Local Choice

Local Choice

Boutique spirits and private-label brand management

Print
Security Type
Crowd Note
Categories
Food & Bev
Min Investment
$100
Location
Daniel Island, SC
Offering Date
June 22, 2018
Expected Close Date
August 20, 2018
Target Raise
$50.00K
Deal Notes
  • Security Type: Crowd Note
  • Round Size: Min: $50,000 Max: $1,070,000
  • Valuation Cap: $10 million
  • Discount: 20%
  • Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $10 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

The craft distilling industry has seen notable growth over the past several years. In 2016, sales were up 25% year over year.i Driving this growth has been an increase in consumer demand, a growing number of craft distilleries, and more favorable government laws and regulations regarding craft distilling. The spirits industry as a whole has also been on an upswing and has continually gained market share over beer for each of the past eight years. Created in 2010 by “Pixie” Paula Dezzutti Hewlette, Local Choice Spirits (LCS) helps celebrities and entrepreneurs build brands by creating custom boutique spirits. Paula has an extensive background in the spirits industry and leverages her connections and experience in creating, promoting, and managing spirit brands. The company emphasizes partnerships with celebrities in order to create private-label brands; some notable partnerships include The Legendary Hatfield & McCoy™ Family Brand Whiskey, Dwight Eubanks and his Eubanks Gin Collection, and Boosie Badazz’s Boosie Juice Vodka.

Key Deal Facts

Revenue up over 200% from 2014 through 2017
Existing private label deals with several celebrities and artists
CEO has more than a decade’s worth of experience in the spirits industry
Local Choice Spirits have collectively won more than 40 awards in the past five years

Use of Proceeds

LCS intends to use the proceeds from this raise to increase production, expand its product line, and further solidify its balance sheet. If the minimum amount of $50,000 is raised, LCS will allocate 93% of the funds to campaign marketing and related reimbursements. If the maximum amount of $1,070,000 is raised, 37% will be allocated to increasing its inventory, 16% for campaign marketing and related reimbursements, 9% for working capital, 9% for future wages, and 5% for new brand production. The company has discretion to alter the use of proceeds mentioned based upon prevailing market conditions and board approval.

Management Team / Advisory Board Bios

Paula Dezzutti Hewlette
Founder and CEO
Paula founded LCS at the end of 2010 after more than a decade of experience in the spirits industry. In addition to her role at LCS, Paula also serves on the Board of Directors for Terressentia Corporation, a company that creates customized spirits for large retail customers, individual brand owners, and other distilleries and brokers. Over the last several years, Paula has been featured in The Huffington Post, Yahoo Finance, Dow Jones Market Watch, Proof 66, Wine and Country Magazine, Whiskey Passion Magazine, and Entrepreneur Mind World. Paula has a background in business management and financial planning and graduated from The University of Connecticut.

Ryan Ekvall
Chief Operating Officer (COO)
Ryan joined LCS in 2014 to develop marketing content and a public relations strategy. Soon after his arrival, he was promoted to Director of Sales where he was responsible for launching Boosie Juice Vodka. He has since been promoted to COO, where he is now responsible for managing relationships with wholesale distributors and brand managers. Prior to joining LCS, Ryan served as a journalist for the Wisconsin Reporter, reporting on state and local government. Ryan has a BSc in Business Administration and Management, Financial Services from Columbia College.

Robyn Chapman
Marketing Director
Robyn joined LCS as Marketing Director after working for global companies like The Guardian News & Media and has a background in marketing, sales, and advertising. At LCS, Robyn is responsible for developing the website and promotional opportunities.

Randal Ekvall
Executive Brand Manager
Randal joined LCS as an Executive Brand Manager in 2015, where he is responsible for the planning and development of new brands. He is also responsible for getting brands certified, putting the finished packaging together, and helping bring a brand from inception to completion.

Remy EkvallOperations and Logistics Manager
Remy joined LCS in 2014 as Sales Manager after working at Terressentia Corporation as a sales representative. In 2015, he was promoted to Operations and Logistics Manager. In his current role, Remy is responsible for all aspects of logistics, including managing shipments, negotiating transportation pricing, and preparing the delivery of samples for special events. He is also responsible for overseeing the warehouse and all duties related to inventory control.

Addie Belasco
Executive Assistant
Addie works as an Executive Assistant at LCS, where she works on a variety of tasks that include administrative and clerical assistance. Her duties include scheduling meetings and events, making travel arrangements, and organizing daily calendars.

Rachyl Dezzutti
Social Media Director
Rachyl is in charge of managing the LCS social media platforms. She graduated from the University of Connecticut with a bachelor’s degree in Human Development and Family Studies and a Minor in Psychology.

Deal Notes

  • Security Type: Crowd Note
  • Round Size: Min: $50,000 Max: $1,070,000
  • Valuation Cap: $10 million
  • Discount: 20%
  • Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price paid per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price paid per share paid on a $10 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Amount Raised : $62,536
Reveal the Score by Voting
_
Additional ratings from other users are needed to determine a viable CrowdScore for this deal.
The "CrowdScore" for this deal is determined by user ratings and other factors using our proprietary algorithm.
The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
The value of the company compared to similar companies raising money from investors.
Valuation

Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

Research Reports

No reports have been submitted

Become a Reporter

0 Comments