Picture a setting where a lawn party is the back-drop at dusk – strings of low voltage Edison bulbs crisscross the space. Regional mixologists are offering cocktail recipes, local artists are sharing their works and music. Quality farm-to-fork foods are available in conjunction with local chef-owned restaurants. And we are the canned cocktail standard served to your guests for a night with friends. Our award-winning and WBE-Certified brand is disrupting the $5 billion/year Flavored Malt Beverage space which is expected to double in sales by 2020. In late 2016, we introduced a premium, craft element to the growing FMB category which has been a growth driver in beer, wine and spirits over the past 10-15 years. We are pivoting in the 2nd half of 2018 to shift to a more health conscious formula with lower sugar, carbs and calories, and rebranding to reflect the premium and sophisticated nature of the brand. We have contracted with Cascadia Managing Brands in New York City to quickly launch the brand into 300+ high-end accounts in the NYC metro area and then scale quickly to the West Coast. Our success so far has been in part to outsourcing key elements to create and produce the product without heavy initial capital investment, allowing the company to focus their resources on marketing and selling the brand. After launching in November 2016, the brand has a distribution footprint in all 92 Indiana counties and has generated $385,000 in revenue along with multiple awards for innovation. Garden Party has been featured in Bloomberg Businessweek, Beverage Industry Magazine, Gear Patrol, VinePair, Sunday California Magazine, BevNet and all major Indianapolis media outlets. This raise will be dedicated immediately to the rebranding, reformulation and relaunch efforts.

1456161872 headshot
Stephen Edds, COO

Financial Summary

Previous Fundraise Summary

Security Type Revenue Share
Minimum Investment $500
Equivalent Interest Rate (/yr) 21.05%
Payback Multiple 1.4x
Payment Frequency Monthly
Disbursement Late Fees 5.00%
Loan Collateral Unsecured
Seniority Junior
Maturity August 31, 2021
Investor Eligibility All Investors

Offering Materials

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Investment Perks

Expired 05/15/2018 | $500.00
Increased payback multiple!

Complete your investment prior to May 15th and receive a 1.5x payback multiple instead of 1.4x! On a $10,000 investment, this is potentially worth an additional $1,000! After May 15th, the multiple offered will go back down to 1.4x.

Financials

This is an overview of the previous and planned financings of the business, including the capital needs the business is looking to cover in the current financing.

Funding Uses for Target Raise ($25 k)

Other
$20,000
Description $13,000 – Cascadia Managing Brands retainer (2 months) $7,000 – Marketing and Administrative
Timing 4 monthly payments beginning when investments close.

Funding Uses for Max Raise ($105 k)

In addition to target raise

Marketing/Sales
$55,000
Description $40,000 – Event sponsorship, staffing, promotional and support materials $15,000 – Expenses for new templates and plates for branding
Timing 4 monthly payments beginning when investments close.
Other
$5,000
Description $5,000 – Trademark filing and legal
Timing A one-time payment when investments close.

Remaining funding uses include cash buffer and Localstake Marketplace fees. See offering materials for full details.

Pitch Deck

Pitch Deck

Q&A

What is your competitive advantage?

Garden Party has several advantages over their competition:

  • 100% all-natural which is a growing consumer concern
  • Low sugar (20g per can)
  • Higher ABV (bang for the buck)
  • Versatility (use alone or as a mixer)
  • Erin Edds as a marketable face of the company for promotional and press appearances
Who are your competitors?

No one in the US is doing a premium, all-natural, flavored malt beverage. We have been recognized by Beverage Industry Magazine as an Innovation of the Year in 2016 and we are looking to lead the premiumization movement in this category.

 

 

DOLLAR SALES

% CHANGE VS. PRIOR YEAR

CASE SALES

% CHANGE VS. PRIOR YEAR

Bud Light Lime

$353,104,210

-12

10,221,619

-12.2

Redd's

$322,613,131

-4

10,119,004

-5.2

Mike's Hard

$266,792,090

6.8

7,662,981

4.6

Mike's Harder

$235,798,918

15.4

7,098,968

14.9

Smirnoff Ice

$229,819,946

5.1

6,562,886

4.3

Twisted

$215,006,262

19.3

6,910,155

17.9

Four Loko

$150,781,179

13.6

4,448,531

11.8

Small Town Brewery

$109,882,574

2.1

2,482,693

1.1

Henry’s Hard Soda

$81,090,059

 

2,287,647

 

Best Damn

$66,462,383

 

1,711,789

 
What market(s) are you in?

Product is distributed currently in Indiana, and we are looking to scale outside the state in the Spring of 2018 into markets which are aggressive markets for our type of product. Our plan is:

Spring 2018 - Nashville, Minneapolis, New York City (Brooklyn)

Fall, 2018 - Florida, Texas

Spring, 2019 - Chicagoland, Wisc, Michigan, Ohio

Fall, 2019 - Carolinas, New Orleans, 

Spring, 2020 - California, New England.

