Husk offers a rich brew of business options

AUNIQUE business proposition combining a bar and eatery, craft beer brewery, and a coffee roasting operation is for sale in the hub of Wellington’s cafe and bar culture area.

Husk Bar & Eatery, at 62 Ghuznee St, combines a bar and cafe/restaurant with a working commercial brewery producing a range of distinctive beers under the Choice Bros brand.

Gerard Dunne, of ABC Business Sales, says the hospitality and brewing operations already are ‘‘nicely profitable’’ and the readyto-run coffee-roasting set-up is poised to ‘‘add enormously’’ to future profitability under the Husk Coffee Company brand.

‘‘The vendor doesn’t know of any other such enterprise in New Zealand or Australia that has all three operations under the one roof.

‘‘So this is an unprecedented opportunity to secure three complimentary, independent and vertically integrated businesses in one brilliant location, combining a high-profile front of house ‘shop window’ with authentic standalone beer and coffee manufacturing profit centres out back.

‘‘The location fits perfectly. Not only is Wellington the hospitality capital of New Zealand but the Cuba/Ghuznee quarter is the city’s cosmopolitan heartland, and one of its fastest-growing precincts, which provides the perfect ‘context’ for the business.

‘‘Energy is building in the area every day, with a boutique hotel under construction next door and several apartments buildings are being built nearby that will bring hundreds of new residents into the area.’’

Dunne says Husk’s triple-income stream with a shared overhead structure means its three independent brands can operate together ‘‘to provide exceptional profitability and resilience’’ in a market that targets discerning consumers.

Choice Bros Brewing was an already-established brand when Husk Bar & Eatery opened in December 2016.

Dunne says Choice Bros Brewing is well recognised and regarded, and its partnership with Beertique for nationwide distribution means it is well placed to expand production.

‘‘It’s conservatively projected to increase production by around 30 per cent in 2018/19.

‘‘As far as Husk Coffee goes, it’s all upside once the Petroncini TT25 machine gets underway in the hands of a new owner,’’ Dunne says, ‘‘with weekly production of just 150 kilograms generating revenue of over $20,000 per month.’’

Husk trades daily from 8am till late, offering a cafe-style menu in the morning and a casual tapas/ sharing plate dining experience in the evening.

The bar’s 14 taps include Choice Bros beers and limited release collaborations and as well as a range of premium spirits, barrelaged cocktails and Fentimans Sodas, there’s a selection of primarily organic, natural and wild ferment wines.

‘‘The premises have been fitted out with exceptional attention to detail,’’ Dunne says. ‘‘Their extensive use of timber and architectural lighting, with the amazing backdrop of brewing and roasting production, provide an exceptional ambience.

‘‘All plant and equipment is top quality and offers ample capacity for future growth.’’

The brewery was designed by Husk and built by Premier Stainless Systems in California. The brew house has a 7BBL capacity (850 litres) with four 1000-litre fermenters and two double-size 2000-litre fermenters.

‘‘The brewery is perfectly suited to the space and produces enough beer to service Husk Bar & Eatery, with additional sales to local bars and national sales through Beertique and others,’’ Dunne says.

‘‘Given its unique positioning in the market with unusual, interesting and experimental beers, it has the capacity to create new categories without competition from other, more generic offerings.’’

He says the brand has ‘‘huge potential’’ to grow sales through bottling and canning its core range for sale in bars, liquor stores, and supermarkets nationally and potentially overseas, channels which have already been validated through profitable sales by the current owner.

‘‘Although Husk is a young business, it is already highly profitable, and projections prepared by the current owner for the bar, brewery and roastery operating together show potential for annual EBPITDA of $800,000 in the near future.

He says this is a unique, scalable, integrated hospitality business ideal for an individual operator looking for a solid business, or something an existing operator could take in their own direction.

‘‘Prospective purchasers may value this opportunity quite differently depending on their particular strategic situation, and the vendor has chosen therefore to provide price guidance at $1.35 million, which is explained further in the Information Memorandum.

‘‘Interested parties are invited to propose terms for purchase that incorporate tangible assets of $925,000 and stock value of $10,000.’’

❚ For information, contact Gerard Dunne on 027 220 8277 or at: gerard@abcbusiness.co.nz.