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.”
– Gabby Fitzpatrick
CEO, Damn Right Cocktails

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.

NielsenIQ reported Tequila-based RTDs saw the highest growth at 138 percent for the 52-week period ending October 2, 2021. Tequila has been one of the fastest-growing spirits in the last few years.
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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.

DistilledSpritis.org

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.

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!

Gabby Fitzpatrick
Founder and CEO
Gabby’s knack for creating a great tasting cocktail stems from her family’s legacy of wine lovers. She brings experience in operations and logistics from the events industry where she successfully organized and executed 30+ worldwide conferences in the pharmaceutical industry, hosting companies that include Pfizer, Abbott and AbbVie. As one of the youngest female founders in the alcoholic beverage world, it has become Gabby’s mission to build and grow a diversified brand and pave the way for other underrepresented groups in the spirits world.

Scott Naccarato
Board of Directors
Scott Naccarato is a CPG expert who has been in the industry for over 15 years. In his former roles at Nutiva, Scott assisted in pioneering the Organic MCT Oil category taking advantage of the growing Ketogenic dietary trend and played a major role in category growth of Organic Coconut Oil and other healthy fats, plant-based proteins and nutraceuticals. He has cultivated many valuable relationships, held senior executive roles at rapidly growing companies and his data-oriented approach to revenue generation has led to sustained double digit year-over-year growth for all brands he has been a part of which include Nutiva, Ritual Superfoods, Naked Natural Foods/Naked Coconuts and Nexe Innovations. Scott has a vast understanding of public company operations and is well versed in both private and public corporate strategy. Scott now runs a CPG accelerator called Blenheim Pickwick Venture Partners Inc., where he helps take emerging brands to the next level.

Celine Gordon
Head of Marketing
As the President of Smart Charity, Celine is responsible for providing thought leadership to promote the organization’s compliance services to a wide range of nonprofits. She also leads all aspects of her company’s marketing efforts, including customer research, strategy, and customer communications. Prior to establishing Smart Charity, Celine worked for Fortune 500 companies including Maersk and gategroup in various leadership functions ranging from Business Development, Sales, Marketing and Communications. While working in the corporate world, Celine was instrumental in creating new divisions and brands across the globe, launching new products and services, leading public relations efforts, securing multi-million dollar accounts and successfully implementing new processes to generate efficiencies and decrease costs. Celine graduated from the University of Sophia Antipolis, France with a Bachelor’s degree in Management and Marketing and earned a Master’s degree in Marketing from Johns Hopkins University, Maryland.

Blenheim Pickwick Venture Partners
Board of Advisors
Blenheim Pickwick Venture Partners is led by a proven executive team of visionaries and entrepreneurs, with a combined pedigree of over 75 years in CPG sales channel development in the USA, Canada, Europe and Asian markets. We have direct relationships with B2B Distribution/Brokers, B2C Retail, Office Coffee Services (OCS) and Ecommerce platforms. Backed by a well-developed network of trusted suppliers, we are founded on a single vision to improve peopleʼs lives with innovative products and sustainable solutions. Our team brings extensive expertise in product and brand development, marketing and operations, M&A, VC, and access to a well-established network of distribution channels to produce results.
Christy Larsen
Board of Advisors
Christy began her business career post-university, as a receptionist in a mortgage office, with a very busy 30-line phone bank which she considers one of the most fun positions she has ever held. She worked in this same organization progressing through roles from branch manager to director of an international joint venture; she was seconded in London, England, for a few years with a leading mortgage bank. She has practical experience in project management, B2B sales, P&L management, asset management, and leadership. Today, she runs a family office with sizable assets, is the Managing Director of a charitable foundation, currently resides as the Chair of Trustees at Gonzaga University, and runs a small farmstead on the central coast of California with her husband. As a passionate pursuit, Christy also is a certified pastry chef with a degree from Le Cordon Bleu.

Lindsay Potter
Marketing Advisor
As one the first employees at Spiked Seltzer, Lindsay helped launch a new category of alcoholic beverages. As Director of Marketing, her skillset was instrumental in helping to grow the brand, which led to a sale to Anheuser-Busch in 2016. After her first exit, Lindsay went on to be head of Marketing at various leading consumer goods companies, including Rise Brewing Co. and Reeds, Inc. She launched Greenwich Cocktail Week in 2020, which celebrates cocktail culture, local bars and sponsors for one week every spring. Today Lindsay is self-employed as a Marketing Consultant for various brands.
Chris Stevens
Sales Consultant
Chris has 10+ years experience in the beverage industry, including distribution & supplier roles at Baroness and as National Sales Director for Nexus Brands, implementing multi-state promotions division, developing chain sales & expanding into Canada and Japan.

Alicia Vargo
Sales Consultant
Alicia has a varied and accomplished career in the Beverage Industry. With 25 years experience in wholesale distribution and brand development, her achievements include: Sr. Vice President Beverage Distributors Corporation (now BreakThru) & board member Department of Agriculture.
FG Labs
Fundamental Global Ventures’ network of experts and resources helps our portfolio companies grow by supporting their leadership teams, bringing additional resources to the table, and acting as a conduit to other experts and different sources of capital. Our venture firm consists of former entrepreneurs, corporate executives, and venture investors.

Use of Proceeds


If the offering's maximum amount of $255,000 is raised:

UseValue% of Proceeds
Production & Cost of Goods$80,50531.6%
Sales Team$50,00019.6%
Office & Business Expenses$10,0003.9%
Shipping & Warhousing$13,0005.1%
Marketing & Advertising$70,00027.5%
Distributor Fees$8,0003.1%
Incentive Programs$8,0003.1%
Travel/Market Visits$3,0001.2%
Intermediary fees$12,4954.9%

Terms

This is an offering of Common Units, under registration exemption 4(a)(6), in D. R. Cocktails LLC, doing business as Damn Right Cocktails. This offering must raise at least $10,000 by October 31, 2023 at 11:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. Damn Right Cocktails may issue additional securities to raise up to $255,000, the offering’s maximum.

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:

10,850,000 units
×
$0.30 per unit
$3,255,000implied valuation

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 28, 2023
  • Nov 1, 2023
    Primary offering finalized, selling 48,143 units
    Sold 48,143 units at $0.30 for a total of $14,442.90
  • Sep 11, 2023
    Hi Damn Right followers and supporters! As we...

    Hi Damn Right followers and supporters! As we close out the Summer, we’re happy to report a continued 150% average month over month growth. Our reach across the 9 states we’re in is growing and brand loyalty is continuing to spread. We have exceptional customers from CA to MO to NYC. This fall, the team is focusing on setting up chain store meetings for early 2024 resets. We are excited to continue our efforts on sales while we push forward toward the end of the year. Thank you for following along our journey!

  • Jul 24, 2023
  • Jul 18, 2023
    Damn Right Cocktails community: Thank you so...

    Damn Right Cocktails community: Thank you so much for all your continued support! We wanted to share with you that our Founder & CEO was announed as a finalist in the Women Founder’s Network Fast Pitch Compeition! She was selected among hundreds of applicants to compete for a cash prize at UCLA on October 24th. I’d love to hear any thoughts and questions you might have. Feel free to post them on our discussion board!

    https://netcapital.com/companies/damnrightcocktails
  • May 10, 2023
    Primary offering of 850,000 units at $0.30
  • May 10, 2023

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