What is the composition of your current team?

Erin Edds and Stephen Edds fulfill all current roles within Garden Party. Peter Ritz is our contracted CFO, BevSource in Minneapolis is contracted to provide licensing, flavor development, logistics, compliance, QA and bookkeeping. Blues City Brewery in Memphis does production and warehouses the excess product. We ship direct to distributor and manage the sales process. Cascadia Managing Brands is contracted to lead the growth strategy in 2018, Agency Squid in Minneapolis has taken on a small equity piece in return for the opportunity to create the marketing and social media strategy for the brand, and Rare Bird created our award-winning website. 

Provide detail on your hiring plans

As the company scales outside of Indiana, our initial hiring efforts will be focused on brand ambassadors to grow sales and manage key relationships in our areas of expansion. We anticipate the first to occur in Spring of 2018. An event planner will be hired in early 2018 to coordinate and manage promotional events. As the company continues to scale, key functions such as accounting, HR, quality control, etc will be brought under the DrinkGP umbrella. 

Who are your target customers?

Our target consumer is the 25-45 year old health-conscious consumer. Michelob Ultra is the fastest growing domestic beer and the rise of Hard Seltzers all contribute to this growing consumer base of people who are concerned about what they put in their body, even alcohol products.

Do you have current customers?

Monarch Beverage is distributing in 69 counties in Indiana. AALCO in Ft Wayne, Calbrew in Hammond and Rhoades Beverage in Plainfield are distributing in the remaining 23 counties. We are being sold in selected Kroger, Fresh Thyme, Whole Foods and Target location and are working on permanent plannogram placements with these and other chains. 

What is your current customer pipeline?

Garden Party Botanical Hard Sodas will generate revenue through the following channels:

  • Distributors - Wholesale price to distributors: $28.00/case

* *Cost to produce: $2.90 per 4 pack.

The distributors will seek placement with three major account-types:

On-premise: Restaurants, bars, country clubs, etc

Off-premise: Liquor stores, grocery stores, etc

Chains: Kroger, Meijer, etc.

 

Gallery

Provide us with some background on your products and services.

Below is a description of the products offered by Garden Party Botanical Hard Sodas:

 

Garden Party are designed to bridge the gap between beer and wine, providing a refreshing, crisp, clean taste without the bitter beer flavor. It’s great for a day at the beach, park, racetrack or just to sit and share with friends.

We launched with two initial flavors to ensure shelf placement. 

  • Garden Party Ruby: Ginger infused with Hibiscus and Pomegranate (think: "Spicy Moscow Mule")
  • Garden Party Violet: Lemon infused with Lavender and Blackberry (think: "Boozy Lemonade w/out the sugar bomb")

Packaging details:

  • Carbonated Adult Beverage
  • 8% ABV
  • 12 oz “sleek” aluminum can
  • 4-pack with cardboard outer packaging
  • SRP - $9.99 per 4-pack
  • Estimated production costs per 4-pack - $2.90

We are planning to do a slight reformulation in Spring, 2018 from a malt-base to a sugar-alcohol base, which will lower the calories, carbs and sugar to match the hard seltzers while having a much stronger flavor profile. In addition, we will be developing two new flavors to increase our line to four flavors.

Related Links
What is your production process?

Garden Party is produced by Blues City Brewing in Memphis, TN which does large scale production and also handles Mike's Hard Lemonade and White Claw, among others. BevSource in St Paul, MN oversees the production, logistics, licensing and quality control and Erin Edds will be the point person for DrinkGP. 

What is your product development timeline?

We require several months in advance to introduce new flavors in order to receive approval from the Tobacco Trade Bureau (TTB.) Once the approval is reached, we submit a PO to Blues City Brewery and production occurs in the following month. Warehousing occurs in Memphis at a facility near Blues City Brewing and at Rhoades Beverage in Plainfield, IN. This setup allows us to produce in large quantities and ship nationwide within a couple of months from receiving an order. 

Gallery

How do you sell your product or service?

Garden Party will generate revenue through the following channels:

  • Distributors (65% of sales) – Wholesale price to distributors: $5.80
  • Chains (35% of sales) – Wholesale price to chains: $6.90

Distributors pay in full on Net 15 terms, while Chains will pay in full on Net 30-45 day terms. This is not consignment, they do not pay as the product is sold on the shelves. 

How do you market your product or service?

Please refer to the attached updated Business Plan for details.

Team

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Stephen Edds

Cofounder/COO

Stephen has 25 years’ experience in sales and marketing and left his job at a publisher to work for Erin and serve as the National Sales Manager for Hoosier Momma. During his 4 year tenure, he secured distribution deals with 14 separate distributors as well as chain placement in Kroger, Meijer, Walmart and Sam’s Club. That succes is due to his hands-on approach to relentlessly and passionately promote and sell the brand at every opportunity. Stephen is also the author of three books, including “The Losing Game: Why You Can’t Beat Wall Street,” which led to the creation of a publishing company to self-publish the book. Stephen appeared on more than 40 radio programs across the country during the promotion tour. Stephen has a BA in Political Science from Hanover (IN) College.

