Investment Opportunity Summary for American Beverage Group (Ambev)
Introduction:
American Beverage Group, DBA Ambev, is a cutting-edge rectification and manufacturing facility based in Henderson, Nevada. We are seeking an investment of $10 million to support our rapid growth and strategic acquisition plans. Ambev, which launched its operations in the second quarter of 2024, has already exceeded production projections and is poised to become a major player in the beverage industry.
Approximate Use of Proceeds:
- Payoff all equipment loans: $2.5 million
- Purchase wine and spirit brand: $3.5 million
- Marketing and business development: $4million
Current Operations and Achievements:
Ambev's state-of-the-art facility is licensed and bonded by city, state, and federal authorities. We have established strategic distribution alliances in 14 states, allowing us to produce and distribute custom alcoholic and non-alcoholic products for regional customers. In the second quarter of this year, we successfully formulated, produced, and brought to market six innovative brands of energy drinks for new third-party customers. Our advanced production capabilities include filling various can and bottle sizes, carbonating at specific levels, and canning top-shelf wines, spirits, craft cocktails, and specialty drinks.
Our diverse team brings years of experience in both alcoholic and non-alcoholic beverage production. One of our minority partners, renowned for his own business, "The Drink Inc.," has an unparalleled reputation. We are now his number one referral producer, contributing to our strong pipeline of reorders and exceeding projections, with third-party production scheduled out one quarter. Our Chief Consultant at Ambev has 20 years in the industry and is the co-founder of the brand we wish to acquire. This strategic partner has insight into the brand, the story of the brand, and the family's commitment to the brand. In the wine and spirit space, the story of the bottle is almost as important as what is in the bottle.
Strategic Acquisition and Growth Plans:
Ambev's goal is to acquire a nationally recognized brand in the Western Heritage space. This acquisition will enable us to produce branded products alongside our third-party white-label customers, leveraging the marketing and logistics capabilities and strategic distribution alliances that come with the purchase. We aim to sell or flip the acquired confidential brand for no less than $70-100 million within 72 months while continuing to operate our manufacturing facility, enjoying great returns from the projected monthly gross of $650,000 from co-packing operations.
Historic Sales Data:
The spirits industry has seen significant acquisitions in recent years, demonstrating the strong market potential:
- Casamigos, co-founded by George Clooney, was acquired by Diageo for $1 billion in 2017.
- Pendleton Whisky was acquired by Becle, S.A.B. de C.V. for $205 million in 2017.
- Aviation American Gin, co-owned by Ryan Reynolds, was acquired by Diageo for up to $610 million in 2020.
- Ole Smoky Distillery sold a majority stake to Centerview Capital for a rumored amount of $320 million in 2019.
- Austin Cocktails was acquired by Pernod Ricard in 2021 for an undisclosed amount.
- Bardstown Bourbon Company was acquired by Pritzker Private Capital in 2022 for an undisclosed amount.
Market Trends and Opportunities:
The demand for aluminum cans is robust and growing. Aluminum cans are here to stay due to their sustainability, recyclability, and convenience. Post-COVID, the market for canned cocktails and other canned beverages has been exceptionally strong. The versatility and portability of canned drinks have driven consumer preference, creating a lucrative market opportunity.
The Las Vegas area, including Henderson, is experiencing significant growth in manufacturing. This region is becoming a vital feeder for products to California and the broader region, further enhancing our strategic location's advantages.
Investment Security and Potential:
Investing in Ambev offers substantial security and potential for growth. With no existing debt, your investment will be secured by a first lien on over $3.5 million worth of equipment. Additionally, our third-party co-packing operations are already cash-flow positive. The acquisition of the confidential national brand will come with pre-existing orders, ensuring immediate revenue generation. Our wine and spirits products have already exceeded expectations at the pre-sale R&D level, indicating strong market demand and acceptance.
Conclusion:
Investing in Ambev is an opportunity to be part of a rapidly growing company with a proven track record and strategic growth plans. With established distribution channels, a state-of-the-art facility, and a dedicated team, Ambev is well-positioned to capitalize on market trends and deliver significant returns on investment. Your support will enable us to achieve our vision of becoming a leading beverage producer and distributor in the region and beyond.
We look forward to discussing this exciting investment opportunity with you further.
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