CASE STUDY
How Small Batch Standard Helped TrimTab Brewing Company Achieve Triple-Digit Net Profit Growth
SERVICE
Numbers Powered Growth
LOCATION
Brimingham, AL
"We went from a company that didn’t know if it could be self-sustaining, to having best-in-class operating earnings. Small Batch helped us understand that it’s not just about selling more beer; it’s about selling the right beer at the right price with the right expense structure. Establishing our financial benchmarks to above industry standards has been instrumental in accessing the capital we need to grow."
"We went from a company that didn’t know if it could be self-sustaining, to having best-in-class operating earnings. Small Batch helped us understand that it’s not just about selling more beer; it’s about selling the right beer at the right price with the right expense structure. Establishing our financial benchmarks to above industry standards has been instrumental in accessing the capital we need to grow."
TrimTab Brewing Company is a Birmingham, Alabama, craft brewery focused on expressive IPAs, experimental stouts, and fruited sours.
TrimTab Brewing believes their award-winning craft beer makes the world a better, more inspired place to live
Overview
✘ Lacking financial visibility resulted in cash flow issues
✘ Focusing on volume didn’t translate to increased margins and profits
✘ Investing in future growth required substantial capital
✘ Signed up for Numbers Powered Growth service with Small Batch Standard
✘ Tailored financial, tax, and growth strategies
✘ Established leading industry benchmarks to attract capital investment
✘ Ongoing guidance to support growth and profitability
✘ Triple-digit growth in net profit
✘ Increased revenue from distribution and taproom
✘ Peace of mind from industry leading advice
✘ Options for capital investment
The Challenge
Award-Winning Beer without Profits to Match
Since its opening in 2014, TrimTab Brewing Company has enjoyed plenty of time in the spotlight. They’ve been recognized as a top USA craft brewery by Hop Culture, Craft Beer & Brewing magazine and Forbes, and have earned multiple Great American Beer Festival award.
"We were doing really well until you looked at our profit and loss statement. Our only focus was volume, so even in a growth year, we were very disappointed in the results we were seeing. It was a frustrating and demoralizing place to be."
But behind that success, a lack of financial visibility had Founder and CEO Harris Stewart worried. Without improving performance, the brewery had little chance of raising the capital it needed to support its ongoing growth.
The Solution
Numbers Powered Growth Unlocks Potential
The Small Batch Standard team started by organizing TrimTab’s financials and data. Clearing the confusion started with some simple wins like making the transition to a proven software stack and set of processes, as well as amending their chart of accounts.
They then moved to guiding Harris and his team through internal industry benchmarks, helping them to understand overhead and margins, and starting to suggest where to improve profit.
Once the numbers and systems were stabilized, Harris says Chris became a surrogate CFO, helping him reconcile a passion for brewing beer with making sound business decisions.
"We looked at everything: our business model, product mix, inventory, staffing, margins, and our thinking around expense allocation,” Harris says.
“Benchmarking the expenses was a crucial moment. We were out of whack with some overspending — but not spending nearly enough in other areas. This financial clarity was crucial to unlocking capital and other opportunities.”
The Result
Transparency Leads to Exceptional Growth
TrimTab Brewing Company is seeing extraordinary results. Now that they have a champion for the numbers who provides reliable and timely advice, their team is off to the races.
Since we started working with Small Batch Standard, we’ve had triple-digit growth across our bottom line. It’s wild. I never imagined I’d see results like that,” says Harris.
“That boost comes from increased revenue from distribution and taproom, trimming expenses, and improving earnings before interest, taxes, depreciation, and amortization.”
Harris says the financial clarity creates improved decisionmaking, less stress, and a brighter long-term outlook for the brewery
"We went from a company that didn’t know if it could be self-sustaining, to having best-in-class operating earnings."
Ready to Explore Whether
Small Batch Standard
Can Help Your Brewery?
Schedule a short exploratory call with the SBS team to learn more about our Numbers Powered Growth service.