INVEST
min $100
If you invest, you're betting Blind Tiger, Inc. will be worth more than $4.5M in the future.
Notable Angel
Raised $25k or more from a notable angel investor
Fast Growth
Revenue growing 2X/yr for at least prior 6 months
In 2017, I opened a speakeasy in Erie, PA, that became known for its craft cocktails. In March 2020, we were mandated to takeout only because of the pandemic. Although 90% of our sales came from the bar, we couldn't legally sell alcohol to go. However, we refused to close our doors, so we started crafting non-alcoholic versions of our cocktails to keep ourselves afloat.
Today, 60% of US consumers actively seek better-for-you benefits in all beverages, and 43% of millennials opt for more non-alcoholic alternatives over traditional spirited drinks. However, according to the IWSR, only 3% of the beverage market offers no- and low-alcohol options.
Blind Tiger Spirit-Free Cocktails create all-natural, spirit-free adult beverages that capture the complexity of classic cocktails while invoking the mystique of the Prohibition era. We aim to provide a sophisticated beverage experience that stands on its own or serves as an effortless mixer, ensuring everyone feels a "part of the occasion."
Our non-alcoholic beverages recreate classic Prohibition-era cocktails, including the Bee's Knees, Southside Mojito, Ward 8, Sidecar Mimosa, and Lavender French 75. Blind Tiger has earned 26 prestigious beverage competition awards, including four double gold medals from the San Francisco World Spirits Competitions. These curated recipes can be enjoyed over ice for a non-alcoholic version or a spirit added to make the traditional cocktail.
Our target market includes not only alcohol abstainers but also millennials and Gen Z consumers seeking healthier yet sophisticated and authentic lifestyle options. Our strategy is to reach consumers through national grocery, natural retailers and beer, wine, and spirit distributors. We're also looking to grow strategic partnerships with advocacy groups such as Mothers Against Drunk Driving and groups driving community and social inclusion. Our strategy capitalizes on data from Nielsen reporting non-alcoholic products saw a 19% increase in sales in 2022.
According to The Insight Partners, The Total Addressable market in the low and no-alcohol beverage industry is 1.8 trillion dollars. Based on our Target Market, our serviceable available market (SAM) is $936MM. Our SOM assumes 2% of the market, or just under $19MM.
Today, we are in 1,000 retailers nationwide, including Sprouts, HomeGoods, and Wegmans. We support these partnerships through promotional opportunities, demos, and direct advertising. Our direct-to-consumer channels include our website, wholesale sites, and Amazon, through which we utilize influencers and social media ads to increase brand awareness. We currently provide subscribers with free shipping and discounts, and we're developing a loyalty program to provide deeper discounts, early access to new varietals, and invitations to exclusive events.
In the coming year, we will focus on strengthening our partnerships with current retailers like Wegmans & Sprouts, and our statewide distribution partners. While our primary focus remains on non-alcoholic offerings, we're capitalizing on the goodwill of our growing brand and the rising demand for lower alcohol RTDs. In quarter three of 2024, we will launch a 3 SKU, low-alcohol 5% ABV line expansion in Michigan. We're starting with a Bee’s Knees Gin Cocktail, a Vodka Mojito, and a Tequila Lavender Margarita.
Future innovation includes a reduced-sugar and Manhattan varietal to our non-alcoholic line in early 2025.
In the next 2-5 years, we aim to increase our presence through distribution partners and retailers in northwest and midwest and expand to tourism opportunities on cruise ships, airlines, and stadiums.
In 2023, while the non-alcoholic market grew by +5% in volume the RTD market surged by 11.4%, driven by consumer demand for high quality, innovative flavors, and lower alcohol content. Based on BevSource, vodka and tequila are the most popular spirits, influencing our recipe focus. Partnering with our established Michigan distributor, Imperial Beverage, who has sold 2500 cases of our current line over the past two years, we'll utilize the same experienced reps and existing retail relationships to launch these new varietals. This line extension will only be focused on Michigan as a test and potentially e-commerce to capture our existing DTC customers and inform future markets.
Forward-looking projections cannot be guaranteed.
Our gross margins are currently 45-50%. By expanding our retail and restaurant footprint through national, mid-size, and statewide distributors, we project revenues of $1 mm, or over 23,000 cases sold compared to 8,000 last year and $15 million by 2027.
In 2023, our revenue more than doubled due to distribution and retail growth through three packaging options and five varieties for 13 SKUs.
Based on our year-over-year growth for our current products, we are projecting a 300% increase in unit production in 2024. Through economies of scale, we will increase margins by 10-15%. This year, we expect to sell 1500 cases of our RTD canned cocktail line, generating $75,000+ in revenue at 45-50% margins.
We will streamline packaging options and are poised to achieve profitability by Q1 of 2025.
If our RTD launch in Michigan reaches or surpasses our $75,000 goal within its first year, we will expand our e-commerce presence and enter Massachusetts the following year, leveraging an existing distributor partnership. This expansion will require additional upfront marketing investment estimated to be 10-15% of our marketing budget, extending our profitability target to Q1 of 2026. Any future expansion of the alc RTD would be highly focused on entering profitably. Should the RTD launch fall short of revenue goals, we'll reassess and refocus solely on our non-alcoholic line to achieve profitability by the third quarter of 2025.
Our sales channels are currently at 25% e-commerce and 75% distribution/retail, with targeted stabilization at 40% and 60%. Our current e-commerce and online wholesale customer re-order rate is 25%, which aligns with the industry average.
As the CEO, I have over 25 years of experience in hospitality, marketing and sales. I hold a Ph.D. in entrepreneurial leadership and am the founder of Room 33, a speakeasy restaurant that has been in operation for over six years. Elizabeth Heffernan, Product Development Manager, has over ten years of experience in mixology. We recently hired a VP of Sales, Ron Manna, who has over 15 years CPG experience generating multi-million dollar revenues for Wrigley and Frito-Lay. Lastly, Rob, our part-time CFO, has over 15 years financial experience working with Booz Allen Hamilton and the federal government. He is also a co-founder of a multi-million dollar AgTech startup and has been instrumental in sharing his financial expertise.
