New World Spirits-Intro 2016

New World Spirits 2016 - Private & Confidential

The Original Latin Spirit

This confidential document may not be reproduced or distributed without the express written consent of New World Spirits. Solbeso® is a registered trademark of New World Spirits Inc.

This document contains forward looking statements and is intended for the correct audience only. The creators of this document assume no liability for omissions or inaccurate information. The document does not offer any guarantees of accurate legal, tax, and regulatory advice or counsel. Readers are obligated to know and understand all legal, and regulatory issues in their own state and locality.

Confidential Information© 2016 New World Spirits,Inc. All rights reserved.

For 3,000 years, the Incas, Mayas, and Aztecs drank cacao beverages for energy and confidence in battle and more amorous conquests.

Solbeso is the modern interpretation of this ancient beverage, known as The Drink of the Immortals. Sustainably sourced from remote regions across Latin America, Solbeso gives you the energy to conquer the night.


\

Drink of the Immortals

Live Forever Tonight

WHAT IS IT Solbeso is the original Latin Spirit, inspired by the Drink of the Immortals and 3,000 years of New World history.

WHY DO I DRINK IT Solbeso gives you the energy to conquer the night.

HOW DO I DRINK IT Enjoyed on the rocks or as a chilled shot…a great way to start an immortal evening.

SOURCE OF VOLUME Premium tequila: Chilled shots, Caribbean-style margaritas.

SPECIFICATIONS Every bottle of Solbeso contains the fruit from roughly 200 pods. This fruit is then “kissed by the sun” in an open-air fermentation process and then slow-cooked to achieve the sublime flavor of Solbeso.

750ML (US) 40% ABV /80proof

TTB: Spirit distilled from cacao (Distilled Spirit Speciality)

No chocolate is harmed in the making of Solbeso

TASTING NOTES Bright floral open Creamy citrus mouthfeel Smooth caramel finish

Solbeso can be enjoyed in cocktails such as this legendary combination of Latin America’s most popular flavors.

1.5oz Solbeso No.1 0.75oz Fresh Lemon Juice 0.75oz Cointreau 1oz Coconut milk Add ingredients to an ice-filled shaker and shake. Pour over ice-filled rocks glass. Garnish with lime or mint

Coco Real

Latin SpiritThe Original

Rick Haythornthwaite Global Chairman MASTERCARD

Patrick Finn Mng Partner, FINN Capital, Fmr. Mng Director DIAGEO

Bill Davis Fmr. board-director GREEN MOUNTAIN COFFEE

Mike Clarke CEO, TREASURY WINES, Previously Kraft Foods, Coca Cola.


Thomas Aabo Founder

Thomas Higbee Founder

Kris Sirchio CEO, North American Breweries. fmr. EVP, Global CMO launching break-through brands.

Chris Burggraeve Fmr. CMO, ABInBev Global marketing lead responsible for several new products at the world’s largest brewer.

Mauro Pennella Fmr. VP, Innovations & M&A, DIAGEO Senior business development strategist (ex. Zwack, Zacapa)

Rob Malcolm Fmr. President & CMO DIAGEO Responsible for global marketing of the entire Diageo portfolio.

Wilco Faessen Mng Dir, Barclays Consumer Co-Founder, Whistlepig,

Tunc Cerrahoglu Fmr. President, ABInBev International

Gabriel Roig President Roig Cacao SA

New World Spirits was conceived to bring ground-breaking brands to market in new and innovative ways. 25 years of spirits marketing & innovation meets sales and operational expertise to form an ambitious founding team.

New World

Fernando Crespo Cacao Expert / Distiller

Dave Pickerell Master Distiller

Rafo Urbina Master Distiller

Clay Gordon Cacao Expert

The New World Spirits team of investors and advisors include influential operators with expertise in beverages, finance and entrepreneurship. The team and supporting platform was purpose-built for innovating and building global brands.