1456845434 erin at ivy tech cropped

Erin Edds

Cofounder/President

- Named “One to Watch in Local Foods” by the Indianapolis Star in 2011;

- Nominated as “10 to Watch in Indianapolis” in 2012;

- Named a “Local Hero in Artisan Foods” by Edible Indy in 2015;

- Featured appearances on Inside Indiana Business, Indy Style, Fox 59, WISH-TV, and in the Indianapolis Star, Indianapolis Monthly and Ivy Tech Community College Magazine.

In May 2010, Erin co-founded Hoosier Momma, LLC. Starting as a farmers market product, Hoosier Momma Bloody Mary Maker grew rapidly to include distribution in 19 states with over $500k in sales and a Top 25 category performer nationally by 2014. The company was featured on the front page of the Food Section of the LA Times, and received additional praise from TIME, Chicago Tribune, Imbibe, Midwest Living, Tasting Panel and American Express OPEN Forum, just to name a few. Hoosier Momma Bloody Mary Maker was selected to be served at the Official NFL Tailgate at Super Bowl 46 in Indianapolis and Super Bowl 47 in New Orleans.

Edds is passionate about using her culinary and entrepreneurial experience to help students at Ivy Tech. She currently serves on the Alumni Board for the college, and the Hospitality School Advisory Council where she is working to help design the Hospitality Entrepreneurship Certificate Program.

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BevSource - Minneapolis, MN

Service Provider

Beverage Formulation & Development Experts, Contract Manufacturer, Beverage Consulting & More

Beverage visionaries worldwide have turned to Production Services International (PSI) for turnkey beverage production, beverage operations consulting, contract packing management, materials procurement, fulfillment and logistics management. By expertly navigating the beverage industry for our clients, PSI empowers you to stay focused on marketing and selling your brand.

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Katz.Korin.Cunningham

Service Provider

The lawyers of Katz Korin Cunningham deliver a comprehensive array of legal services to individuals, businesses (public and closely held entities) and government-related organizations.

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Somerset CPAs and Advisors

Service Provider

Since our founding in 1960, when we were originally known as Whipple & Company, Somerset CPAs and Advisors has been dedicated to looking after our clients’ best interests. Decades of expanding our client base and services, along with continued growth and mergers, have made us what we are today—one of the most trusted and respected accounting firms in the region.

With our office centrally located in Indianapolis, we can easily serve our clients throughout the nation. And as a member of the BDO Alliance USA—a nationwide association of independently owned accounting and consulting firms—we have access to BDO International, which gives us the resources, services and technical knowledge to provide professional support and expert advice for our clients doing business internationally.

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Cascadia Managing Brands

Service Provider

Sales Broker and Advisor with an unparalleled reputation and 30 years in the industry building brands such as Snapple, Evian and others.

About Garden Party Botanical Hard Soda

Entity DRINKGP, LLC
Entity Type LLC
State Organized Indiana
Founded September 2016
Employees 0
Social Media
Website

Headquarters

Company Updates

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Discussion

Topic Last activity

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Risks & Disclosures

Describe your company's organizational structure

We are setup as an LLC with Erin Edds owning 51% and Stephen Edds owning 43.595% and other investors owning non-voting shares totaling 5.005%. Erin and Stephen are the only employees of the company, with a majority of functions being outsourced. 

Comment on and upload any information regarding previous, current, or anticipated legal proceedings or regulatory issues

There are no previous, current or anticipated legal and/or regulatory actions against Drink GP LLC. Erin Edds was involved in a legal dispute with her former partners in Hoosier Momma, LLC, which was dismissed on 02/18/2016.

The brand is currently in the TTB and alcohol beverage regulatory phase, in which the name, the formula and the can design has to be submitted for approval. PSI has vast experience with this and their expertise will ensure that the process will proceed without delays. 

Do you have any employment contracts for key personnel?

Not at this time.

Do you have any shareholder loans?

Not applicable

Who owns your product/service?

Garden Party sells a beverage that we created. We have the intellectual property on the recipes, the name, the flavors and the branding.

What are the legal and regulatory requirements in your industry?

We will be operating under the umbrella license of BevSource of St Paul, MN which will allow us to produce and sell alcohol in any state, and BevSource will be responsible for all regulatory filings, compliance and alcohol taxes. 

An investment in the Company involves a high degree of risk, and should be regarded as speculative. Prospective investors should carefully consider these investment risks, among others, in addition to the other information presented in the Offering Materials, in evaluating the Company for investment. The risks listed herein are not a complete list of potential risks facing the Company and it may encounter unexpected risks in the future, which, may adversely affect its performance.

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