Otherwise Brewing

Otherwise Brewing

Gluten-free beer made using a proprietary process and eco-friendly ingredients; 2x sales growth in 2022

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Security Type
Convertible Note
Min Investment
$100
Location
SAN RAFAEL, TX
Expected Close Date
July 17, 2023
Target Raise
$25.00K-$500.00K
No. Investors
140
Security Price
$1
Number of Employees
2
Cash
$63,557
Revenue
$203,378
Short Term Debt
$19,886
Cost of Goods
$116,163
Long Term Debt
$150,000
Net Income
$-59,385

Company Description

Why are there so few gluten-free breweries? Beer is by far the most popular alcoholic beverage in the world,ii however it traditionally contains gluten, and nearly one third of Americans try to avoid gluten.iii Despite this fact, the United States had only 19 gluten-free breweriesiv out of more than 9,500 total breweries in operation as of March 2022.vAaron Gervais and Stellar Cassidy, the co-founders of Otherwise Brewing, asked themselves this same question in late 2019—and within it, they found an attractive market opportunity. They found that lack of choice largely comes down to technical challenges: it is very difficult to make a gluten-free alcoholic beverage with the flavors that drinkers expect from beer. The two set out to solve these challenges by developing proprietary IP that is designed to enable Otherwise Brewing to brew gluten-free beers that taste, smell, look, and “feel” just like their gluten-containing counterparts while increasing yield. At the same time, their process uses eco-friendly grains, as it brews with grains such as oats and buckwheat that have low carbon footprintsvi vii compared to barleyviii and proso millet, which is drought resistantix and has a lower carbon footprint than the commonly used brewing grain wheat.xTheir timing could not have been better, as the COVID-19 pandemic helped accelerate consumers’ interests in making health conscious choices.xi Additionally, for the many health conscious alcoholic drinkers out there, the growth of spirits,xii hard seltzers,xiii wines,xiv and more, even non-alcoholic beer,xv are challenging “big beer’s” dominance.xvi xvii xviii xix Among niche segments, the gluten-free beer market is expected to grow nearly four times as fast as the broader beer market over the coming years.xx xxiStill, flavor is the most important criteria for most drinkers,xxii and Otherwise Brewing strives to excel in meeting flavor expectations while stripping away barley from its fermentation process. Since releasing its first batch of beer in 2021, the company has developed a loyal following in its home market of the San Francisco Bay Area. It has also won numerous awards for its beers, even when going toe-to-toe with gluten-containing competitors in the same category.xxiii Additionally, it has been named a semi-finalist in the 2022 Brewbound Pitch Slamxxiv and a finalist in the 2023 Food Tech Challengersxxv emerging brand competitions. To date, the company’s intrepid brewing philosophy and bold flavors have generated over $300,000 in sales and secured shelf placements with marquee retailers including Bevmo!, Total Wine & More, and Whole Foods.Aaron and Stellar bring complementary skills to the venture, including an extensive background in the beer industry, technical brewing know-how, and previous entrepreneurial, business administration, and marketing experience. They are also supported by an advisory board of successful beer industry veterans.Spurred on by their initial successes, the Otherwise team is raising funds to expand their sales and marketing operations, build brand awareness, and acquire a taproom location (bar and kitchen) from a third-party business. Otherwise Brewing’s long-term vision is to bring delicious gluten-free beer to as many drinkers as possible, nationwide and beyond, with the goal of making their brand the go-to choice for health-conscious beer drinkers everywhere.

Key Deal Facts

Gluten-free brewery that more than doubled sales in 2022 to over $203,000, Products sold in over 250 retail locations, including BevMo!, Total Wine & More, Whole Foods, and K&L Wine, Over 80% of wholesale clients are repeat customers; average same-store sales were up 51% in 2022, Won 8 beer awards, including a double gold medal at the 2022 Tasting Alliance World Beer Competitioni
Amount Raised : $89,493
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Security Description

A convertible security is a security that can be converted into another security, typically equity in the next round of financing.

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