Seven Stills Canned Cocktail Company

Sorry for the delay, the 1,500 employees they are bringing over is the first phase. We've heard numbers from Adobe of up to 5,000 people but that may have been exaggerated. And then the CCA number was pulled from their Oakland and San Francisco campuses for 2019. They will be expanding their facilities next year to accomodate the Oakland campus shutting down.

Do you want to shoot me an email and we can hop on a call?

Hey Mehmet, I'm so sorry for the delay in response here! So just want to make sure that this is 100% clear before getting into the details of your other questions, but this equity raise is for the current business. Everything that we are doing, including adding on the canned cocktail line and increasing our sales/distribution efforts, is going to support the current business and to continue to add value to your initial investment in the company. In 2019 we had two sources of revenue: 1) Direct to Consumer Retail - this was the Outer Sunset Taproom and The Brewery and Distillery only when COVID hit 2) Outside sales of our beers. Prior to COVID, we were self-distributing our beers and were focused very heavily on hype cans (16 ounce hazy IPAs) and had a self-distribution network. When COVID hit us we had to shut this side of our business down completely, and never restarted it (we eventually downsized and liquidated the Bayview facility and used the sale to pay off the debt with that facility and help get the Mission Bay facility fully operational). This self-distribution business was growing rapidly, and was contributing up to $200k per month in revenues when we eventually had to shut it down. With that being said, this $200k per month in revenues was extremely expensive to generate. We had two vehicles, two full time drivers, a logistics manager, a sales director, three sales reps, and a production team of seven that were supporting the sales. Coming out of COVID we have drastically shifted our approach to re-starting this side of our business, and to be honest, it has been challenging. Part of my approach to "rebuilding with intention" has been to focus our attention and resources on what is essential to the business. And while self-distribution theoretically contributes a higher profit margin, it is limited and extremely costly to operate. For that reason we have begun using distribution partners. This has been a big learning curve for us and has caused us to have a bit of a "false start" with bringing our beers back to market. We re-started our production/sales/distribution with this Hype Can model of brewing a new beer (usually Hazy IPAs/DIPAs) every week and sending them to our distributors to sell to the public. Essentially it failed. Morris is our distributor for SF to Mendocino, and while they're not huge, they do have huge brands like Racer 5, Lost Coast, June Shine, Allagash, etc. that have huge pull through in large chain retail. So when we started sending 50-100 cases of a new cool hazy IPA out to them every week it got completely lost in the mix and started piling up fast. We identified this as an issue pretty quickly and adjusted course accordingly. We shifted our attention away from all Hype Cans and started moving our focus towards the core six packs: Slo Flo Pilsner and Five Pounds Hazy IPA that we knew would perform well in large chain retail, which is what Morris and other larger distributors specialize in, which is quite honestly because they have growth potential. Morris has been begging us to get this canned cocktail line off the ground since day 1. It's literally the reason they approached us to start carrying our brand. As we've shifted our focus towards this core six pack business and have been working on our go to market strategy for our canned cocktail line, we've simultaneously taken on a full rebrand. The intention of this is to 1) Clean up the imagery so that there are less points of association for the end customer (i.e. are we trying to get you to remember Five Pounds is a Hazy IPA, but it's the one with the parrot, or it's the one in the green can, and then you don't remember who made it). So we removed the names of all of our beers, and moved to one consistent "mascot" across the line (which is now the bison across all beers). 2) Moved towards approachable styles that we can scale with consistency and do not require cold storage that most large chain retail does not have 3) Added on two new core items (rotating seasonal: currently the Apricot Wheat, which will move to a Pale Ale in August), and a cologne-style Kolsch, and transitioned the Hazy IPA to a WC IPA. The intention of this expansion was to target blocking/billboard effect in large chain retail, i.e. what you see with Fort Point/Cutwater having a full shelf in a grocery store. By first applying this rebrand strategy to our beer, we have been able to lay all of the ground work that will be needed to effectively launch the same strategy for our canned cocktails. We are actively expanding our distribution network with our beers (We just added on Bay Area Distributors and Mussetter) and are pitching to South Bay and Southern California Distributors now, that have 1) similar brands to Morris that are positioned to play in large chain retail. Simultaneously, we are securing placements in chain schematics for our beers (Total Wine, Bevmo, Whole Foods and pitching to Trader Joes, Safeway, Raleys for the fall set). If we can establish state-wide distribution in large chain retailers with our beers, and establish a state-wide distribution network, we will have the ability to effectively turn on the new product line in thousands of stores across California when we are ready to begin production. With all of that being said, the revenue growth of the beer line is just starting to pick up steam. We just launched the partial re-brand in April and hired Jeremy as our Director of Sales and we have grown from 73 buying accounts in February to 166 current buying accounts with 298 points of distribution. The revenue growth is beginning to pick up, but is still very low - we generated $8,683 in outside sales in March and were able to double it to $15,523 in April. However, this was without adding on Total Wine or Bevmo, and without the two new distributors). We are on track to double our revenues through distribution again this month and with the addition of new chains are forecasting we'll continue to double revenues through our existing distribution partners (without the addition of canned cocktails) to $200k per month by the end of the year. In terms of the retail growth, I included some of our recent numbers in the investor newsletter, but the growth is enormous. Offices have been returning in SF and corporate parties are happening again. I'm optimistic that we'll hit $1m a month in revenues in December from retail due to corporate parties, and am targeting $3-$3.5m in gross revenues from DTC ops this year. Hope that all helps and thanks so much for your questions and continued support. Your help with organizing the bands throughout COVID was amazing and brought an incredible energy to the space. Thanks!

