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AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

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Page 1: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S
Page 2: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

PRODUCT OVERVIEW

• Line of bottled, craft cocktails

• Batched with premium spirits and fine, natural ingredients

• Crisp and naturally low-calorie

• Five gold and bronze medals

• With #1 and #2 U.S. distributors

Page 3: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

MISSION/VISION

MISSION BE AT VANGUARD OF reinvigorating a tired, value category by introducing style and craftsmanship

VISIONDevelop premium, convenient products that upgrade current experience to expand category reach

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UNIQUE + INNOVATIVE

FITTING IN + STAID

VALUE ($7.00/750ML)

PREMIUM ($14.99/750ML)

Skinny Girl (13%)

Austin Cocktails

All Other(26%)

Daily’s(26%)

TGIF(5%)

Bacardi(6%)

Jose Cuervo(23%)

MARKET OVERVIEW

Page 5: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

• Started three successful businesses, two sold to publicly traded companies

• One of WSJ’s “Face of a New Generation of Leaders and Entrepreneurs”

• Stanford, BA in Economics

• Harvard, Master of Public Policy

• Ground-floor drink developmentwith company bought by Post

• Founder of successful PR,marketing, events and branding firm

• Santa Clara, BA in Communication

• Women’s golf team member

TEAMKELLY GASINK, CO-FOUNDER

JILL BURNS, CO-FOUNDER

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AUSTIN COCKTAILS PRODUCT LINE

BERGAMOT OR ANGE MARGARITATequila + Natural Lime + Natural Bergamot Orange + Austin Cocktails Natural Triple Sec + Organic Agave

CUCUMBER VODK A MOJITOVodka + Natural Cucumber + Natural Mint + Natural Lime + Organic Agave Nectar

FRED’S RUBY RED COCK TAIL Vodka + Natural Ruby Red Grapefruit + Natural Lime + Natural Mint + Organic Agave

PAR ADISE FOUND COCK TAILVodka + Natural Coconut Water + Natural Stone & Citrus Fruits + Natural Basil + Organic Agave Nectar

TE A T WISTER COCK TAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar

FRED’SVodka + Natural L

PAR ADVodka + Citrus Fr

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ALCOHOL MARKET OVERVIEW

-2%

0%

2%

4%

6%

8%

Value Premium High End Super Premium

17%

33%

30% 20%

2014 VOLUME GROW TH & % MARKE T SHARE BY PRICE SEGMENT

SOURCE: EUROMONITOR, RTDS JULY 20141 IWSR DATABASE 2 DISTILLERS’ SPIRITED ATTACK, BNP PARIBAS, JULY 2015

BE VER AGE ALCOHOL MARKE T DATA & TRENDS

• 2nd largest beverage category after soda

• US spirits market is 3 billion cases and $80 billion in annual sales1

• Growth from cocktail maturity, flavor innovation, deregulation

• Craft is a high momentum category with 2014 volume growth of 58%2

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MARKET OVERVIEW

5,200

5,400

5,600

5,800

6,000

6,200

6,400

6,600

2013 2014 2015 2016 2017 2018

2013-2018 FORECAST RTD SALESTOTAL $ VALUE (000)

RTD CATEGORY RIPE FOR INNOVATION

• 2014 RTD category is $5.8 billion in sales forecast to grow 20%

• Craft offering dramatically expands category reach

• Inconvenience a big disadvantage over wine & beer

• Large distillers allocating innovation capital elsewhere

Page 9: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

MARKET OPPORTUNITY

PEPSI CENTERBasketball, Hockey,

Concerts and Events

VIRGIN AMERICA200 ml flask

WESTFIELD MALLSpring, Summer & Winter

Fashion Shows,San Jose, CA

SQUARE CORPOR ATEHappy Hour, San Francisco, CA

W HOTELWet Deck Pool Party

PROBLEM SOLVER FOR CONSUMERS & VENUES

• Eliminates every step from procurement to mixing

• Bundles premium spirits, natural ingredients, craft taste, naturally low calorie

• Delivers venues good margins, fast depletions, low staff, no waste, quick turns

Page 10: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

TARGET CONSUMER

DEMOGR APHIC

• Men and women ages 25-64

• Above average education and income

• Appreciates natural ingredients

• Enjoys drinking, entertaining or socializing

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PRODUCT ANALYSIS

HOW LIKELY ARE YOU TOBUY THESE COCKTAILS?

