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Seattle Washington Area Non-Alcoholic Beverage Distribution Business

King County, WA
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Asking Price:$1,695,000
Gross Revenue:$3,950,000
Rent:$11,000/Month
Established Year:1991
Cash Flow:$482,000
Inventory:$275,000
FF&E:$227,000
Listing ID: 2302725Listing provided by BizBuySell
BUSINESS DESCRIPTION

Retiring Owner selling stable business

The Company is primarily a distribution company that distributes multiple lines of national, local and crafted soda and juice concentrates. The company markets it’s own soda brand (owned by a related company included in this transaction). It uses co-packers to produce products in fountain syrups and cans. The company is based in the Seattle, Washington area. The company services over 500 accounts across their metro region, with ample opportunities to aquire new customers.
All customers are serviced under signed contracts of a year or more. Nearly all customers use the company's dispensing equipment, so switching to a different vendor is cost prohibitive and undesireable. A full Confidential Descriptive Report is available upon receipt of a signed NDA.

The Company distributes its products to food service establishments throughout Western Washington. Its customer base includes restaurants, bars, music venues, retirement homes, nursing homes and hotels. The Company enjoys proprietary rights to distribute many of its products in a geographic territory, and complete exclusivity with regards to own brands. Approximately 95% of revenue is generated through the distribution and sale of soda and juice concentrates. The remaining revenue is generated through equipment leases and sales for dispensing equipment on customer premises.

The company is not tied to any single vendor, having mulitple sources of supply for their products. The company has unique formulations that both provide a healthier alternative to competitor offerings and exempt most of the lines from the city's high beverage tax.

Please return the attached nda to gmorrison@chapman-usa.com to recieve more information

ATTACHED DOCUMENTS
2410 IOL + Seller Profile.docx.docx Download
GJM Buyer Confidentiality Agreement.pdf.pdf Download
DETAILED INFORMATION
Location
King County, WA
Inventory
Included in asking price
Real Estate
Leased
Building SF
10,000
Lease Expiration
31/12/2025
Employees
9
Furnitures, Fixture & Equipment(FF&E)
Included in Asking Price
Facilities
The company operates out of a 10,000sqf warehouse & office space. The space is leased from the owners (and not included in the sale). The lease is at market rates, and is not required to be renewed. The company has 4 delivery trucks and 2 service trucks. Miscellaneous equipment and tools for customer installation and service. The company has approximately $3million (cost) in equipment installed at customer locations - expensed instead of capitalized. This installed base of equipment makes customer retention very high.
Competition
The company occupies a unique niche in its market. It is the sole distributor in the area for the brands it distributes and the sole distributor for products under its own brands. The only competion from other brands comes from national broadline distributors who cannot match the service and pricing offered by the company. The company also enjoys a significant beverage tax exemption, not available to its competition, due to its natural formulations and local domicile Inventory turnover is very quick.
Growth & Expansion
Opportunities include: Product diversification - adding new lines of beverages or adding complimentary product categories Geographic expansion within the state or nearby Metros (Vancouver or Portland) Shifts in consumer preferences toward natural sweeteners, Additional marketing investment, Increased operating margins, Build out of the Seattle Soda brand.
Financing
The owner is asking for a cash offer.
Support & Training
They are willing to assist during the transition period for a reasonable period of time. The business is not complex, the products are easily understood and the business model has provided a great deal of revenue/cash flow stability over the years.
Reason for Selling
The buisiness is for sale because the owners are looking to retire.
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Graham Morrison
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Graham Morrison
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