Company Description
When was the last time you ate ice cream? Well, if you’re anything like the average American, then your answer is probably within the past week—or even within the past day. According to a study by the International Dairy Foods Association (IDFA), 73% of ice cream eaters consume the product at least once per week, with the average American eating approximately 20 pounds of ice cream every year. To fulfill this demand, ice cream makers churn out 1.38 billion gallons annually,vii which equates to nearly 2,000 Olympic-sized swimming pools.viii In terms of dollars, the market opportunity for ice cream production was valued at $10+ billion in 2022.ix However, some of the biggest brands in the industry use low-quality and artificial ingredients in their manufacturing process.x As Americans are adopting clean eating habits,xi which consist of eating foods as close to their natural state as possible with minimal, if any, chemical additives or preservatives,xii ingredient control is an opportunity for premium brands. Additionally, sustainable eating is a top priority among American consumers, meaning premium brands that focus on ingredient control have an opportunity to capitalize on this macro trend.xiiiLick Honest Ice Creams (Lick Ice Creams or Lick) is an Austin-based ice cream company that produces artisanal, locally-sourced, and Texas-inspired ice creams, which have made it a Texas-favoritexiv xv xvi and garnered it national recognition.xvii xviii xix Since opening its first “Scoop Shop” in 2011, the Company reports customers have flocked to its eight physical locations across four Texas cities (Austin, San Antonio, College Station, and Houston), which collectively fulfill hundreds of thousands of orders, or an estimated 1 million ice cream scoops (one half cup of ice cream) per year. Its ice cream flavors can also be found within major grocery retailers at select Whole Foodsxx and Central Marketxxi locations within Texas.In the last three years, Lick has opened four new locations, with one recently opening in Century Square at College Station, Texas less than one year ago and another that opened at Braes Heights in Houston, Texas in July 2023. The company plans to continue its expansion in the Houston market with two additional locations—one planned to open in 2023 and another is slated for 2024. To help fuel this growth, the company is raising up to $1,235,000 in capital, a majority of which is expected to be used to develop these new locations.
Key Deal Facts
Ethically-sourced, artisanal ice cream brand, which has reportedly served over one million orders at its eight physical locations across four Texas cities since 2018, Per the company, same store sales increased by an average of 46% from 2021 to 2022 across the five of their physical locations that were open during the period, Generated over $3.8 million in revenue in 2022, an increase of 35% year-over-year, Featured as one of the best ice cream shops in Austin, Texasi ii iii and recognized nationally by Food & Wine,iv the Food Network,v and Forbesvi
