Dented Brick aims for acquisition with funding drive

8th January, 2020 by Owen Bellwood

Utah-based Dented Brick Distillery has launched a US$1 million crowdfunding campaign as it strives to grow its business in order to attract acquisition offers.

Dented Brick Distillery hopes to increase its sales by 40 to 60,000 cases annually

Since its inception in 2011, Dented Brick has been producing a range of rums, vodka, gin and whiskey at its distillery in Salt Lake City, Utah.

The distillery is now striving to increase its sales from 14,000 cases, which it sold in 2019, to 23,000 in case sales in 2021 and 39,000 in 2022. Dented Brick then hopes to be acquired by a larger distillery, which it says has happened to similar companies “when case sales reach 40 to 60,000 cases”.

In order to reach its target, Dented Brick has launched a crowdfunding campaign through Wefunder with the hopes of raising as much as US$1,070,000.

The American distiller will use the funding to purchase a chiller to speed up its whiskey production, finish installing its grain mill and plans to purchase a lauter tun for whiskey mashing.

It will also allow the distillery to add two additional sales professionals to expand our territory. Any remaining funds will be used as working capital.

If the minimum US$50,000 is raised through the campaign, Dented Brick will use the cash to support working capital “in an effort to start our own in-house credit line”.

Through 2017 and 2018, Dented Brick experienced 160% growth and sold 8,052 cases in 2018. The distiller was then projected to sell 11,000 cases through 2019 but exceeded these estimates after selling 14,188 cases through September 2019.

The distiller said it currently ships its products to 10 states through 13 distributors. Over the next five years it plans to increase its sales to 50,000 cases, which it says “is an increase of only a small percentage per year, much lower than actual 2019 growth rates”.

According to the distiller: “At the 50,000-plus case volume, we will be entertaining acquisition offers and planning our exit.”

One Response to “Dented Brick aims for acquisition with funding drive”

  1. Western Spirits Guide says:

    One look at that crowdfunding page and the risks associated with this distillery are enough to keep many fists tight. A debt ratio of 99% and a -192% net margin? I would be very curious as to how current members view their investment and which potential investors would be willing to shoulder the burden until an exit opportunity presented itself.

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