Tuesday, September 7, 2021

Sonoma Coast Spirits - The Profit Update

This week on The Profit, Marcus Lemonis is in Petaluma, California to make a deal with Sonoma Coast Spirits.  Sonoma Coast Spirits is a family-owned business that creates hand-crafted spirits that are infused with ingredients from their own garden.  They are a smaller operation that has hopes of expanding beyond their local reach.  Marcus will need to look at the changes necessary to move from a local business to national operation.

Let's take a look at some information related to Sonoma Coast Spirits as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • Here is a ten-minute preview video of the episode from The Profit Facebook page. 
  • The filming for this episode was done in July 2021.
  • Here is the Sonoma Coast Spirits website and Facebook page
  • From the about section of their website, "Sonoma Coast Spirits was founded in 2011 by Doug and Jill Olson. With Doug’s untimely passing in 2018, Jill is at the helm of the business today, supported by a staff of her four grown children."
  • Their products are all natural products that are hand-crafted and infused with ingredients from their own garden in Sonoma County which include fruits and herbs.
  • Their products include vodkas ($28-$35), peanut butter whiskey ($35) and craft cocktails ($16).  
  • Sonoma Coast Spirits have been available for sale at local Costco's since 2018. (Link)

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal - Marcus initially offered $250,000 for 20% of the business and a line of credit for $250,000.  The counter offer which was accepted was $300,000 for 25% of the business.  The money would be used to build inventory, fulfil open orders and to expand into a larger space.
  • Marcus decided to walk out on the deal due to the following reasons:
    • He brought in bottle and label designers to help redesign the label of Sonoma Coast Spirits, but it was never changed.
    • Marcus visited and discovered they were going to try canning craft cocktails without telling him.
    • Jill continually doing what she wanted without communicating to Marcus.
  • Marcus suggested Jill work on the business with her family and they could potentially revisit him investing in the future.
  • The labels on their website are still the same labels that they had before the show filmed.
  • After the episode, Marcus Lemonis said, "Tonight’s episode failure is on me and no one else. (Link)
    • He also said, "Give @sonoma_spirits a try.. amazing family and great product. They will be better than ever." (Link)

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page. Also Like us on Facebook or Follow Us on Twitter to stay up to date with all things involving The Profit.

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