|1||Our rum is made by hand by one of the most respected experts in the world of rum, Mr. Javier Herrera|
|2||Intended international distribution: Caribbean, Europe & USA by Q4 2021 (year 1).|
|3||Lean business model should allow profits from year #1 (not guaranteed).|
|4||Artesano is created in Puerto Rico, the Rum Capital of the World.|
|5||A federal law called "Rum Cover Over" returns part of the tax paid to sell in the USA to rum makers|
|6||51% employee-owned. Now, we will be opening our ownership to our fans worldwide.|
When I started working in the alcoholic beverage business, I fell in love. I loved the energy, the dynamics, and the people. It's a fun business that makes a lot of money...What's not to like?
He was consulting the company I worked for on some technical issues, while I was Brand Marketing Manager for a top rum brand. Javier is a very important person in the rum business, and I was assigned the responsibility of coordinating his activities during his visit. We got to spend a lot of time together and we "clicked" immediately.
After Javier met with the Rums of Puerto Rico Director, he understood "Rum Cover-Over".
"Rum Cover Over" is a unique Federal Law that gives back a percentage of the Federal Excise Tax to Puerto Rico rum producers. Between Rum Cover Over and other manufacturing & tax incentives Puerto Rico is the most profitable place to manufacture rum in the world. That is the reason Bacardi, the #1 rum brand in the world is established in Puerto Rico.
Javier told me he had always dreamt of having his own distillery, and we agreed to do it in Puerto Rico as partners.
After a couple of meetings with investors we immediately realized we needed a Distillery if we wanted to get ARTESANO off the ground....that's how I met Luis.
We met in a restaurant for lunch, both with our computers. I presented ARTESANO to Luis, he presented his distillery and brand portfolio to me. ARTESANO needed a Distillery, and the Distillery needed a Sales & Marketing person. In that very meeting, we understood we could help each other.
We got started on fine-tuning our plan, discussing go to market strategies, efficiencies, best business models and now...we come to you to help us get the fuel to make ARTESANO really happen. The funding we need is to purchase raw materials, packaging materials and to fund our sales & marketing efforts to make ARTESANO an international brand from the first year.
Our 2021 timeline as planned with key milestones:
"As a leading figure in the Puerto Rican cocktail and Bar scene we fully support the efforts of Destilería Cruz and Artesano Rum in creating a truly Artisanal rum. They've become an asset to the local distilling community by incorporating the use of copper pot stills in their production, not just following what has become the traditional method of industrial rum making for Puerto Rican Rum Brands. We believe Artesano will become a historic brand by showing the industry - locally and internationally - that Puerto Rico can make Pot Still Rums. We're eager to show the world what this Puerto rican Rum can do!"
Owner - La Factoria (#32 Worlds Top 50 Bars), Jungle Bird, Caneca Coctelera Móvil.
"There has been very little transformation in the spirits market in recent history but ARTESANO is about to revolutionize the world of rum. I want to be part of it and so should you!"
Accomplished International Business Executive & Global Strategy Visionary
Ron Artesano has financial statements ending July 31 2020. Our cash in hand is $0, as of July 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/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 produce and bottle Ron Artesano, a premium handmade rum brand crafted in the mountains of Puerto Rico, the Rum Capital of the World.
In 5 years, we hope to be selling Ron Artesano in Puerto Rico, Spain, Germany, Croatia, France and USA.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Artesano Rum Corporation was incorporated in the State of in June 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in June 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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. We plan to raise capital in 12 months. 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
Artesano Rum Corporation cash in hand is $0, as of June 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 24 months.
We currently do not have any material changes as the company is recently formed and has no transactions to report YTD.
As we have start up costs, including legal costs, supply and marketing costs. These can vary from $10,000 - $100,000. Depending on available capital, we can expect revenues during the initial 6 months to vary between $50,000-$150,000. We hope to generate revenues by end of 2020. We believe we'll need $50,000 in capital to get to that point. These projections cannot be guaranteed.
For additional capital outside of this offering, we are in conversation with potential equity partners including private equity firms along with personal contributions from founders.
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.
We need to create business development structures to properly handle all international markets.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Trade execution supervision will have to be delegated in part to distributors to keep operational costs low in every market.
It's important to achieve relevancy to industry stakeholders and implement business model where we can facilitate some level of ownership so we can better compete with big brands.
Big brands could block our entrance in major supermarkets or liquor store chains since we will not be able to compete with our smaller budget.
COVID-19: Since December 31, 2019 the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions.
The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses remains unclear currently. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods. Note: this disclosure assumes there is no significant doubt about the entity's ability to continue as a going concern.
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