TEAM

Spirits INVESTORS & ADVISORS

Bob Jeffrey CEO J. Walter Thompson

Sales Strategy

Trade PropositionSolbeso has a strong proposition to the trade:- Incremental volume that does

not cannibalize existing portfolio brands

- Strong appeal and evangelism with America’s fastest growing consumer group

- “Firestarter” growth potential that generates news/buzz

Sales Partner: SerrallesSeralles is the leading producer of rums from Puerto Rico, and a successful commercial sales organization in the US, with 30 full-time sales people, that give us the clout and scale to drive distribution with our top distributors including Empire NY, Southern and Young’s Market.

Core MarketsInitial focused sales approach targeting markets that over-index on upscale Latin bars/culture/consumers: - South Florida - New York- Southern California

Accounts: Upscale LatinLatin bars and bartenders are the fasting growing trade group. Solbeso has developed programming specifically targeting this group to laud their role as industry thought-leaders.

1. 2. 3. 4.

Marketing Strategy

Audience: Upscale LatinAs the Original Latin Spirit, Solbeso connects to a pan-Latin audience in ways other brands cannot, combining 3,000 years of history with the legendary benefit of cacao, to engage a core group of evangelists deeply and organically in the brand.

Noches InmortalesOur marketing campaign, Noches Inmortales (Live Forever Tonight) supports a volume-driving chilled shot strategy that encourages memorable evenings.This campaign has tested extremely well with Latin audiences and will be used to create community online.

Media: UnivisionSolbeso is partnering with the leading hispanic media platform in the U.S., giving us access to Latin talent, programming, channels and events to drive awareness of Solbeso.Importantly, we plan to leverage our Univision partnership with the trade through event access.

Brand: Heritage + EnergySolbeso will leverage its heritage as the Drink of the Immortals across all consumer touchpoints — packaging, events, digital — convincing consumers that “Solbeso gives you the energy to conquer the night.”

1. 2. 3. 4.


2012-2014 2015 2016-2017

Focus Product Creation Market Trials Sales + Scale

GoalsScalable, redundant supply chain

Solbeso Protocol + Approvals Brand + Packaging

Experienced Team + Backers

Market Testing in NYC Distribution Trials in CA, CT, TN, UK

+100 Active Accounts 1,500 Cases Sold (2014-15)

Brand Building +600 Active Accounts

300 Cases Sold / Month Solbeso ‘Anejo’ Launch

Revenues NA $200,000 $1,500,000

Sales & Distribution $500,000 $500,000 $1,000,000

Brand Building $310,000 $250,000 $800,000

Product (R&D / Supply) $870,000 $150,000 $200,000

G&A $730,000 $200,000 $480,000

Total Investment $2,310,000 $1,100,000 $2,480,000

Building a brand in the spirits industry carries inherent risk due the capital intensive nature unique to spirits sales coupled with the legal strictures in the US of the “Three Tier System.” New World Spirits mitigates risk by deploying proven models in focused geographies against a clearly defined demographic. We remove production and scale risk by diversifying materials sourcing and by owning the means of production. This allows for vertical integration of our business from branch to bottle.

The support of a world class backing team, a redundant, scalable supply chain and a keen focus on building market success before scale will drive our activities towards establishing an entirely new class of spirits.

Key Performance Indicators

ACTIVE ACCOUNTS Sales Performance. Measured by the number of accounts that have ordered in the last 60 days

ACCOUNT VELOCITY Brand Performance. Measured by sales velocity in an aggregation of accounts. Solbeso targets a steady state performance of 6 bottles/month.

BRAND PERFORMANCE Brand Buzz Measured by purchase interest amongst our core demographic using social media metrics.

OTHER Cocktail menu placements Media hits Online inquiries

Business Overview


For global spirits companies today, innovation means acquisition, with companies often preferring to buy versus build to grow portfolios. M&A interest is often based on identifying brands with a strong reputation where the acquirer can drive down cost and increase distribution through network efficiencies and scale. New World Spirits manages its business to key performance indicators accepted within the industry while actively maintaining senior level industry relationships for strategic partnership purposes.

