer Initiate (0) Mar 26, 2012 Minnesota
    Beer Trader

    Seventeen Dollars. How's that?
  5. mnbearsfan

    mnbearsfan Aspirant (249) Dec 25, 2009 Minnesota
    Beer Trader

    Where was that ownership change?

    I bid a pair of Choppers
    dj420, copslovebeer and sacrelicio like this.
  6. sacrelicio

    sacrelicio Initiate (0) Feb 15, 2005 Minnesota

    There is no room for quality control issues in today's market.
    GeezLynn and maximum12 like this.
  7. Chaz

    Chaz Poo-Bah (1,934) Feb 3, 2002 Minnesota
    Premium Member Beer Trader

    Flat Earth, a short while ago.
  8. mnbearsfan

    mnbearsfan Aspirant (249) Dec 25, 2009 Minnesota
    Beer Trader

    Oh yea, the Warner's Stellian guy bought it. Right?

    Are they doing anything different? I forgot about them. They should can their beer ~ something new, may be that would jumpstart them a bit for the summer. Love me some lake beer.
  9. mjryan

    mjryan Zealot (581) Dec 22, 2007 Minnesota

    500k gets you one hell of a lot of Fuggles.
  10. ZAP

    ZAP Poo-Bah (3,579) Dec 1, 2001 Minnesota

    Exactly. I wouldn't even know if that is a fair price or not to get started. I'd probably change the name and start anew with a kickass brewer who would use not only fuggles but some of these other fandangled hops I've heard about :slight_smile: if I had the cash but again I have no idea if you could make money on that investment or not.

    Walker has some $$ but overall the northern MN area does not have a lot of disposable income and also a lot more BMC drinkers than anything....it is slowly changing but I think these smaller upstarts like Bemidji and Jackpine might have the safer business model.....then again I truly know nothing on the business side so take this all with a grain of salt...
    Chaz likes this.
  11. Atom13

    Atom13 Initiate (176) Jun 29, 2010 Minnesota
    Beer Trader

    Quality issues forsure, lots of infected bottles. That issue aside, their beer was not that good anyway. Many stores in the Minneapolis area stopped carrying them.
  12. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    I do see the bottles around many shops, but I suspect they are quite old. The growler of the Scotch Ale I had tasted slightly sour, and that was fresh.

    Store shelves are jammed these days with beer, and good beer. I said it in another thread that there is zero time to misstep in this market. Way to many choices out there to spend your hard earned beer dollars on a possibly subpar product.

    Whomever buys its may be better off trying to strickly serve the 'up north' crowd.
  13. olympuszymurgus

    olympuszymurgus Zealot (582) Nov 24, 2009 California
    Beer Trader

    500k for a tiny taproom and a 1 bbl system? Yeah...about that...
    nogophers and Penguin3200 like this.
  14. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    I thought the same thing, seems pretty high. A steel pole building such as that doesnt have a lot of value, even with the proper floor. A 1BBL Brewhouse doesnt account for a huge amount either. I dont know the going price offhand, but for reference when Muskie Capital sold their 15BBL system, they were asking $95k.
  15. jera1350

    jera1350 Poo-Bah (2,130) Dec 15, 2007 Minnesota

    Giving up the brewing business to introduce the latest and greatest ab workout product seems like quite the change of pace.
  16. Ungertaker

    Ungertaker Disciple (341) Apr 30, 2010 Minnesota
    Beer Trader

    A buddy of mine went to their industry party they held on Sunday. He said they are moving forward with the purchase of the Hamm's site on the East Side of Saint Paul. I asked him if they mentioned any plans to can; he said they are planning to do 16oz four packs. He also said that they have ordered some new equipment and hope to have the new brewery ready by September. I am going to ask some people I know who work for the city to substantiate his claims. It would be nice to see a brewery back at that site!
    djschnabel and minnesotaryan like this.
  17. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    I have some friends on the STP city council. Sounds like they will be occupying some of the space at Hamms going forward. A bunch of new tanks arrived at their current location the other day. Curious if they will be putting them online there, or just storing them until the move takes places.

    Cans are a good move, I might buy the Black Helicopter if it was priced right. The rest are 'meh', as they say.
    Ungertaker likes this.
  18. olympuszymurgus

    olympuszymurgus Zealot (582) Nov 24, 2009 California
    Beer Trader

    I know folks(3 in fact) that have 1 bbl systems that cost less than 10 grand to build. Add fermenters and kegs and you double that. 20k=/=500k. The only way I see 500k is if somebody really values the Leech Lake brand and think its worth the money and the building/brewery is just a bonus.
  19. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    My real estate cohorts tell me generally when a reasturant or bar goes on the market, the asking price is equal to a year revenue. This doesnt always happen, but that is the general rule of thumb. I cant imagine Leech Lake sells $500k worth of beer annually, not on a 1 BBL system.

