Scott Donoho • Owner/Distiller
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Dan "Skunk" Donoho • Head of Tasting Room Sales and Asst. Distiller
-Full time at Skunk Brothers
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Glenn J. Smith • Financial Advisor
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The problem
the solution
From our Moonshine Corn Whiskey to our Honey Pear Liqueur, all of our spirits are hand-made right here in Washington with locally sourced ingredients. We believe we already have all the best ingredients in our community, so we work with local farmers and suppliers to produce the highest quality spirits from scratch.
We’re bringing all the elements that consumers have been sorely missing from the spirits industry — transparent sourcing, long-tested recipes and ever-evolving flavors.
The market
The spirits market has shown excellent growth in recent years, maintaining a decade-long streak of expansion. As the overall market grows considerably, the craft spirits niche has been steadily eating away at the gains of their mass-produced competitors. From 2017 to 2018, U.S. craft spirits distilleries grew to 760+ in 2016, from only 60 in 2003, approximately 2,000 permits issued. (source: American Distilling Institute, Market Watch, Jan. 2016)
Craft is 1.7% of the total spirits market by case sales and was projected to hit 8% by 2020. (source: BNP Paribas, Market Watch Jan. 2016) Despite a slowdown due to COVID-19 the market is still poised to continue its upward trend. Due to the nature of their upmarket positioning, craft spirits are also out punching its weight in value. The total market share for spirits hit a record 35.4% in 2015 of a $24.1 Billion industry. (source: Distilled Spirits Council of the United States, Feb 2, 2016.)
our traction
Last year was a challenging year for small distillers like Skunk Brothers because covid shut down many of the venues that serve artisan whiskies. Skunk Brothers used this period to pivot and grow its internet sales while continuing to focus on its local tasting room sales. The result of these efforts was a 90% year-over-year increase in sales. At the same time sales cost increased from an anemic 2.3% of operating cost to an industry-standard 25% of operating costs in 2020.
In addition, the company was able to increase Gross Margins by 14% from 59% in 2019 to 67% in 2020. This was the result of capital investments in more efficient equipment and retaining specialists to improve operational workflows.
We are now able to produce 60 gallons per day in our 320 gallon still and 100 gallon finishing still and have recently begun expanding from our beloved whiskey to gin, brandy and cordials.
Thanks to our superb location in Columbia River Gorge, a tourist hotspot full of natural beauty tucked away on the border between Washington and Oregon, we’ve built relationships with many of our customers who come back year after year to enjoy a visit to our tasting room.
Now that the bars and restaurants are opening, the market is once again surging, and Skunk Brothers is ideally positioned to capitalize on the growth!
What we do
We take the finest ingredients from all around Columbia River Gorge, Washington and Oregon and distill spirits that make taste-testers swoon. We distill all of our products in-house at our distillery in Washington — never repackaging other manufacturer’s spirits.
Each season we take the freshest fruit from our community and use them in our seasonal cordials; these liqueurs are a big hit and we struggle to keep up with demand.
Our “sweet” liquors can be sold fresh (without aging), our Smoke Jumper Bourbon is a hit with rapid aging and at the same time we’ve been steadily producing whiskey to age, stowed away in barrels to naturally enhance the flavor.
We are constantly evolving to align with trends in the industry. Of the 7 most recognized whiskey trends listed in 2020, we meet almost all of them.
We have gained experience and tried new things, including experimenting with younger whiskies. Our Whiskey Road and Smoke Jumper Whiskeys have been recognized for taste and quality. We are also finding success in experimentation with oak and aging processes, and our whiskey blends are seeing tremendous growth. Retailers are also able to visit our distillery and pick and choose the liquor they want on their shelves.
With the economic impact of COVID-19 forcing all the major spirits manufacturers to delay releasing new products until 2022 coupled with consumers’ desire to get out and try new experiences gives small producers a unique marketing opportunity in 2021. Distilleries have to produce high quality products that are unique and stand out. We believe we have that uniqueness and we’ve seen that people love what we are doing.
the business model
How we are different
The vision
We have removed the bottlenecks we had in our production, we can now brew 1500 gallons of mash per week and will be able to double that output by mid summer, and we can now keep our stills running 7 days a week and will be able to expand distillation with this new raise. That means we want to fund a sales and marketing department to bring our unique flavors to a wider audience.
We want to continue expanding our product line, incorporating age-accelerated whiskey into our repertoire — as well as a bevy of other exciting offerings.
