Question 1

Hi. Congratulations on your success and for your great product. I think this may be a nice opportunity. I have two questions: 1. While I don't want to downplay how important it is to be first to market, I do still wonder if someone with deep pockets could copy you. Do you see ...

Accepted Answer

Thank you Alan! First, there is always risk of a company with more money coming in and either copying or trying to push any product out of the market. I love being the first to market with Aloe Vera, but I prefer not to be be the only one. More competition means more consumer awareness for the category, and as long as we continue to put out a superior product, with a solid brand behind it, we should continue to grow and be successful. We will always be the first, and I will do everything I ca...

Question 2

Could you please tell us about your planned exit strategy, if any? Do you intend to become acquired or to continually operate as an independent company? Also, do you intend to pay a dividend, once convertible notes convert to equity? Thank you.

Accepted Answer

It is common practice in the spirits industry for one of the large suppliers to either acquire or partner with brands rather than do in-house R&D. They wait for a small independent company like ours to prove a market for the product, build up brand recognition, and then use their infrastructure and resources to scale. It is very challenging to remain independent and become a global brand, but I do value the quality of product that can come from being small, independent and craft. Having o...

Question 3

I would love to try your product before investing. Please advise who your distributor is in the Palm Beach FL area, or if not feasible, can I arrange to have a bottle sent to me at my expense? Thanks.

Accepted Answer

We are distributed by Stacole Fine Wines in Florida, however, they only sell to bars and liquor stores. There is an excellent bar and restaurant called The Alchemist Gatropub at 223 Clematis St, West Palm Beach, FL 33401. They make a cocktail with Chareau called the Forbidden Garden with Vodka, Chareau, Cucumber Water and Lime Juice or you can always try a little Chareau on the rocks.

Question 4

Based on your financials I'm left wondering how you come up with a $5mm valuation? Your product & labeling are very attractive!

Accepted Answer

Thank you Barnaby! We are not giving the company a $5 million valuation today, and instead postponing the valuation until a future round of fundraising. These Convertible Notes convert to equity at a 20% discount off the valuation a future round of investors would pay. For example, if the future round of fundraising is priced at a $4 million valuation, these notes would convert at a 20% discount, or a $3.2 million valuation. The $5 million number you are seeing is the Valuation Cap. It is a c...

Question 5

Hi, just a quick follow-up. First I wanted to tell you that someone close to me is very successful in this arena and one of his mixologists gave you very high marks for taste, market potential, and story. My first question relates to your answer below vs. valuation: While as a...

Accepted Answer

The $4.4 million in revenue capacity is based on our current pot still and steam boiler. At that point, we can either get a second still or trade up the current one to a larger one. We have the square footage at our current space to do either option. For the steam boiler (this is how we heat the still), we would need to trade up to a larger one. As for a buyout, we do have a page in our Investor Deck that shows a sampling of Spirits Company Acquisitions along with revenues and buyout multiple...

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