Details
1 | $1M+ in lifetime revenue. |
2 | 25K+ customers, growing 22% year over year. |
3 | Sold in 50+ locations in Western North Carolina. |
4 | Mead is the next big craft beverage, with a new meadery opening every 3 days nationwide. |
5 | Opening Asheville's first taproom dedicated to serving mead. |
6 | Honeybee apiary with over 9 years experience. |
Over the past nine years, Wehrloom has grown from our walkout basement into a manufacturing facility and retail store where we harvest and package honey, produce a full line of skin care products, beeswax candles, and are a “winery” focusing on mead.
We realized that most customers come in with an assumption that mead is thick, sweet, and super high in alcohol content, but our meads are different. Dry, lightly carbonated and full of unique flavor combinations, we are able to offer a refreshing retreat. Upon hitting the shelves in spring of 2017, we found ourselves in a constant race to keep up with demand. With projected growth of almost 40% this year, we feel it’s the product to focus on and bring to market in downtown Asheville.
Honey is an expensive commodity. Brewers love to use it, but hate the cost. That's where being a beekeeper has a great value. We have access to honey that most don't. But what if you could add some of the purest mountain water to your honey and sell it for even more. At Wehrloom we're able to add 440% to the value of our most expensive raw material, honey, with a little fermentation magic and end up with a wonderful gluten-free adult beverage.
Wehrloom Honey and Meadery is bringing the first taproom dedicated to serving mead to downtown Asheville in 2020. With it’s thriving community, vibrant downtown, and easy access to the wonderful Southern Appalachians, we feel like it’s already home.
Most of the Funds will be used to scale production of our products. This will involve purchase of equipment, raw materials, and packaging to get us ready for increased sales. We'll also need to upfit our existing space and hire new employees.
Because our products appeal to both craft beer and cider drinkers we feel we can win market share from both of these growing categories. We feel our customers are aware of what they put in their bodies and are looking for a premium gluten-free beverage.
Well, we’re glad you asked. While it’s one of the world's oldest fermented beverages, we’re not planning on serving anything dated. Our take on Mead is something new, something refreshing. We’ve pushed the boundaries and created a group of beverages that blurs the lines between beer and wine. Our mead is closest in character to cider and shares its gluten-free qualities, but not as sweet, and with a wider range of flavors. Instead of fermenting apples, we're fermenting honey. Our meads tend to present as light on the palate with a distinctive nose and like the rest of our product line are made using the most wholesome, natural ingredients possible. We are able to offer a product that’s unique, yet approachable. One that has the ability to appeal to a wide range of customers, both beer lovers and wine connoisseurs. And most importantly, one that has patrons coming back for more.
These are the values that are important to us, that we’re not willing to budge on.
1. We want to retain control of the company and continue to push it in the direction we envisioned. It’s not that we don’t want ideas or feedback, we absolutely do. We’re passionate about Wehrloom and want to see it “bee” it’s best.
2. We need to pay our employees a living wage and treat them well. Everyone deserves an opportunity to thrive not just survive.
3. We will not use any artificial flavors or colorings. We take pride in offering a high quality products. From our experience it takes high quality ingredients to make high quality finished products. Even if it costs a little more and makes our margins a little smaller, it’s part of what our brand represents.
4. We feel it’s necessary to continue to support local beekeepers and ensure that our main ingredient, honey, comes from this region.
5. We will continue to support rural communities, like Robbinsville, and keep production of our products in these areas, providing jobs where they’re most needed.
6. We love nature and the environment. We have children and want them to have this beauty around them when they grow up. As such, we’re dedicated to keeping a check on waste production, recycling, reusing, and using clean energy whenever possible.
Imagine walking into our Asheville location. As you come in you realize the walls are lined with images of the forest. Colorful bee boxes support the bar tops and make up displays and shelving, giving a similar feel to our flagship Robbinsville location. We want you to have a small escape from the city and be able to sit back and enjoy a nice glass of mead in the woods with us.
We believe the best marketing is the kind that doesn’t feel like marketing, but makes you feel included. As such, part of our marketing strategy is to get customers excited about the creation of new and exciting flavors. We plan to invite all mug club members to sign up for a once a month mead making event at our Asheville location. We’ll bring some carboys and explore new flavor combination, and be there more as facilitators. We want the participants to have the final say. Who knows, maybe our next production mead will be born out of one of these events. Either way, most are going to come back and bring their friends to try the beverages they helped create.
Wehrloom Honey & Meadery has financial statements ending December 31 2019. Our cash in hand is $26,804, as of May 2019. Over the three months prior, revenues averaged $26,381/month, cost of goods sold has averaged $8,443/month, and operational expenses have averaged $6,438/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.
