Distillery Economics: Proof Gallons, Angel's Share, Cask Inventory & Ageing Cash Flow
Run a craft distillery by the numbers: ABV, proof and LPA, mash-to-spirit yield, compounding angel's share, cask inventory at cost, gin vs whisky cash cycles, illustrative excise per LPA, bottle cost to shelf price and funding the ageing gap – 8 graded labs on a fictional distillery (please drink responsibly).
The first lesson is free — no account needed.
About this course
A distillery economics course that runs one fictional craft distillery, Hollow Pine Distilling Co., in a spreadsheet, for distillers and founders, cask investors, drinks industry staff and business students. You convert spirit stock into proof, litres of pure alcohol and proof gallons, follow six mashes from malt to spirit with the yield per tonne and the malt cost per LPA, compound the angel's share year by year and find when 20% is gone, value a cask register at cost with warehousing, compare the cash conversion cycle of gin and five-year whisky, calculate illustrative excise duty per LPA and per bottle, build the cost of a 70 cl bottle and follow its price to the shelf, and plan the peak funding need before the first whisky is sold, with cask pre-sales. Illustrative figures, excise and tax rules vary by country, with no brand affiliation. Please drink responsibly. The first lab is free.
Lessons
- ABV, Proof and Litres of Pure Alcohol (LPA)Free
- From Mash to Spirit: Wash ABV, Efficiency and Yield per Tonne Pro
- The Angel's Share: Compounding Evaporation over the Years Pro
- Cask Inventory Valuation: Cost per LPA including Warehousing Pro
- White Spirits vs Aged Whisky: the Cash Conversion Cycle Pro
- Excise Duty per LPA (Illustrative) Pro
- Bottle Cost Build-up and Pricing down the Chain Pro
- Funding the Ageing Gap: Peak Cash Need and Cask Pre-sales Pro