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Van Cleave Dry Goods

Snack food, elevated by carefully curated ingredients and real flavor innovation

Van Cleave Dry Goods

Snack food, elevated by carefully curated ingredients and real flavor innovation

Frisco Texas
Main Street Retail Food B2C
VC Dry Goods currently specializes in gourmet beef jerky. What really separates us from the crowd is that we take a unique approach to the snacking occasion. We take into account the entire multisensory experience - the smell, the taste, the appearance - as you would expect with a gourmet meal. This gourmet mindset leads us to push the flavor envelope by using ingredients that you don’t typically find in beef jerky, or snacks in general, like smoked sea salt and fresh (not dried) ingredients.
Adam Van Cleave President & CEO @ Van Cleave Dry Goods
Last Funded August 2018!

$185,705
total funds raised

42
total investors

  • About
  • Updates 0
  • Reviews9
  • Ask a Question 7

Why you may want to support us...

1 114% wholesale growth YOY from 2016 to 2017, with 30% overall growth.
2 Sold in 200+ locations, including Total Wine & More, Brookshire's Grocery Company, United Supermarkets/Market Street, among others.
3 Distributed through UNFI, largest natural foods distributor in the nation. 
4 Approved and soon to be sold in the entire Albertsons Southern Division and Bashas grocery stores.
5 Meeting with Walmart, S.E. Grocers (Winn-Dixie/Bi-Lo), and Food Lion later this year. All three already expressing interest based on samples given.
6 Currently discussing licensing agreement with Valiant Comics to debut cobranded beef jerky with release of Bloodshot movie feat. Vin Diesel.

Why investors us

we've raised $185,705 since our founding
When I first met Adam and we discussed his products, I was skeptical. But when I tried it, I was blown away. I literally had never eaten something this spectacular! As I spent more time with Adam and understood his vision, it became clear to me this was way bigger than beef jerky. Its an approach to disrupt the entire snack category. Adam develops his products with a ruthless focus on the multi-sensorial aspects of the snack experience. He believes there should be much more to the snacking occasion. It should be savored, not rushed. He's disrupting beef jerky, and he'll win because this is literally the best jerky you will ever eat. And he plans to bring further innovation into this category, and others, like I’ve never seen before.
Rishi Daing
Head of Marketing - Tata Global Beverages, US; Former VP - Innovation at PepsiCo and CMO at Firestone & Robertson Distilling. Invested in VC Dry Goods.
www.linkedin.com/in/craigvomlehn Feel free to connect!
Craig Vom Lehn
on 07/24/2018
Private Equity portfolio company management, MBA, Strategy and Financial Analysis. Family man and dividend investor in Gilbert, AZ

Our team

Laura Jimenez
Creative Director
Guru of graphic design. Manages all packaging and POS designs.
Cole Yates
Sales Manager
Sales mastermind. Doesn't take no for an answer. Closes the deal.
John Van Cleave
CFO
30+ years of high level operational and financial experience.
Adam Van Cleave
President & CEO
Recovering attorney. Snack food visionary. I'm not from the snack food business, but I see that as an asset. I love bringing the flavors that are typically found in gourmet food to the snack category.
Carmen Van Cleave
Vice President
Excellent with operational and process management.

In the news

Frisco founder finds passion, launches innovative snack company - Launch DFW
Everyone has a favorite snack, and if you asked Adam Van Cleave, beef jerky would be his first pick every time. So it's no surprise that he developed his own snack company, Van Cleave Dry Goods, with a mission to produce the highest quality Angus beef jerky on the market, Genuine Craft Jerky.
March 7, 2018 @ launchdfw.com
Meet Adam Van Cleave of VC Dry Goods in Frisco
Today we'd like to introduce you to Adam Van Cleave. Thanks for sharing your story with us Adam. So, let's start at the beginning and we can move on from there. For as long as I can remember, I've always been interested in starting my own business, and being an entrepreneur.
October 18, 2017 @ voyagedallas.com

Downloads

VC Dry Goods Pitch Deck.pdf
Frisco Texas
main street retail food b2c

Genuinely delicious beef jerky, born in the farmers markets of Texas

In The Beginning... (i.e. 2014) 

We didn't have a storefront, so we had to think outside the box. We needed a place to make the goods, so we began working out of local commercial kitchens that we rented by the hour. Then, we needed place to sell the goods, so we joined several farmers markets throughout north Texas. We knew we were on to something big because we were selling out almost every weekend - our jerky was a hit!      

While our initial business model was great because we were able to start selling fast, it had its drawbacks. Primarily, the markets were seasonal and we weren't able to sell in a wholesale capacity because of the state licensing under which we were operating.  

