|1||Advocated for law change and became Florida's first craft distillery with a vodka tasting room|
|2||Nationally recognized spirits—Platinum, Double Gold, & Gold awards from renowned Spirit Competitions|
|3||Multiple Revenue Streams: Whiskey Distilling School, Hand Sanitizer sold on Amazon, and White Labels|
|4||Active distributions agreements to bring award-winning El Encanto Silver Rum to 5 additional states|
|5||Distribution established in Wal-Mart, Total Wine, ABC Liquors, Disney, Busch Gardens, & Sea World|
|6||Located in a high-traffic tourist district— Ybor City. Offering a unique experience for visitors|
|7||Largest craft spirits portfolio in the nation, with 32 independently successful SKUs established|
|8||Unique distilling process incorporates fresh Florida produce and Florida sugar cane|
At the Florida CANE Distillery, we’re a team of craft spirit experts dedicated to creating a tasting experience that captures the Florida lifestyle. With fresh Florida produce and Florida sugar cane at the forefront, we’ve established brand recognition, distribution, and pride of place as Florida’s first EVER vodka tasting room. Today, we’re poised for exponential growth as the global craft spirit market booms—outpacing even craft beer with a CAGR of over 32%.
We don’t settle for ordinary. Our craft spirits can already be found in Wal-Mart, Total Wine, ABC Liquors, Disney, Busch Gardens, Sea World, & more thanks to our exceptional distribution team and award-winning product.
We wanted to create an end-to-end experience, where visitors to our distillery could taste our spirits, see our micro-distilling process, and buy their favorite SKUs to take home, but outdated Florida legislation initially prevented us from taking the leap...So we set out to change that. The result? After yearly visits to the state capitol, we were officially licensed to become Florida's first craft distillery with a vodka tasting room.
Florida CANE Distillery began in 2012 as a proof of concept company by two good friends, Lee Nelson and Pat O'Brien. Using a small business loan of $40,000, the pair established the company in an 800 Sq. Ft. warehouse and released our flagship product, Florida CANE Vodka, followed by a succession of flavored vodkas made with locally-sourced produce. By the end of 2014, they launched and developed a line of high-proof moonshines—Sunshine Moonshine—as well as an award-winning New World Gin—Tamiami Gin.
Lee and Pat advocated tirelessly for legislative reform that would pave the way for the establishment of Florida's first craft distillery with a vodka tasting room, resulting in press exposure and community support that led to increasing demand from large retail accounts and Florida based theme-parks. To keep up with the demand, the pair moved operations to a larger space in the historic Ybor City district of Tampa, Florida...And the rest is history!
The craft spirits market is set to overtake the craft beer market, with the industry expected to reach revenues of more than $20 billion by 2023 at a CAGR of over 32%.
We take pride in perfecting every batch that we produce— from the selection of our ingredients to the production. Unlike large batch companies like Tito's, Ciroc, and Grey Goose who extract sugar from cheap grains, we opt for Florida-grown sugar cane: a more labor intensive, but purer form of sugar.
And it doesn't end there! To take it to the next level, we created and continue to utilize a custom charcoal filtration system made from coconut husks that removes the bitter flavors and impurities that exist in other spirit brands.
We have the largest micro-distillery spirit portfolio in the nation, with 32 SKUs each marketed separately and independently successful.
One of the reasons we have so many key partnerships already established is our attractive incentives program. Our partners get:
We’ve successfully established multiple streams of revenue to ensure our continued success. These include:
In the wake of COVID-19, we were able to supply both our local community and hard-hit areas like New York, New Orleans, Puerto Rico and the Bahamas with our sanitizing products. In addition, we donated a large portion of each batch to local first responders, nonprofits, and vulnerable communities throughout the Tampa Bay area. This pivot allowed us to retain our staff and pay our bills.
The Florida CANE Distillery began in 2012 with 2 people, a 26 Gallon still, and a small storage facility. Over the years, we’ve added:
We’ve established growth, but we’re not stopping here! Our long-term goal is to have a state-wide network of small, interactive, consumer facing nano-distilleries, each featuring highly specialized, small-scale spirit production.