• Conducted by Tragon, a global beverage testing leader

• Need >5.0 in Overall Opinion and >50% in Purchase Intent for commercial viability

• Most products on shelves score between 5.1 – 6.7 in OO and 50%-60% in PI

OVERALL OPINION ANDPURCHASE INTEREST

5.1 B

6.7 A

6.9 A

7.2 A

7.4 A

34%

63% 54%

68% 73%

0%

20%

40%

60%

80%

100%

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Overall Opinion Definitely/Probably Would Purchase

OVER

ALL

ACCE

PTAN

CE -

9-PO

INT

SCAL

E

PURCH

ASE INTEN

T

Skinny Girl

Vodkarita Paradise Found

TwistedTea

CucumberMojito

79%

52% 45% 50%

18%

25% 27%

36%

4%

23% 29% 14%

0%

20%

40%

60%

80%

100%

Definitely/Probably Would Purchase Might or Might Not Purchase Probably/Definitely Would Not Purchase

PERC

ETN

T O

F CO

NSU

MER

S

AustinCocktails

SkinnyGirl

Jose CuervoCocktails

BacardiClassic Light

Cocktails

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MARKETPLACE SUCCESSESCORPOR ATE

• Five award winning drinks on shelves

• 750mL and 200ml sizes

• 5,000 cases sold in 3 cities during proof of concept

• 50%+ starting gross margins

• Family ownership and craft soul

• Glowing articles and blogger reviews

ON AND OFF PREMISE

• With #1 and #2 US distributors

• In top five chains in TX and high-end grocery in Northern CA

• Expanded to Colorado and New York

• In Madison Square Garden, Pepsi Center, University of Texas, Virgin America

• Used at VIP events and at fine hotels

• Organic A-List celebrity use and interest

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GROWTH OPPORTUNITIES

CHANNELS & MARKE TS

• Licensed retailers

• Large venues for sports, concerts, events, corporate parties etc.

• Hotels, golf courses and pool/beach side

• Private label and International

LINE E X TENSIONS

• Other spirit bases

• Other packaging sizes and substrates

• Cocktails on tap systems

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SOURCES AND USES OF FUNDS

PHASE IPRE-LAUNCH AND COMMERCIALIZATION

$2 millionFounder funding since 2012

• Product development (14%)

• Brand development & marketing (25%)

• Payroll (15%); Overhead (20%)

• Three production runs (26%)

SOURCES

USES

PHASE IIMARKET EXPANSION OFFERING AT $3.8 MM VALUATION

$500,000-$1.5 million Angel funding

• Advertising and marketing

• Sales team

• Research and development

• Operations and working capital

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APPENDIX: ON PREMISE EXAMPLES

Westfield Mall, San JoseSpring, Summer & Winter Fashion Shows

CBS Alice’s Radio Summerthing, San FranciscoConcert in Golden Gate Park

Virgin America200ml flask

Four SeasonsResidences

Square Corporate, San FranciscoHappy Hour

Pepsi CenterBasketball, Hockey, Concerts & Events Fairmont Hotel,

San FranciscoW HotelWet Deck Pool Party

Page 16: AC Presentation 1.2016E - Centralcentraltexasangelnetwork.com/wp-content/uploads/... · TEA TWISTER COCKTAIL Vodka + Natural Real Tea + Natural Lemon + Organic Agave Nectar FRED’S

APPENDIX: ORGANIC CELEBRITY INTEREST

Hunter Parrish

Camilla Alves Faith HillTwitter Founder Jack Dorsey

Kelly Clarkson

t ParrishHunter Parri

Camilla Alves

Kelly C

Faith Hill

Jimmy Kimmel

Tim McGraw