To resolve the issues, we needed a copacker. By outsourcing our production, we would be able to sell wholesale so we wouldn't be dependent on seasonal markets. It took us a while to find the right copacker because our production methods are definitely not industry standard, but to us that is a point of pride. That's why our goods aren't industry standard. While other companies are using mystery meat, artificial preservatives, and low-quality dried ingredients, we only use high-quality Angus beef, fresh ingredients, and we cure our meat naturally so there's no need for artificial preservatives. We finally found a great company that was willing to work with our unconventional methods, and we had our wholesale launch at the end of 2015. We've been growing ever since.  

VC Dry Goods At-A-Glance

52-59%
Current Online Margins
23-39%
Current Wholesale Margins
200+
Current Retailers

Meat Snacks are the second largest category in the larger Salty Snack category, and its growing fast.

Test

Competitive Snapshot

No other brand has the flavor and quality that come standard with VC Dry Goods. Among our competitors, there are established companies  that have been in business a long time. However, their flavors are bland and generic, and their quality is not up to the standards of the modern consumer. There are also new companies that have their own unique selling proposition. Mainly, they have taken the approach that consumers were tired of tough jerky, which leads them to make soft jerky. Their quality and flavors are better than the large companies, but still fairly generic and only a small step in the right direction. Plus, many customers find the soft texture as mushy and unappealing. 

VC Dry Goods sees the problem as a quality and innovation issue. Our experience has shown that customers like a more traditional texture in jerky (cut with the grain of the meat, dry but not tough). What the consumer has been wanting is real, delicious flavor, as well as new and unique flavor ideas. Every brand has teriyaki, peppered, etc., with some exceptions. We create more innovative flavor profiles, and take a multisensory approach to creating our products. Simply put, it must look, smell, and taste absolutely delicious. We accomplish this by using high-quality Angus beef with fresh ingredients and spices more readily found in a gourmet meal.   

In our category, growth can be rapid because our wholesale customers have hundreds - if not thousands - of stores. Growing by 200% or 300% YOY is not unheard of. We have grown as fast as we can feasibly grow with the capital limitations that we have. However, we have several meetings later this year with large companies (Walmart, S.E. Grocers, Food Lion, among others). They have already been presented with samples, and they are interested. Aside from that, we have already secured the Albertsons Southern Division (167 stores) and Bashas (47 of their stores), for new product launches later this year. 

We have already had solid growth, but its about to accelerate.

