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Miel de Tierra

Miel de Tierra

Miel de Tierra is a multiple award winning Premium Mezcal brand produced in small batches throughout different regions in Mexico.

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Deal Type

Convertible Note

Funding Goal

$1,000,000

Current Reservations

$10,000

Minimum Reservation

$10,000

Deal Stage

Series B

Interest (% per year)

10.00%

Term Length (Months)

36 months

Valuation Cap

$7,000,000

Conversion Discount (%)

15%

Warrant Coverage (%)

N/A

Open Date

04/05/2018

Maximum Reservation

$1,000,000

Closing Date

06/30/2018

Elevator Pitch

Miel de Tierra is the most awarded Mezcal brand on the market, with 6 labels featuring the most cherished regions across Mexico, making one of the best investment opportunities in the spirits industry

KPIs

10 Employees
$410,000 Sales
Cash Flow Positive

Company Overview

We started off the Miel de Tierra Brand with the idea of taking advantage of the rising popularity wave in Mexico and in the US of Premium Mezcal .

Our main focus is to create a product that can be massively introduced to a virgin market of consumers, using the momentum of the Mezcal category which already in Mexico is overtaking the Tequila Industry.

We achieve this, by having one advantage: Excellent Marketing.

Our focus is to create and promote our brand using extremely targeted branding strategies, this has allowed us to grow sales by an average rate of 86% in the last three years

While other rising Liquor brands typically spend 50-80 % of their revenue on their launching year in marketing and advertising, we spent only 21.3%, and still achieved a sustained and significant growth in recurrent sales throughout the retail channels.

Since our launch date, we have increased our mezcal portfolio from 2 labels to 6 labels, spanning 3 different regions and different styles of artisan Mezcal. This key difference provides a powerful advantage thanks to the versatility of offering contrasting Mezcal labels. Other Mezcal companies limit their selection to one distillery, and thus seriously limiting their product offering.

We have signed distribution contracts with International Importers in the US, Germany, Italy, the UK, Lebanon and in the process of signing with 3 additional clients abroad. These are commercial allies that have years of experience distributing premium spirits, and with our support, we are on track to achieve International Distribution to tap one of the fastest growing spirit categories in the last 5 years.

Euromonitor International estimates in its anual spirit reports, that Tequila and Mezcal growth will total 25.9% over the next 5 years, compared to other categories Rum: 13.4%, Cognac 4.4%, Vodka 4.5%

During 2017 we worked in developing a craft beer brand Miel del Cielo. The reason behind this new category product is because our largest importers where on the lookout of a premium, well branded beer that could differentiate with the industrial products in the Market. We backtested our design and recipe with focus groups, got repeated feedback, and perfected our product.

Since then, our craft beer has been an excellent driver for growth for our company, and we have looked for ways to repeat the process across different categories to take advantage of our branding expertise and our International distribution network




Traction

  • Awarded the Double Gold Medal as Best Tasting Spirit of 2014 at the California International Spirits Competition.

    July, 2014
  • Awarded the Silver Medal at the New York International Spirits Competition

    November, 2014
  • FDA approval number required for importing the product to the USA and other countries. # 15521104360

    August, 2014
  • Anual Double digit sales growth from Mexico customers ( HEB and other wholesalers )

    December, 2014
  • Signed distribution and importation agreement with German Importer

    January, 2015
  • USPTO granted brand registration for the USA

    January, 2015
  • Received first International Purchase Order

    February, 2015
  • Launched a new Mezcal line from San Luis Potosi after 2 years of product development.

    February, 2015
  • Closed our first round of equity funding with International Investors

    September, 2015
  • Signed distribution and importation agreement with US Importer

    March, 2016
  • Signed distribution and importation agreement with Italian Importer

    October, 2016
  • Finished the product development phase of our new beer brand Miel del Cielo.

    January, 2017
  • 3 of our brands where placed in the global top 10 Mezcal labels by Distillers Magazine, one of the most recognized spirit tasters in the US

    April, 2017
  • Had an all time national sales sellout record in March 2017

    April, 2017
  • Awarded the 2017 Gold Medal by Tastings.com as one of the top ranked Mezcal labels in the US market.