THE FLORIDA CANE DISTILLERY has financial statements ending December 31 2020. Our cash in hand is $101,000, as of July 2020. Over the three months prior, revenues averaged $80,000/month, cost of goods sold has averaged $51,200/month, and operational expenses have averaged $70,000/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 manufacture and market Florida CANE Vodka, El Encanto Rum, Tamiami Gin, and Red Drum Whiskey using local Florida produce, bottled and packaged in 100% American-made glass. Florida CANE products are essentially the best of Florida, distilled and packaged into a bottle. So naturally, we aim to become the go-to Florida souvenir. With 7 micro-distilleries all across Florida, established out-of-state contracts with the biggest retail chains in America, and a large e-commerce presence with the capability to sell on our own website direct to consumers, we’d be one step closer to introducing the superiority of craft spirits to the national market.
The Florida CANE Distillery, INC. was incorporated in the State of Florida in December 2014.
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 $174,000 in debt and $67,537 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 1 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 36 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
The Florida CANE Distillery, INC. cash in hand is $101,000, as of July 2020. Over the last three months, revenues have averaged $80,000/month, cost of goods sold has averaged $51,200/month, and operational expenses have averaged $70,000/month, for an average burn rate of $41,200 per month. Our intent is to be profitable in 1 months.
We no longer are incurring expenses for the facility uplift/build out. Build out was completed Q4 2020. Additional debt was taken on to increase Cash, Inventory, and Buy New Equipment. 1H 2020 Current Assets $264,000 (change from 2019 +164,292) Total Assets 1H 2020 $397,940 (change from '19 +272,540) 1H 2020 Total Liabilities $526,063 (change from 2019 +280,140)
6 Months following the raise our projected monthly expenses = $37,000, and projected monthly revenues = $94,000. These projections cannot be guaranteed.
We have access to short term capital with 12%-16% interest rates up to $260,000, access to high interest short term capital (35%-45%) up to $80,000.
There can be no assurance that the Company will meet our projections. There can be no assurance that the Company will be able to find sufficient demand for our product, that people think it’s a better option than a competing product, or that we will able to provide the service at a level that allows the Company to make a profit and still attract business.
Pat O'Brien is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Sarah Nelson is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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.
Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company’s value will be materially and adversely impacted. This could also impair the Company’s ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company. The Florida CANE Distillery holds a graphic and name trademark on 'Florida CANE', 'Key West Lemon and Lime', 'Miami Mango', and 'Sunshine Moonshine'. The domain names floridacane.com, cane-vodka.com, sunshinemoonshine.com, and tamiamigin.com are also owned by the company. Additionally, there are over 35 registered formulas with the US. Department of Treasury, Formulas Online Division, that are proprietary flavored spirit beverages.
Our ability to sell product is dependent on the outside government regulation such as the FDA (Food and Drug Administration), TTB (Alcohol and Tobacco Tax and Trade Bureau) and other relevant government laws and regulations. The laws and regulations concerning the selling of product may be subject to change and if they do then the selling of product may no longer be in the best interest of the Company. At such point the Company may no longer want to sell product and therefore your investment in the Company may be affected.
Our growth projections are based on an assumption that with an increased advertising and marketing budget our products will be able to gain traction in the marketplace at a faster rate than our current products have. It is possible that our new products will fail to gain market acceptance for any number of reasons. If the new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.
We face significant market competition. We will compete with larger, established companies who currently have products on the market and/or various respective product development programs. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or superior products than those developed by us. There can be no assurance that competitors will render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.
COVID was a temporary opportunity for our business that allowed us to reach more customers and expand our product offering to a new category. We are re-opening our distillery in October of 2020 with new processes and booking arrangements to ensure the safety of our staff and guests. Similarly we will be resuming Distilling classes in January of 2021. It is difficult to predict when visitors to Florida will return to pre-covid numbers but we do know that we are fielding constant requests via phone, social media, and walk-ups requesting us to reopen. Tampa is also expected to host the superbowl in February 2021. While COVID-19 presents new challenges for our business, it has also presented new opportunities.
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