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Case Study: A Craft Brewery Discovers the Value of a Newly Purchased Brewhouse

Tom Burton- March 02, 2013

Liquidity Services has the industry’s broadest range of its services and vertical industry coverage for the reverse supply chain, helping over 130 Fortune 1000 clients and 5,500 government agencies achieve improved recovery value, increased sustainability, and greater compliance. We are excited to share with you the success stories of our clients as they achieve results for their organizations and will frequently feature these exciting stories through this blog. Today, we are talking about beer, and to be more specific, craft beer.

Overall, growth in the beer industry looks as if it has leveled off, but the craft beer segment is fast-growing. Craft beers make up 6% of all beer sales but are steadily growing by 13% annually, based on 2011 numbers. There is certainly a bright future for the craft beers industry; however, it can be a challenge to determine the value of craft brewer equipment. When a brewhouse was purchased by a craft beer brewer, the new owner needed to better measure and understand the value of this asset.

Solution

The leading craft brewer engaged our Appraisal & Valuations team to assess the value of the recently acquired brewhouse. Our team of experts employed extensive research techniques — engaging used equipment dealers and domestic buyers from its large database of contacts — to provide a comprehensive view of the buyer market for a brewhouse and the asset’s value.

Results

Thanks to the Liquidity Services valuation, the new owner of the brewhouse was given a better understanding and measurement of the asset’s actual market value. The brewhouse had been shipped to the U.S. from Germany and the owner was able to discover from Liquidity Services that its new location in California had actually increased its value. The replacement of such a facility with its malt handling equipment, brewhouse equipment, filtration system, bottle filling line, and keg filling line, would have actually been cost-extensive to purchase new. The Appraisal & Valuations team was able to determine the values on this equipment are trending upward and for that reason, ranked it as ‘High’. With the information provided by the valuation, the brewhouse has become a valued piece of the craft brewer’s business.

 

Read the case study for more information on this case study or to contact our sales team.

Tom Burton, Executive Vice President and President, Capital Assets Group

Thomas B. Burton serves as Executive Vice President, Federal Sector for Liquidity Services. In this role, Tom manages the Company’s account relationship with the Department of Defense (DoD). He also provides leadership for selected new business opportunities in the Federal sector. Tom has been a member of Liquidity Services’ senior management team since 2001 dating to the inception of the Company’s DoD relationship. Tom holds a B.S. from Cameron University and is a member of the National Auctioneers Association and the Certified Appraisers Guild of America.