    I dont believe the Leech Lake name holds a ton of value, likely be better off starting over with a new brand/image. But what in the F do I know?!
  20. dj420

    dj420 Initiate (13) Aug 9, 2007 Minnesota

    I had a couple of their beers last year...NASTY.
  21. olympuszymurgus

    olympuszymurgus Zealot (582) Nov 24, 2009 California
    Beer Trader

    500k a year... 1bbl, triple batches, take two weeks off for vacations, equals 2106 half barrels of beer. Assume 10% loss, 1900 kegs. Sell them all for 160 per and make...304 thousand. Still absurdly short of a reasonable amount of income with an unreasonable timetable. Blah.

    I hope he makes his money, and I hope the buyer is happy with it.
  22. sacrelicio

    sacrelicio Initiate (0) Feb 15, 2005 Minnesota

    The lot is 7 acres though...how much value does that have?
  23. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    With water/sewer/utilities there, maybe $4k tops an acre for a town like that? If i had the time, im sure you can pull the property taxes and market value for the site on the county website.
  24. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    Ah, it only took me like one min:confused:. Prop tax lists 5 acres(my guess is agent didnt actualy have the land surveyed), land value of $28.5k . Building value of $86.4K, total of $114.9K .

    Both land and building value seem very high, especially considering the market. Im certatin they are banking on the craft beer 'boom' to help inflate the value
  25. maximum12

    maximum12 Poo-Bah (3,694) Jan 21, 2008 Minnesota
    Beer Trader

    From my experience looking at businesses & working with business brokers, depending on the type of business, they owners will try to sell for multiples of 'profit', not revenue, since revenue means nothing if there's no profit. Big huge generalization coming, but a 'fair' price is often 2-3x annual profits.

    Of course, if you don't have profits, or if you think you have a unique business, or a Pro Sports Team is going to build on your plot of land, or a million other things, rational valuation goes right out the window. Seems like that's what's going on here.
  26. incutrav

    incutrav Initiate (0) Jan 16, 2007 Minnesota

    Im sure this is floating around on the web somewhere...how many BBL did they do in 2012?
  27. morimech

    morimech Poo-Bah (3,063) Nov 6, 2006 Minnesota

    The 1bbl brewhouse is a tough sell for that price.
  28. magnum2156

    magnum2156 Initiate (0) Apr 1, 2014

    I am an avid Homebrewer & Leech Lake Lover----I will be fishing on leech lake 3rd week of june. I am from Illinois.
    I would love to invest and team up with a group of brewers to make this transition a succes. I am open to discussion. I am married and have family here in Illinois---but i have a dream to do something that i love to do---brewing hand crafted, Quality Beer.

    You need to have Marketing as well, T-shirts,hats,gear,...............All promotional.
    #28 magnum2156, Apr 1, 2014
    Last edited by a moderator: Apr 1, 2014
  29. HoudiniRN

    HoudiniRN Aspirant (258) Feb 28, 2014 Minnesota
    Beer Trader

    Visited a while back... 3 Sheets was the only one I would seek out... Also experienced a couple infected bottles...

    On the other hand at last years craptastic "TC Beerfest" They were pouring beers to the bitter end while other shops such as Indeed packed up early, taking their beer with them. I do have some respect for that.
  30. TboneRN

    TboneRN Defender (602) Mar 30, 2014 Minnesota
    Beer Trader

    I agree with Houdini, 3 sheets was a fantastic beer, and it was nice to visit the brewery when up north.
    I too attended Beerfest last summer and I also remember Leech Lake brewery serving until the end when indeed packed up and left early.
  31. lurpy1

    lurpy1 Zealot (570) Jan 15, 2010 Minnesota
    Beer Trader

    I hope it keeps going. Not remarkable beer, but I never had a quality problem with growlers. Also wish it could move to a place with a more appealing tap room. Right now it's basically a growler filling station and not much else.
  32. MNPikey

    MNPikey Devotee (415) Feb 27, 2011 Minnesota
    Beer Trader

    Our IPA is infested? Ok, its a "Pineapple Ale"....
    KV12482, lurpy1 and HoudiniRN like this.
  33. 4four4

    4four4 Initiate (0) Apr 27, 2007 Minnesota

    What? You are saying a good value? lol
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