Investor Q&A

Expand all
What does your company do?
VC Dry Goods currently specializes in gourmet beef jerky. What really separates us from the crowd is that we take a unique approach to the snacking occasion. We take into account the entire multisensory experience - the smell, the taste, the appearance - as you would expect with a gourmet meal. This gourmet mindset leads us to push the flavor envelope by using ingredients that you don’t typically find in beef jerky, or snacks in general, like smoked sea salt and fresh (not dried) ingredients.
Where will your company be in 5 years?
VC Dry Goods hope to be a national snack food brand, known for pushing the limits of flavor and innovation. We currently specialize in beef jerky, but that’s just the start. We hope to expand beyond that into different areas of the meat snack segment first, then into other snack categories where we can have a disruptive impact. We also hope to create a small production facility of our own so that we can get really creative with smaller batch/seasonal flavors, and impact the segment even further.
When did you launch?
We first launched in October 2014. That’s when we were in our first farmers market, which was the only way we were able to sell at the time. We couldn’t sell in a wholesale capacity because of our licensing. It wasn’t until December 2015 that we got our first finished batch from our copacker that we were finally able to start wholesale sales.
How many stores are you currently in?
Just over 200 retailers. Also, we expect to double that number because we are already approved to be sold in the entire Albertsons Southern Division (167 stores) and Bashas (45 stores). At this point, we are waiting on them to issue a PO, which will expect to happen soon. We are also in talks with our current retailers to get additional stores as well.
How big is the market?
The salty snack category has annual sales of $27.5B. Meat snacks account for 10% of that, or $2.7B. We started with meat snacks because we love meat snacks, and it was the segment where we felt we could have the greatest impact right off the bat. The category is seeing incredible growth, and we feel that the competition is going in the wrong direction. However, as we grow we plan to diversify into other areas of the salty snack category where we feel the VC Dry Goods brand can have a disruptive impact.
What do you understand about your business that others don't get?
We don’t strive to fit into the snack category. When we are creating a new flavor, we don’t look to what other snack brands have done as our inspiration. We know what our competitors are doing, and don’t get me wrong, but we’re not impressed. Our inspiration comes from the executive chefs on the cutting edge of gourmet food. When I sit down for a great meal that knocks my socks off, I take notes and try to find ways to incorporate elements of that into our products. The composition of each meal may change, but there are a few basic aspects that carry over from one meal to the next. Specifically, each chef carefully curates the ingredients of their meals, they also put a high level of care into them, and they undoubtedly take into consideration the multisensory aspect of the meal. Those aspects elevate the meal into something more than just a meal - it becomes an experience. That is what really motivates us at VC Dry Goods. We want to give people that feeling when they snack. There is value in providing a better snacking experience.
Can you elaborate on what you mean when you say there is a multisensory aspect to a meal or snack?
When we sit down to eat a meal or a snack, or really anything we put in our bodies, there is more going on than just putting it in our mouths and chewing. There is a visual aspect when you first see it. Your sense of smell comes into play when you first smell it. Then, once you put it into your mouth, it isn’t even as simple as just tasting it. Yes, your tastebuds tell you how something tastes, but you’re also taking into account the texture. In our busy lives, we skip over all that food foreplay most of the time. One area of food in which it is still expected is in gourmet food. Every chef will focus on every aspect of their food before it is served. They carefully curate the ingredients, they take time to ensure it is prepared properly, and they make sure it looks perfect when it is sent to your table. That is how you create a great experience. In contrast, with beef jerky, most of the time you have no idea what kind of meat was used. The ingredients are all dried or artificial. Liquid smoke is used in many cases. Many brands that don’t use artificial preservatives use sugar as a substitute, which is why a flavor that isn’t sweet can still have 9 or 10 grams of sugar per serving. The result is jerky that looks awful. It tastes pretty bland, if not downright bad. The texture is usually off also. Sometimes it is so tough, you have to chew on it for a while just to get any flavor. Other times, it is soft to the point of being mushy. Meat shouldn’t be mushy. And the smell. I challenge anyone to go into their grocery store, find a bag of jerky, open it and take a big whiff of the bag. Most jerky smells so bad that it’ll make you gag, or at least recoil a little. What other food would you eat if it smelled or looked bad? That’s usually the sign to throw something out. At VC Dry Goods, we take all of that into account with our multisensory approach. When you see our jerky, it looks like a nice piece of real meat. When you smell it, your mouth might start to water and it may beckon you to grab a piece. Once you finally take a bite, we feel like the flavor is out of this world - the kind of thing you want to tell all of your friends about, and our customers do. Whether that process happens in a couple seconds or much longer, that’s up to you and how you snack, but we think the experience is far superior to the competition. That doesn’t happen by accident. It’s hard work, and you can credit the multisensory approach that we take.
What keeps you up at night?
Right now, my main concern is capital to assist with cash flow. I remember getting our first large purchase order, which was about $25,000. I was excited, then immediately got nauseous because I had no idea where we would get the funding to fulfill the PO. In the end, we worked it out. However, we are growing and we are getting to the point where it will be much more difficult. For example, we just finished our vendor setup with Albertsons, and our initial PO (based on our estimates) will be around 40k-50k. That’s for 167 stores. When I do the math in my head for even larger customers that have 1000+ stores, it makes me worry that we may need to turn down business if we don’t have the capital we need when we get there - and I hate lost opportunities.
Does being from Texas help or hurt you?
When you think Texas, what comes to mind? Beef, or oil - but you don’t eat oil. Everyone knows Texas as THE beef state, yet there is no Texas-based national brand in the beef jerky space selling whole-muscle jerky. Epic is from Austin, TX, they sell ground meat bars mixed with various other ingredients, as well as other ground meat jerky, and they’re doing well. They were acquired by General Mills for over 100 million dollars. Whole-muscle jerky, like we currently sell, makes up the bulk of the jerky market, and is overdue for a competitor from the Lone Star State - and we don't think we're just any company stamping TX on our bag for bragging rights. Our story is authentic. We’re based in Texas because we live in Texas. We started out buying beef from Texas ranchers, and created jerky with flavor as big as the Lone Star State itself, which we sold in Texas farmers markets to get started. As we grow, we plan to utilize our authentic Texas roots more and more in our branding, and we definitely see it as an asset.

Financials

Van Cleave Dry Goods has financial statements ending December 31 2018. Our cash in hand is $35,323, as of December 2018. Over the three months prior, revenues averaged $32,003.97/month, cost of goods sold has averaged $6,173.68/month, and operational expenses have averaged $9,945.63/month.

At a Glance

January 1 to December 31
$168,855 +55%
Revenue
$21,660
Net Profit
$19,433 +54%
Short Term Debt
$58,595
Raised in 2018
$35,323
Cash on Hand
Income
Balance
Narrative
A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money?

