Cider Mill Business
An alcoholic beverage derived from the fermentation of apples is cider. Popular in most countries the United Kingdom has one of the largest production companies.
However the legal content of absolute alcohol is determined by each country. Although the juice of different types of apples are used cider apple is the preferred choice.
Cider Apple Content and appearance
Appearance ranges from clear, amber, brown, sparkling, or colorless depending on the verity. Clarity depends on fermentation, removal of sedimentation and filtration.
Traditional brands are darker premium with strong apple taste with darker color. Flavors also differ from sweet to dry, sour taste. Cider apple content includes 35% – 90% apple juice, 1.2-12% alcohol, 20.5g sugar.
Steps to start a cider mill business
Step one is to plan the business, secure startup funds, determine target market and breakeven. The cost depends on the equipment small or large scale production. Cost range from homemade cider 4100 – line production $100,000. Expenses include raw materials, staff wages, and equipment maintenance, insurance.
Cider Mill Business Plan
A cider mill business plan needs an executive summary, objective and mission statement. Key to success is marketing, quality control, effective management of resources. Add a company summary, company ownership information and company location/facility.
The executive summary covers product lines, company location, target markets demography. Objective is to sell 10,000 units of wine annually at retail value of $70,000.
Establishing the Winery
Things needed to establish a cider winery are good location, product souring. To establish in a location easy to reach with good road network.
This will facilitate easy access to raw materials or shipment of finished product, competitive comparison. Others are type of milling equipment, labor, product and services. More include target market segmentation, marketing analysis.
ABC Cider Mills Business Plan-PDF
There are two ways to source the cider apples for the winery. The first is to own an orchard or purchase directly from orchard farmers. Owning an orchard is very beneficial and increases profit.
Typical Day in a Cider Mill business
A typical day in a cider mill business is loading of raw materials, processing and transforming apples into cider. Others include equipment maintenance, marketing, shipping, customer service.
Hire experienced winery millers, loaders, factory manager, and receptionists. The owner needs to have entrepreneurial skills,
Secure a business name and register a limited liability company. Setup a professional mailing account, get commercial insurance. Register for taxes then open a business account, secure permit and licensing. There are food regulations guiding the enterprise, build or lease a factory location.
Target market and cost
Target market are people who drink cider products. Sell directly to customers, supermarkets, restaurant and grocery stores, hotels, bars and grocery stores. Once production cost are estimated the final cost of the product is determined.
Costs also depends on the type of cider from sparkling to traditional or colorless wine. A single bottle cost from $3 from $10 with profit margin of about 35%.
Promote the business promote the business through paid advertisement both online and offline. Use website, blog posts, social media channels and print media. Print flyers, posters, business cards, billboard, signage boards to attract patronage.