Market ConditionsBrand Acquirer Timing ValuationSt-Germain Bacardi 6 Years $120M - 5x Revs

Domaine de Canton Heaven Hill 8 Years $40M - 6x Revs

Chambord Brown-Forman 24 Years $255M - 16.3x Revs

Skinny Girl Beam 3 Years $90M - 11.2x Revs

Hpnotiq Heaven Hill 2 Years $60M - 12x Revs

Svedka Constellation 9 Years $349M - 8x Revs

Leblon Bacardi 4 Years $12M (30%) - 20x Revs

Grey Goose Bacardi 7 Years $2.2B - 9.7x Revs

42 Below Bacardi 3 Years $91M - 13x Revs

Cabo Wabo Campari 9 Years $91M - 9.6x Revs


Proforma 2016 2017 2018 2019 2020

Revenues $183,653 $1,012,081 $3,079,071 $6,511,761 $10,862,271

Active Accounts 326 1,116 3,073 5,638 8,698

COGS $84,720 $391,103 $1,164,200 $2,311,526 $3,768,959

A&P $133,779 $715,952 $1,395,253 $2,385,664 $3,163,502

Net Brand Contribution ($34,846) ($94,974) $519,618 $1,814,571 $3,929,810

Management Commentary Projections based on two year market trials and performance commitments of direct sales partners. The objective of this financial plan is to establish a ‘firestarter’ brand, attracting a core group of evangelists to grow the business organically reducing the need for continual promotion. There remain significant opportunity for international growth, through commercial partnerships, and strategic engagements.

Spring 2016OpportunityInvesting for Growth Since inception, New World Spirits has invested $3.5M to build infrastructure, establish the brand proposition, and define the route to market. The Company is now offering equity to finance three core activities: Sales growth, brand building, and select line extensions through aging and limited edition single-origin expressions. Sales growth includes investing in a commercial partner; providing strong incentives to our distributors; and, adequate field staffing for training and education. Brand building activities will target our core audience primarily through tastings, highly-targeted events and social media. The goal is to generate sustainable organic growth.

2016

Live

Tom Higbee Thomas Aabo

Founders [email protected]

Direct: 917.744.2937

Casa Solbeso 268 East 7th Street, Suite #4,

NY, NY 10009 www.solbeso.com

ForeverTonight

http://www.solbeso.com

The Discovery

Through exploration and innovation, New World Spirits creates the world’s first scalable fresh cacao fruit supply chain.On an expedition to Tingo Maria in Northern Peru, award-winning spirits innovator, Tom Higbee, discovered a new way to think about and use cacao fruit.

Realizing cacao farmers discard the bulk of the fruit they harvest — only the seeds are commercialized to make chocolate — Mr. Higbee set out to to innovate and improve the productivity of cacao farmers across Latin America.

Applying two decades of spirits innovations, Mr. Higbee built a rudimentary fermentation and distillation facility in the jungles of Peru to produce the world’s first spirit distilled from cacao fruit.

New World Spirits now harvests and produces Solbeso with local partners in several Latin American countries, using specific varietals of the delicate fresh cacao fruit.

Since cacao fruit has never been harvested commercially, the Company has developed several proprietary techniques for collecting fresh fruit juice without disrupting the cacao bean harvest, the main source of income for cacao farmers.

Supporting the local community remains a core mission for New World Spirits: Local partners gain expertise and access to new technology -- and much needed additional income -- in support of New World Spirits operations.

New World Spirits Solbeso Overview - Summer 2014!12New World Spirits - Confidential Creation of Solbeso

Establishing infrastructure to capture the fresh cacao fruit. Naranjal, Ecuador

CACAODiscovering

Source: xocoatl.org

Godsof the

The delicious, citrusy cacao pulp is the raw-material for Solbeso

Hidden in the cacao pulp lies the source of all chocolate: the cacao seed, commonly known as cocoa beans

The cacao husk can be used as bio-fuel to generate sustainable energy

Cacao is rich in anti-oxidants and natural stimulants

FOOD

Cacao is appreciated the world over for its role in making chocolate: The delicate fruit is a by-product of this process.