These investments will allow our brand to grow well beyond the Columbia River Gorge market and buck the seasonality of the tourism market.
OUR TEAM
We’re the Donoho family. We’re a family of veterans — who have served from WW2 to Operation Enduring Freedom and — we continue to serve. We are all ecstatic to be able to give back to the veterans and first responders community through various charity events. and we are all ecstatic to be able to give back to the veterans and first responders community through various charity events. Last year we gave 10 cents of every bottle sold to Patriot Paws. An outstanding organization helping veterans assimilate back into society with companion dogs for support. This year we will also be giving to Smoke Jumpers Association non-profit.
We grew up hearing stories about Grandpa Donoho, who hustled his way through prohibition and the Great Depression by slinging moonshine to locals to feed his family.
Today we carry on his tradition and hope to do him proud one bottle of whiskey at a time.
WHY INVEST
Skunk Brothers Spirits has already demonstrated we can sell our products with the best of ‘em. Without any sophisticated marketing or sales-team we’ve been able to attract fans from all over the country — simply thanks to our superior liquor.
So far, we have had to play defense, with demand peaking and our facilities unable to catch up.
By investing in improving operational efficiency, and expanding our sales and marketing organization, there’s no telling how fast we can grow.
We’re confident, not just because the numbers are in our favor, but because there’s something magical that happens when someone tastes our craft spirits. So, join us, and be part of the Skunk Brothers family as we get our craft distilled spirits out into the world. For us it is a labor of love that we know you will enjoy being part of.
Maximum Number of Shares Offered subject to adjustment for bonus shares
04.14.22
Hi guys, we have finally been able to get a complete list of our investors from StartEngine with addresses and hopefully have gotten all the Swag items sent out. Our annual report is due at the end of April and you will be able to track our progress with that document located under the "My Investments" link in your profile. Also, I am not receiving notifications from the site here when someone posts a question so please contact us directly through our main website at Skunk Brothers Spirits . com
Thanks!
Scott
01.05.22
Hey folks,
It looks like we are all finished up for this round of investing. We will be getting the Perk items together and start shipping here this week if the weather cooperates. We have been snowed in all weekend out here! Thank you all for investing with us.
Scott
11.29.21
[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the Skunk Brothers Spirits Inc. offering. Here's an excerpt describing the specifics of the change:
Campaign has extended end date by 30 days
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
11.18.21
Hey everyone!
We, have great news from the Proof Awards 2021. We received awards in both the double blind taste competition and the non-blind taste test competition. Here are some of the results!
Double Blind taste test:
11.12.21
Hey everyone!
I just wanted to share our newest Television spot with the WB 32's Talkin' Ducks in Portland, Oregon. It's a broadcast for Oregon Ducks enthusiasts and fans of college sports.
Enjoy!
-Scott
11.10.21
Hey everyone!
I just wanted to share our newest Television spot with the WB 32's Talkin' Ducks in Portland, Oregon. It's a broadcast for Oregon Ducks enthusiasts and fans of college sports.
Enjoy!
-Scott
11.04.21
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Skunk Brothers Spirits Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Skunk Brothers Spirits Inc. be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
10.31.21
Hey there folks,
I'm excited to announce that we have been working with a local author on a very cool collaboration. Mr. John Dover is a Portland, Oregon based author who recently released his newest book "Once Upon a Fang in the West. That's right, Vampires in the old west! We have been working with him to produce a special old west style Corn Whiskey to commemorate the book release. We call it "Aftermath" Barrel Aged Corn Whiskey. You will be able to order both the book and the whiskey here in the next couple weeks from our online store!
10.16.21
Hi there everyone, we are happy to say that Fall has arrived in the beautiful Columbia Gorge. The leaves have started to change, the weather has cooled and that makes visiting a must. We are blessed to live and work here and we hope we get to see you here in the distillery. While you are here, pick up some of our Spirits for fall Cocktails. Apple Pie, Cinnamon Whiskey, Cherry and Chocolate Cordial all make great cocktails and terrific gifts! In the meantime here are some great photos of recent visitors, it can be hard to take a minute to snap photos when the tasting room is full!
Scott
10.05.21
Guys, we had so much at fun at the local Bigfoot Bash! We poured samples and cocktails all day, made a lot of new friends and re-connected with many old ones. We hope you all can come see us some time.
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Andrew Jericho
3 years ago
When do u start seeing returns on the investment I've been here since it started will there be returns
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