Am I buying a cider brand or a working cidery?
A working cidery owns production: an orchard or fruit contracts, a press, tanks and often a tasting room. A cider brand may own only a name, recipes and accounts, with the cider made under contract elsewhere. Ask where the cider is made and who owns the equipment, then check the books to confirm.
A listing that says “cider business” can mean two quite different things. Both sell cider. One owns the means to make it and the other pays someone else to. Which you are buying changes the risks, the work you take on and the documents your lawyer needs to read, so settle it before anything else.
How to tell from the listing
Look for an address, a production space and a list of equipment. A listing that talks only about distribution, shelf placement and followers suggests a brand. Then ask directly: where is the cider pressed, fermented and packaged, and who owns the tanks? The answer is usually short, and a seller who hesitates is giving you information too.
What a brand sale transfers
Usually the name, trademarks if registered, recipes, label designs, customer lists and the contract with the producer. Read that contract closely. Ask whether it can be passed to a new owner, what happens if the producer stops, and who holds the recipes. Your lawyer will check the trademark and the contract terms.
What a working cidery transfers
Equipment, any orchard or fruit contracts, the premises or lease, stock in tank and often a tasting room. Each brings its own checks: the state of the press and tanks, whether the lease can be assigned, and whether the growers will keep supplying. Compare the books with what you see on site. Our guide to buying a winery covers a similar production site.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- GuideBuying a food and beverage DTC brand in Canada
- GuideBuying a food and beverage processor in Canada
- GuideBuying a winery in Canada
- GuideBuying an Orchard in Canada
- Expert answerShould I buy an operating brewery or start one with used brewing equipment?
- Expert answerWhat does it cost to run a winery after you buy it?
- Expert answerHow is buying a winery different from buying a restaurant?
- Expert answerHow do I tell if an interior design studio’s contractors will keep working for a new owner?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWorking with a broker to find a business to buy
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