introduction
At Damn Right Cocktails we aim to supply one of the world’s most authentic, high-quality Tequila RTDs to the U.S.
Our USDA certified organic, 100% de Agave Tequila RTD is produced in Jalisco, Mexico, then imported into the United States for distribution.
We work with respected distributors across ten states to supply to retailers including, but not limited to, Costco, Total Wine & More and BevMax.
problem
From my time as a bartender, I noticed something was missing in the alcohol industry: there were no spirit brands made for the modern woman. More specifically, no organic tequila based RTDs that tasted great, had a premium, high-quality composition with a brand identity that was truly bold.
We believe no brand in the market successfully captured what the metropolitan woman wants in a spirit product: a portable, premium cocktail that looks great in or out of the bar.
solution
Damn Right Cocktails is trying to create exactly what has been missing in the spirits industry: one of the world’s first USDA certified organic, 100% de Agave Tequila Ready-to-Drink (RTD) Cocktails that has a bold female brand identity with a modern mission.
As one of the youngest women to launch a Tequila RTD, it is our CEO’s mission to pave the way for other underrepresented groups in the spirits world by encouraging them to disrupt the market with innovative products like her own.
When you drink Damn Right, you’re also Doing Right. The team has committed up to 5% of their profits to programs and charities that support education equality.
These margaritas are made with only natural and organic ingredients and are just 110 to 130 calories per can! Damn Right’s original flavor, Devil of a Lime, is an award-winning twist on a classic skinny lime margarita. This flavor is “highly recommended” by industry veterans who describe the drink as “A tangy, dry and refreshing seltzer with Margarita vibes.”
Shortly after the launch of the lime, they introduced Beverage Testing Institute’s 2022 Best Flavored Spirits-Based Hard Seltzer, Son of a Basil, which is Damn Right’s unique version of a strawberry margarita with a hint of basil. Their Son of a Basil has been described as “a fruity, light, crushable Tequila Soda-like seltzer with both tropical and orchard fruit vibes.”
success to date
- Pepperdine's 2022 Most Fundable Companies
- 40+ doors across 6 markets
- 122% average MOM growth since launch
- 3,173 cases sold since launch
- 33% average reorder rate among independent retailers
- Major retailers: BevMax (National), Costco (CO), Liquor N’ More (MA), Liquor Depot (TX), Total Wine & More (TX)
- Partnerships: Blenheim Pickwick Venture Partners, Speakeasy Wine & Spirits, Total Wine & More, Drizly
- Trademark #90297950
“My goal is always to provide a great tasting drink, but more importantly, inspire the underdog to challenge the status quo because most industries today need disruption.”
business model
Our business model is Business to Business to Consumer. Because alcohol cannot be sold directly to consumers, the spirits industry has a three-tier system. We, along with every alcohol supplier in the United States, sell our products through a distributor state by state. We work directly with our distributors to sell to independent retailers, chain stores, restaurants, bars, and other on-premise locations.
We plan to continue to build strong relationships with not only our distributors, but also our retailers by providing support through in store tastings and incentive programs.
market
The pandemic witnessed an RTD boom as consumers sought convenient, on-the-go drinking solutions due to lockdowns. The growth of RTDs has only continued until today. RTD beverages continue to be one of the fastest-growing alcohol beverage categories.
While malt-based RTD sales are slowing among products like White Claw and Truly, spirit-based, high-quality products with real ingredients, flavors and taste are on a rapid rise in growth in the market.
Spirit-based RTDs grew by 53% in 2021 and reached a value of $4.8B USD in 2022. This volume is planned to continue at a CAGR of 33% in the US by 2025.
According to a study done by the Distilled Spirits Council, 86% of alcohol buyers (RTD drinkers and non-RTD drinkers) agree that spirits-based RTDs need to be more accessible. Consumers want premiumization and better-for-you options; they want a product like Damn Right but they cannot find it because it’s not widely distributed.
More importantly for us, we believe no one is particularly dominant in the Tequila RTD market – and therefore a great opportunity to grab market share and potentially become dominant. That is what we aim to do over the next year to 3 years: become widely distributed and one of the most dominant players in the tequila RTD market.
press
- Beer Alien
Damn Right Cocktails Releases the First Organic 100% de Agave Tequila Ready To Drink Cocktails - Boulder Weekly
Margaritas on the go - Tastings
Best Of Year Other Alcoholic Beverages for 2022 - Pepperdine Graziadio Business School
2022 Most Fundable Companies - BevNet
Devil of a Lime (Lime Margarita) | Damn Right Cocktails - The Heights
Fitzpatrick Serves Up Specialty Beverages With Damn Right CocktailsFitzpatrick Serves Up Specialty Beverages With Damn Right Cocktails
team
Our founders actually give a damn – not just about Tequila and making great cocktails, but about people too.
They wanted to find a way to use what talents they have for good. Right away, they’re using their background in the Tequila industry and bartending knowledge to make a delicious drink that’s more than something to sip on; a drink that would be better for you and just a bit better for the world. Now that they've started doing what's Damn Right, they're not going to stop!
Use of Proceeds
If the offering's maximum amount of $255,000 is raised:
Use | Value | % of Proceeds |
---|---|---|
Production & Cost of Goods | $80,505 | 31.6% |
Sales Team | $50,000 | 19.6% |
Office & Business Expenses | $10,000 | 3.9% |
Shipping & Warhousing | $13,000 | 5.1% |
Marketing & Advertising | $70,000 | 27.5% |
Distributor Fees | $8,000 | 3.1% |
Incentive Programs | $8,000 | 3.1% |
Travel/Market Visits | $3,000 | 1.2% |
Intermediary fees | $12,495 | 4.9% |
Terms
This number includes all funds raised by the Company in this round on Netcapital. This is an offering of Common Units, under registration exemption 4(a)(6), in D. R. Cocktails LLC dba Damn Right Cocktails. This offering must reach its target of at least $10,000 by its offering deadline of October 31, 2023 at 11:59pm ET. If this offering does not reach its target by the offering deadline, then your money will be refunded.
If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:
Financials
Damn Right Cocktails’ official name is D. R. Cocktails LLC, so that’s the name that appears in the statements below.
These financial statements have been reviewed by an independent Certified Public Accountant.
SEC Filings
The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.
We’re also required to share links to each of the SEC filings related to this offering with investors.
Understand the Risks
Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.
Neither Netcapital nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.
The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
More Info
Updates
- Nov 8, 2024Hello Damn Right Cocktails investors! Please...
- Jul 24, 2024Hello Damn Right Cocktails investors! Please...
- Mar 26, 2024Hello Damn Right Cocktails Investors! Please...
- Nov 1, 2023Primary offering finalized, sellingunits
- Sep 11, 2023Hi Damn Right followers and supporters! As we...
- Jul 18, 2023Damn Right Cocktails community: Thank you so...
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