    July, 2017
  • Signed an International Distribution agreement with a National Importer in Belarus, Eastern Europe.

    November, 2017

Pitch Deck

Press Mentions

Key Customers & Partners

HEB Supermarkets La Castellana La Europea Imports Vinoteca Preiss Imports Bonaventura Maschio Italia Sucos do Brasil Cocurum Korea Pacific Edge Distributors

Testimonials

James Hakim
James Hakim
Investor
""I made an investment with Miel de Tierra not knowing how fortunate I would eventually become. They are a hard working and driven team with a great product that virtually sells itself, you can taste the quality in every sip of MDT that you take and I would definitely recommend them to anyone. I have enjoyed seeing them grow and will continue to do so." "
James Hakim
James Hakim
Investor
"What transpired later on was a piece of good fortune as Mr. Juan Gonzalez the CEO and Founder was from the beginning to this day very responsive to all my queries and emails. A especially down to earth and transparent individual who is hard working and has never led me to doubt him, he has put me at ease from the very start. A true professional and a connoisseur as you will come to realize when you finally taste the finished product."

Previous Funding

  • $270,000 Equity
  • Raise Source: Investors
  • September 2015
  • $70,000 Convertible Note
  • Raise Source: Investors
  • March 2018
  • $100,000 Debt
  • Raise Source: Bank
  • January 2018
  • $150,000 Debt
  • Raise Source: Investors
  • November 2017

Frequently Asked Questions

What is Mezcal ?

Mezcal is one of the oldest spirits to be produced in the Americas dating back to the XVI century. Mezcal is an agave-based spirit and is usually referred to as the "Grandfather of Tequila" unlike tequila, Mezcal has a very strict manual production process, as well as purity regulations that prevent it from becoming an industrial spirit. For this reason, Mezcal is of higher quality, as well as higher priced. Mezcal has its own Denomination of Origin and its production is restricted within a few states in Mexico. It is also important to mention that Mezcal has become the fastest growing spirit category in Mexico and the USA.

Will I be investing in a US based company or a Mexico based company ?

The Company is legally and properly constituted in Mexico as an LLC . The companies legal status allows foreign investors up to a 49% equity holding. The Miel de Tierra Brand is properly registered in the USA by the USPTO serial number: 86127169 as well as registered in Mexico by the equivalent Intellectual Property Authorities.

Does the company own any fixed assets that are part of the valuation ?

No, our business model differs from conventional spirit brands, we do not own any fixed assets such as the distillery, land, machinery etc. instead, we have a contractual partnership with the producers that secures the supply of the product, while giving brand ownership and commercial rights strictly to our company. This business model allows for us to have less risk, ( less investment needed ) yet still be able to reap the rewards of having a successful brand that we own and operate.

As an investor, will my equity be limited to sales in the US ?

No, investors have ownership of the holding company which owns and operates the Miel de Tierra brand worldwide, including current operations in Mexico, USA, Canada, Italy and Germany

Where will the funds be invested in ?

30% will go directly to working capital, ensuring we have the supply for our growing network of clients, 40% to sales and marketing throughout our most important channels of distribution, 20% to new employees. A detailed account of such expenses is available on a 5 year forecast that will be provided in detail to investors.

What is your exit strategy ?

Our exit strategy is going to set up our company for a M/A This could happen within 3 to 6 years from now. It is important to mention that our management style is extremely frugal compared to other Spirit start-ups, and the reason for this is because building a strong brand takes time, and many brands do not make it simply because they ran out of resources by going all out in their first few years. Our plan is to be extremely conservative when using our resources, yet still investing in building our brand. Finding cost-effective marketing strategies remains one of our top abilities, this in part because for 3 years when starting our company we had no resources, so we where forced to optimize as much as possible, and that skill and culture remains today. This strategy is what will allow us to remain in the game long enough for our brand to mature and be of interest to other Spirit Conglomerates.

Documents

Confidential

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