It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the Cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re-investing potential profits to maximize growth over 20 years.
Net Margin:
13%
Gross Margin:
142%
Return on Assets:
22%
Earnings per Share:
$0.00
Revenue per Employee:
$168,855
Cash to Assets:
35%
Revenue to Receivables:
292%
Debt Ratio:
47%

Risks

1

There is a risk with regard to the beef market and the supply of other ingredients. Beef prices fluctuate, and may have an impact on profitability. We plan to minimize this risk with proper forecasting. However, market factors that are beyond our control may lead to increased volatility and unpredictability.

2

The meat snack segment, in which Van Cleave Dry Goods currently operates, is a highly competitive market, where competition risks are significant. To succeed, Van Cleave Dry Goods must be able to respond quickly to changes in consumer preferences. Van Cleave Dry Goods will work to create products that anticipate market shifts and consumer demand.
3

Projections provided by Van Cleave Dry Goods, while based upon existing or expected relationships, are wholly speculative. Van Cleave Dry Goods does not warrant and makes no assurances or guarantees that projections will be realized either in timing, magnitude or duration. Actual events will influence management's financial decisions regarding allocation of monies raised in this offering.
4

Van Cleave Dry Goods maintains a significant amount of product liability insurance. While no claims have been made or currently exists against the company, Van Cleave Dry Goods is at risk of product liability suits being levied. Such suits could have a materially negative impact on the future viability of Van Cleave Dry Goods.
5

Van Cleave Dry Goods' revenue is highly dependent on direct consumer sales and sales to retailers. Global and/or national economic disruptions such as a recession, terrorist attack, natural disaster, etc. may severely impact Van Cleave Dry Goods' revenue.
6

Beef diseases that could cause panic in consumers, like mad cow disease in the 90s and early 2000s. Such an outbreak in the beef market would cause sales to drop out of consumer fear.
7

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.
8

Carmen Van Cleave, Laura Jimenez, and John Van Cleave are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
9

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.
10

The company currently has more liabilities than assets.  If the company closes down now, it is unlikely that any capital will be returned to investors.

Details

The Board of Directors

Director Occupation Joined
Adam Van Cleave Van Cleave Dry Goods LLC @ Van Cleave Dry Goods LLC 2014

Officers

Officer Title Joined
John Van Cleave CFO   2017
Laura Jimenez Creative Director 2014
Carmen Van Cleave Vice President   2014
Adam Van Cleave President   CEO   2014

Voting Power

Holder Securities Held Voting Power
Adam Van Cleave 3,350,000 Class A Units 33.5%
Carmen Van Cleave 3,350,000 Class A Units 33.5%

Past Equity Fundraises

Date Amount Security
08/2018 $58,595 SAFE
10/2017 $46,610 Loan
06/2017 $30,000 Priced Round
04/2015 $50,500 Priced Round

Outstanding Debts

Lender Issued Amount Oustanding Interest Maturity Current?
Funding Cirlce 10/03/2017 $46,610 $61,082 12.69% 10/03/2022 Yes

Related Party Transactions

NameJohn Van Cleave
Amount Invested$27,000
Transaction typePriced Round
Issued04/06/2015
RelationshipFather

We first offered $3000 for 1% ownership of the company (100,000 Class A units). When he offered to purchase 10% of the company, we negotiated the price to $2700 for 1% ownership. He purchased the 10% (1,000,000 Class A units) for $27,000.

 
NameAlberto Banales
Amount Invested$7,500
Transaction typePriced Round
Issued04/07/2015
RelationshipFriend

Alberto paid $7500 for 2% ownership of the company (200,000 Class A units).

 
NameHarold and Laura Jimenez
Amount Invested$4,000
Transaction typePriced Round
Issued04/06/2015
RelationshipBrother-in-law and Sister-in-law

Harold and Laura paid $4,000 in exchange for 2% ownership of the company (200,000 Class A units).

 
NameJanet Van Cleave
Amount Invested$12,000
Transaction typePriced Round
Issued04/06/2015
RelationshipMother

We offered $3000 for 1% ownership of the company (100,000 Class A units). She purchased 4% of the company (400,000 Class A units) for $12,000 total.

 

Use of Funds

$50,000 25% -- Get printed bags and boxes with our branding 25% -- Act on our ecommerce strategy 25% -- Develop two new products to be released this year  20% -- Working capital 5% -- Wefunder Intermediary fee

$350,000 10% -- Get printed bags and boxes with our branding 20% -- Act on our ecommerce strategy 20% -- Launch 3-4 new lines of products (Smokehouse Originals, Brisket Bars, Brisket Nuggets & Vegan line) 25% -- Hire 1-2 reps to provide better support to our wholesale customers 20% -- Working capital 5% -- Wefunder Intermediary fee

Capital Structure

Class of Security Securities
(or Amount)
Authorized		 Securities
(or Amount)
Outstanding		 Voting
Rights
Class A Units 10,000,000 10,000,000 Yes

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.




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