Long before the advent of chocolate, the peoples of Meso-america fermented the fruit into an alcoholic beverage known as the Drink of the Immortals. The elite of society believed cacao had mythical properties that improved their performance in battle and more amorous conquests.

The botanist Carl Lineaus named this prized fruit Theobroma Cacao - The Food of the Gods - for its positive effects on health and happiness.

http://xocoatl.org

&!14New World Spirits - Confidential Creation of Solbeso

WHAT’S IN A NAMECalled colibri in Spanish, the hummingbird is the spirit animal of cacao and represents energy, renewal and a thirst for life. In Aztec culture, hummingbirds represented the Sun God and the God of War and was believe to give vigor and skills in battle to the wearer. The Solbeso Colibri proudly adorns every bottle.

EL COLIBRI

D e s i g n Inspiration

Solbeso means Kissed by the Sun —a portmanteau of the Spanish words Sol (sun) and Beso (kiss). Aztec rulers believed cacao received potency from the Sun God Huitzilopochtli. They enacted elaborate rituals for the God to bestow the mythical properties of cacao upon them.

- feminine Long, slender and elegant neck with curved shoulders.

- masculine Broad, solid square

footprint.

- surprising A unique paint technique sets the bottle and

liquid ‘on fire’.

- trusted Comfortable hand-feel for

bartenders.

- mysterious The Solbeso Colibri graces the base and the top of the bottle

- quality Super-flint glass ensures ultra-premium clarity, quality and consistency

Real Vitality

CACAO - THE ORIGINAL SUPER-FRUIT

As the only spirit distilled from fresh cacao fruit, Solbeso contains theobromine, a natural stimulant that evokes a sense of well-being. Theobromine is among the many reasons we find chocolate so addictively delicious.

Theobromine Caffeine

gentle mild effect

very slow onset long lasting

50% in bloodstream after 6 to 10 hrs increases feeling of well being

mild antidepressant gentle, smooth, sensual stimulation

stimulates cardiovascular system stimulates muscular system

mild effect on central nervous system almost no one is allergic

not addictive no withdrawal symptoms

mild diuretic stimulates the kidneys

intense strong effect fast acting

rapid dissipation 50% in bloodstream after 2 to 5 hrs

increases alertness increases emotional stress

jagged, nervous stimulation stimulates cardiovascular system

stimulates respiratory system strong effect on central nervous system

many people allergic physically addictive

many proven withdrawal symptoms extreme diuretic

requires large intake of fluids to balance diuretic effect

Source: xocoatl.org

...naturallyvs

Montezuma, Aztec Emperor, enjoying a vat of fermenting cacao, responsibly

!16New World Spirits - Confidential Creation of Solbeso

New Solbeso distillery at the source Juanjui, Peru

Early construction at Rancho Colibri Solbeso distillery Naranjal, Ecuador

A New Spirit

The creation of Solbeso marries Old World tradition with New World innovation.

Through research, expert insights and years of experimentation, the New World Sprits team has an encyclopedic knowledge of what it takes to make the world’s first and only cacao fruit spirit.

Working with the best minds in the industry, New World Spirits has defined proprietary practices in cacao fruit capture, fermentation and distillation resulting in the Solbeso Protocol, a blue-print to ensure quality, consistency and superior taste.

Solbeso is distilled in custom-built copper pot-and-column alembics - not unlike those used for cognac distillation. The smooth character and flavor is furthered with specialty yeasts, a unique distillation process and slow-cooking technique that takes time, but ensures the highest quality.

Comes toLife

New World Spirits-Intro 2016

Documents

Transcript of New World Spirits-Intro 2016