Western Reserve Distillers

Western Reserve Distillers

A family-owned organic craft distillery

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Security Type
Secured Loan
Categories
Alcohol
Min Investment
$100
Location
Lakewood, OH
Offering Date
January 26, 2021
Expected Close Date
March 23, 2021
Target Raise
$75.00K-$300.00K
Deal Notes

Interest Rate: 10.00%

Payments: Monthly, disbursed to investors quarterly 

Maturity: 12 months interest-only; 48 months fully-amortizing 

Personal Guaranty: Kevin Thomas

Security Interest: Purchase money lien in equipment and spirits to be purchased

Company Description

Western Reserve Distillers is a family-owned organic craft distillery located in Lakewood, Ohio just a few minutes from downtown Cleveland. We produce a complete range of world-class organic spirits including vodka, gin, rum, Blanco, reposado, bourbon, rye whiskey, and wheat whiskey right here in the heart of North East Ohio. All of these products are a direct result of carefully crafted farmer partnerships with organic farmers in Ohio, Louisiana, and the Jalisco region of Mexico. We strive to develop direct partnerships with all of our farmer partners as this allows us to ensure that a larger percentage of the revenue from the sale of their crops remains with them to reinvest into sustainable agriculture practices.

In addition to our organic product line, we have worked with a select number of award-winning distilleries in Tennessee, Kentucky, and Indiana to hand-select barrels of whiskey that are very close to our mash bills that have already been aged. While this approach may seem a little counterintuitive, it does provide a number of key business benefits and is a very common approach with the major distilleries in Kentucky.

By selling pre-aged whiskey, we are able to better gauge consumer acceptance of different mash bills and the price points of those products in the market. We are also able to generate critical revenue to invest in building our own barrel-aged organic whiskey and agave spirit products and gain a better perspective of how much product will be required to meet consumer demand.

Use of Proceeds

  • Barrels of aged whiskey from Tennessee, Kentucky, and Indiana - $225,000
  • Raw materials for agave spirit barrel-aged program - $50,000
  • Honeycomb financing fees - $25,000

Management Team / Advisory Board Bios

Kevin Thomas
Kevin had a career in retail and foodservice, including food and beverage for Nestle which spanned roughly 25 years. Within that time he has worked in operations, marketing, innovation, sales & business development both domestically and abroad. In 2018, he stepped away from Nestle to dedicate his time 100% to Western Reserve Distillers.

Ann Thomas
Ann's career has been largely focused on marketing to the community and healthcare sector. She has held a variety of executive and field-based positions with the American Cancer Society, community hospitals, and regional oncology centers. She has also worked internationally while in Switzerland with the English-speaking Cancer Association.

Deal Notes

Interest Rate: 10.00%

Payments: Monthly, disbursed to investors quarterly 

Maturity: 12 months interest-only; 48 months fully-amortizing 

Personal Guaranty: Kevin Thomas

Security Interest: Purchase money lien in equipment and spirits to be purchased

Amount Raised : $0
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Security Description

Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the debt holder can seize the collateral, sell it, and use the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered as a form of security, which is why unsecured debt is considered a riskier investment than secured debt.

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