Investor pitch deck

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Transcript of Investor pitch deck

An urban winery experiencecombining craft brewery attitude

with Whole Foods® mentality.

TIMELINE

• First natural wine harvest• First tasting room opened• Los Pilares partnership• Organic Certification, first in region• San Diego Urban Wineries, president• SF Chronicle Top 100 Wines recognition• First certified organic wine released• Tenant improvements begin @ new location• Target opening

“it should be opened and enjoyed by all of us to prove that the US can and does make relevant, special and ground breaking wine” – Jon Rimmerman, garagiste.com

201120122013

2014

2015Apr

Nov

MARKET

Locals157,600 core consumers within 10 minutes of location. Young, educated, employed, single, enjoy going out. Concerned about nutrition, health, are socially/environmentally conscious.

Tourists8 million+ overnight, leisure visitors w/o children annually. 7 of top 10 attractions within 10 minutes.2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

U.S. Total Wine Consumption per Resident

Gal

lons

OPTIONS

Remote WineryLong travel times – involves planning, takes the whole day. Everyone in group must like wine.

Wine Bar/RestaurantsRemoved from the winery experience. Just a place to get a drink; little differentiation.

Current wine consumer options.

EXPERIENCE

• Customers enjoy an authentic winery experience – at a convenient location.

• Tasting room with communal tables and energetic, low-pretension, “upscale industrial” vibe.

• Food menu focuses on small plates of wine-friendly fare made with natural, local ingredients.

• Small selection of beer and brandy cocktails appeases the non-wine-drinker in a group.

Vinavanti Urban Winery experience.

COMPETITION

• Temecula and Ramona regions offer a bucolic winery experience, but an hour+ drive away.

• Other urban wineries, but grapes generally not local and/or natural wine making practices.

• Many wine bars/restaurants, but do not offer a winery experience, and most wine lists non-distinct.

REVENUE

• Wine tastings/by-the-glass ($8-$12) and by the bottle ($28-$42), plus beer and brandy cocktails.

• Food sold in small to medium plates ($4-$16).• Average check per person $35;

700 weekly covers.– $1.26 million tasting room ($542 / sf)– + $250 thousand winery sales/cost recovery

• Additional revenue from event space rental.• Wine club offers recurring revenue model.

MARKETING

• High-visibility location in uptown, urban Hillcrest– At two intersections, one signalized (University/Normal)– Frontage on University Ave, connecting Hillcrest & North Park

neighborhoods (18,300 average weekday traffic)– Largest San Diego farmers market weekly (2,000 attendees) held at

University/Normal– Annual SD Pride Festival activities (200,000 attendees) start at

University/Normal• Launch press party, grand opening event, ongoing special events

with nonprofit partners• Web site, SEO, plus Yelp, TripAdvisor and social media programs• Wine club and other loyalty programs• Select tourism and destination advertising

KEY TEAM

Eric Van Drunen | President & WinemakerSeven years winemaking and winery owner/operator. First and only certified organic winery in region. San Francisco Chronicle’s Top 100 Wines of 2014. President and lead organizer of San Diego Urban Wineries trade group.

Heather Newman| Marketing & Events ManagerTwelve years in San Diego’s food and beverage industry. Three years in urban winery marketing, events and wine club management, overseeing a doubling in revenue.

Clara Brinkmeier| Director, BoardSeven years winery experience including production, tasting room, and wine club management. MBA.

FINANCIALS

Combined Operations

PROFITIBILITYTotal Sales 441,697$ 100% 1,514,391$ 100% 1,559,823$ 100% 1,606,617$ 100%Gross Profit 304,020$ 69% 1,042,355$ 69% 1,073,626$ 69% 1,105,835$ 69%EBITDA (87,091)$ -20% 177,600$ 12% 182,928$ 12% 188,416$ 12%Net Income to Total Assets (ROA) -13% 15% 14% 12%Net Income to Tangible Net Worth (ROE) -38% 29% 21% 17%

Tasting Room

SALESAverage Weekly Covers 405 694 715 737 Sales/Square Foot 158$ 542$ 558$ 575$

PROFITIBILITYSales 368,568$ 100% 1,263,661$ 100% 1,301,571$ 100% 1,340,618$ 100%Prime Costs 274,100$ 74% 780,311$ 62% 803,720$ 62% 827,832$ 62%Controllable Profit (16,103)$ -4% 262,210$ 21% 270,076$ 21% 278,178$ 21%Occupancy Costs 62,177$ 17% 115,486$ 9% 118,950$ 9% 122,519$ 9%EBITDA (78,280)$ -21% 146,724$ 12% 151,126$ 12% 155,659$ 12%

Winery

SALESCases Sold 467 1,600 1,648 1,697

ACTIVITYInventory Days 1,892 552 536 520

PROFITIBILITYSales 73,130$ 100% 250,730$ 100% 258,252$ 100% 265,999$ 100%Gross Profit 34,044$ 47% 116,724$ 47% 120,225$ 47% 123,832$ 47%EBITDA (8,811)$ -12% 30,876$ 12% 31,802$ 12% 32,756$ 12%

2015 2016 2017 2018 Pro-forma financials starting

July 2015.

• Raising $250k in convertible notes, closing August 2015.• Additional financing via:

– owner injection ($102k)– loans ($480k)– tenant improvement allowance ($50k)

• Financing used for:– tenant improvements ($428k)– new FF&E and other assets ($123k)– working capital ($471k)– other startup expenses ($36k)

• Existing FF&E and inventory valued over $251k.

INVESTMENT

CONTACT

Eric Van Drunen | President & [email protected]

877-484-6282

www.vinavanti.com@vinavanti

#drinkadventurously