Hey there, 1) Yes so your card is still good and you can present it for a discount at either of our locations. 2) No, but we host regular investor appreciation events that are free to investors and a guest. 3) The valuation cap rose from $28.2M to $35M. We are offering an early investor discount to the first $1M in shares sold at 25% off of the $35M valuation - bringing it to $26.3M. I like to keep the valuation component simple and do a multiple on gross revenues, and add assets to the sales price and deduct liabilities. 4) Because we are a private company, the only way that investors can/will make money on this investment is if there is a public market. At this time there are two options for what a public market would look like: a) We are acquired by a larger company and they buy all of the equity in the company b) We list our equity on a public platform, allowing investors to buy and sell their shares I'll write an update separately on brick walls and the path to exit. Please check here for that information.

Hey Brett, just wanted to make sure you're receiving the investor emails that I send out. I will continue to send regular updates out through the newsletter but don't actively check WeFunder. Feel free to reach out directly at tim@sevenstillsofsf.com

You just need to visit our location and let the host know you'd like to redeem your discount.

Absolutely, we're waiting to have the physical cards printed until the round is closed so please keep checking this forum and I'll send out updates closer to the March 19th close date.

First of all, my apologies for not seeing your questions sooner! 1. The lockers will be located in our lounge upstairs on the mezzanine. The idea is that our investors can store their bottles in their locker and use the private lounge space to entertain friends and clients. 2. We aren't planning to focus on online retail due to licensing issues with selling online. If we do we will likely partner with a company that will handle processing and fulfillment so I'd guess that they would not honor our internal discounts if we do go that direction. 3. Unfortunately the discount/card is tied to the investor and can't be transferred. 4. That's very difficult to answer, but we do feel that it's important to maintain the quality of our product while we grow so don't believe growing the business 50x in a year would make sense. Ideally we'll continue to double our revenues until we reach a point of needing to expand outside of northern California through a strategic partnership, which I would guess will happen between the $30m-$100m/year revenue range. We're currently targeting $5-10m for 2019 depending on when Hooper is fully operational so best case scenario would be one and a half years, worst case scenario is never. If our strategy does eventually adjust and strategic partners are not in our best interest we will adjust our investor model and offer dividends based off of cash flow. 5. We don't anticipate needing to raise additional funds until we are fully utilized at 100 Hooper and 1439 Egbert. At this point we aren't planning to issue dividends unless our exit strategy changes. Growth is very impactful on cash flow so dividends would greatly impact the current growth strategy. Thank you for your questions!

The cards are good forever.

Hey Jacob, are you receiving the investor emails?