Overview
We're beekeepers, whose focus has shifted to making Mead. We maintain hundreds of hives of our own and support hundreds more through contract. We manufacture an entire line of skin care products. And last but certainly not least, we're accomplished mead makers. Making delicious beverages from the honey we collect is our passion.
Wehrloom - Asheville is just the first step in our growth plan. We see it as a way to move our business model beyond our small town of Robbinsville located in the mountains with a population of less than 10K and let it thrive in a much bigger venue, Asheville, with a population of over 100K and annual visitors upwards of 10M, but what about an even bigger stage? Atlanta, GA is next on our radar and what we learn in Asheville will be invaluable.
Milestones
Wehrloom LLC was incorporated in the State of North Carolina in March 2013.
Since then, we have:
Historical Results of Operations
Liquidity & Capital Resources
To-date, the company has been financed with $218,000 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 0 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 6 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
Wehrloom LLC cash in hand is $26,804, as of May 2019. Over the last three months, revenues have averaged $26,381/month, cost of goods sold has averaged $8,443/month, and operational expenses have averaged $6,438/month, for an average net margin of $11,500 per month. Our intent is to be profitable in 0 months.
Being a retail business we've been affected by the stay at home orders here in NC related to the Coronavirus. As travel restrictions are lightening up, we're slowly seeing traffic in our store return to a more normal level.
We expect that opening a storefront in Asheville will expose our brand and products to a larger number of new customers in our current market. We foresee this also having an affect not only on retail sales, but on our wholesale accounts and expect to see an increase there as well.
1 | We believe there's an advantage to being the first meadery to open a taproom in downtown Asheville. If we don't move quickly we feel a competitor could move into this prime territory resulting in more dilution of customers. |
2 | Mead is a novel concept for a large portion of the general population. Early adoption may prove to be more difficult for this product. |
3 | We feel that our production will need to grow to have enough product on hand to sell at the new location. This will require additional equipment and employees which we have planned. If sales really take off we'll need to reevaluate and scale accordingly. |
4 | Our products depend on access to local honey. As beekeepers we do our best to control the supply chain, but multiple years of adverse weather could affect one of our main ingredients. |
5 | We're betting that we can pull customers from all the great breweries located in downtown Asheville and get them to try something new. Our experience has shown that people like new experiences, but if this did not prove itself we'd be forced to spend a good amount of money on marketing and advertising. |
6 | We are subject to governmental regulations affecting our business. The production and distribution of alcohol is a business that is highly regulated at the federal, state and local levels. Our operations may be subject to more restrictive regulations and increased taxation than are those of non-alcohol related businesses. For example, the distribution and sale of mead requires various federal, state and local licenses, permits and approvals. If one or more regulatory authorities determines that we have not complied with applicable licensing or permitting regulations or have not maintained approvals necessary for us to conduct our business within their jurisdiction, our business and results of operations could be materially adversely affected. Similarly, the loss or revocation of any existing licenses, permits or approvals, or the failure to timely obtain any additional licenses, permits or approvals when required, could have a material adverse effect on our ability to conduct our business. In addition, if any taxes or fees imposed on our business by applicable regulatory authorities are increased, our profit margins could be negatively affected. |
7 | 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. |
8 | Jessica Wehr 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. |
Director | Occupation | Joined |
---|---|---|
Aron Wehr | Managing Partner @ Wehrloom LLC | 2013 |
Jessica wehr | 6th Grade Social Studies Teacher @ Graham County School System | 2013 |
Officer | Title | Joined |
---|---|---|
Aron Wehr | CEO | 2013 |
Jessica wehr | President | 2013 |
Holder | Securities Held | Voting Power |
---|---|---|
Jessica wehr | 92 Membership Interests | 92.0% |
Date | Amount | Security |
---|---|---|
01/2020 | $107,000 | Revenue Share |
02/2018 | $150,000 | Loan |
05/2013 | $68,000 | Loan |
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
FSA | 05/29/2013 | $68,000 | $10,220 | 1.375% | 05/29/2020 | Yes |
Mountain BizWorks | 02/01/2018 | $150,000 | $137,698 | 9.0% | 02/01/2028 | Yes |
$50,000 | 50% towards down payment on loan to fund the project
43.5% equipment purchases
6.5% towards Wefunder fee |
$107,000 | 41%: Purchasing equipment--fermenters and upgrading labeling machine.
30%: Raw materials (honey) and packaging (bottles, labels, caps).
7.5%: Hiring employees (manufacturing, mead makers).
7.5%: Marketing (ad spend and hosting events).
7.5%: Working capital/contingency planning
6.5%: Wefunder fee.
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The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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