$8.93M pre-money valuation
$10.00 per unit
$8.93M pre-money valuation
$10.00 per unit
|1||The US craft spirit market is outpacing craft brewing & is set to grow from $2.7B to $20B by 2023.|
|2||Our Master Distiller holds two degrees in chemistry & a master’s degree in Viticulture & Enology.|
|3||Our spirits have top Tasting Panel ratings: Gin 97 points, Vodka 95 points, Rum 95 points.|
|4||We have a 2000 sq. ft. designer tasting room & fully established distilling & distribution process.|
|5||We have already established traction, demonstrating 200% growth even during COVID.|
|6||Our founder was a key executive in two billion dollar companies.|
|7||Our potato vodka and gin are gold medal winners in internationally recognized spirits competitions.|
|8||Our license allows us to have a visitor center where we can taste and sell our spirits & sell food.|
I've known the founders for many years and after I looked over the business plan I was so excited to be a part of it all. This is an exciting growth opportunity and a good investment given the rise in popularity of craft spirits! The companies recent growth despite the CoVID-19 impact and set backs speaks volumes. I also like the companies decision to invest in more sales staff for the SF Bay Area and LA markets. I also like the most recent addition of a direct sales channel so the company can sell spirits direct to the consumer via the internet. Plus their spirits are very tasty!
The age of bland, mass produced spirits is out, and we’re ushering in a new era of authenticity—an era of handcrafted whiskeys, gins, and bourbons that tell an all-American story of bootstrapped success and whisper of cinnamon, leather, and crème brûlée tasting notes.
Stepping inside our Sacramento-based J.J. Pfister tasting room is like stepping back through the ages—with a modern twist. But the real experience lies in our craft spirits themselves. Our master distiller has made an art form out of the creation process, using his extensive sensory training to make every one of our liquors sophisticated, authentic, and multi-layered.
We’ve got the licenses, we’ve built the experience, we’ve crafted the spirits, and we’re proud to say our hard work is paying off. Here’s a transparent look at our top line revenue and traction to date:
We’ve secured distribution and have big plans for expansion. Currently, we’re distributed by Young’s Market in California and Vin Sauvage in Nevada. We are in Raley’s, Nugget Markets, Total Wines in Sacramento, BevMo in the greater Sacramento area, and many restaurants, bars, and liquor stores.
The J.J. Pfister story spans more than 170 years, beginning with a humble knitting company founded by our family patriarch, J.J. Pfister. J.J emigrated to the United States from Switzerland in 1869 and went on to found a knitting company in San Francisco in 1876. His business survived the 1906 earthquake, and he won an honor medal at the 1915 Panama Pacific Exposition.
Our J.J. Pfister logo, a combination of a knitting machine and a copper still, marries our past, present, and future as we carry on the tradition of excellence started by J.J. Pfister in the late 1800s.
We’ve laid the foundation for success one building block at a time, starting with our designer production and tasting room. Our state-of-the-art stills are manufactured in Italy and include a continuous still, pot still and rectifying columns. We can make any spirit with these, and they are designed to save labor cost by completing runs within an eight-hour day. All told, our facility includes:
The US craft spirits market is booming, outpacing even the craft brewing market! The industry is expected to reach revenues of more than $20 billion by 2023, growing at an explosive CAGR of over 32% between 2018 and 2023.
Big brands can’t replicate the craft experience, but they can acquire it. And in recent years, the numbers have been staggering:
From rave reviews to features in the New York Times, the word is out about J.J. Pfister.
When J.J. founded the J.J. Pfister Knitting Company, he made a part of his mission to give back to his community wherever possible. When the earthquake of 1906 struck, he did just that. So when Covid-19 began its devastating sweep through California, we committed to continuing JJ’s legacy and stepping up for our community. This involved making the difficult decision to temporarily pause our production of craft spirits and instead begin producing hand sanitizer.
In the space of just two weeks, we were able to bottle over 16,000 gallons of sanitizer for first responders, including health care facilities, police and fire departments, utility companies, essential businesses and government agencies. We have also been able to donate hand sanitizer to charities such as Loaves and Fishes, The Food Bank, Guardian Angels, and Students for Health Care.
We have multiple revenue channels established, and more slated for the future. Thanks to our versatile Type 74 license, our income streams include:
70% of our customers are repeat customers, and our brand recognition is high in the Sacramento area. We have additionally recently expanded our sales team to include representatives in the San Francisco Bay area, the Los Angeles area, Sacramento, and Nevada.
In a key move, we recently unveiled our very first whiskeys—our High Rye Bourbon and Rye Whiskey. And we’re proud to say that both blends are so smooth you can drink them neat (that’s without ice or water). In addition to selling at a substantially higher price point then clear spirits, whiskies are amongst the most popular consumer spirits. Revenues in this category grew by 10.8%, or $387M, in 2019, and the whiskey market is slated for 5% CAGR from 2019 to 2025.
Note: Our whiskeys are not yet organic, but are blended in-house by our master distilling team and will be organic in future iterations!
Our 2020 milestones have included:
Since expanding into the Arizona and Nevada markets, our next key landmark entails getting our sales to 10,000 cases of product—which we project will be achievable in the next 2 to 3 years. The 10,000 case threshold is key in the craft spirits market, and puts us in a position to entertain an equity Investment from a large spirit house. Our type 74 license also enabled us to launch food sales in our tasting room this quarter, which will enhance our status as a visitor destination in the thriving Sacramento tourism industry.
As we continue to establish traction and rollout these next steps, we estimate that our value will be 6-8X top-line revenue. We expect revenue to be $3M within 4 years, and $10M soon thereafter.
They say it’s harder to establish a craft distillery than to fly to the moon and back, and we’ve done it! We have traction, we have distribution, and we’re primed for growth. Invest today to get in at our current valuation before our whiskey revenues start coming in.
JJ Pfister Distilling Company has financial statements ending December 31 2019. Our cash in hand is $330,000, as of August 2020. Over the three months prior, revenues averaged $122,000/month, cost of goods sold has averaged $76,000/month, and operational expenses have averaged $132,972/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We make craft spirits which are great in cocktails and neat. Our gin, brandies, rum, and vodka are organic
Whiskey and gin are our lead products and we want to have enough revenue to attract big spirit houses to take an interest in us. We hope that our value will be 6-8 times top-line revenue. We expect revenue to be $3M within 4 years and $10M soon thereafter. These projections cannot be guaranteed.
JJ Pfister Distilling Company LLC was incorporated in the State of Oregon in August 2016. JJ Pfister DSP, LLC is a fully owned subsidiary of JJ Pfister Distilling Company LLC.
Since then, we have:
Historical Results of Operations
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To date, the Company has been financed with $55,000 in debt and $5,898,382 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 2 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
JJ Pfister Distilling Company LLC cash in hand is $330,000, as of August 2020. Over the last three months, revenues have averaged $122,000/month, cost of goods sold has averaged $76,000/month, and operational expenses have averaged $132,972/month, for an average burn rate of $86,972 per month. Our intent is to be profitable in 24 months.
Since the start of 2020 we started producing hand sanitizer in mass. We are also planning to introduce our bourbon and rye whiskies, key sellers in the craft spirit space in 2020. We have added 3 fermenters greatly increasing our production capacity. We are planning a kitchen in our tasting room so we can serve food and out spirits on our patio. We are able to sell on line and ship our products within California.
Although we cannot guarantee it, we expect expenses in the next 3 - 6 months will remain flat with our ingredients and utilities being our variable expenses. We are a volume business and expect revenues to continue to increase at least 200% per year or more. These projections cannot be guaranteed.
We would look for another capital call from family. Kevin and Gail Keck have an income of $625,000 per year.
We are in a three tier distribution system. Our distributor is Young's market. We are the little guys and they pay more attention to the major spirit houses.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
It is possible the craft spirit space will grow slower than expected to reach the 12% market share of spirits that craft beer did. This is due to the epidemic.
Congress does not continue the craft beer added tax at $2.70 per proof gallon. It may go to over $13 per proof gallon.
Our gin is the favorite of the CEO of Raley's Family of Fine stores. That said we could be de listed at any time.
Gail Keck, Brian Keck, and Kevin Keck are key leaders. A loss of one would be harmful.
COVID-19 poses a risk to our business. There is no guaranteed timeline when we will be able to commence distillery tours, and general economic downturns could also impact our revenues.
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