Blackland Distillery

Blackland Distillery

Growth Stage

Fort Worth's Newest Craft Distillery

Fort Worth's Newest Craft Distillery

Overview

Funding data not publicly available
Platform

Title3Funds

Start Date

12/27/2023

Close Date

12/01/2024

Min. Goal
$10,000
Max. Goal
$1,235,000
Min. Investment

$500

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$5.00

Pre-Money Valuation

$25,000,000

Year Founded

2021

Industry

Alcohol, Tobacco, & Recreational Drugs

Tech Sector

Non-Tech

Distribution Model

B2B2C

Margin

Medium

Capital Intensity

High

Location

Fort Worth, Texas

Business Type

Growth

Blackland Distillery, with a valuation of $25 million, is raising funds on Title3Funds. The distillery offers a diverse portfolio of spirits that cater to a wide range of tastes and preferences. Blackland Distillery makes high-quality products using the finest local ingredients and state-of-the-art production methods. The well-known products of Blackland Distillery include Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon. Markus Kypreos founded Blackland Distillery in March 2021. The current crowdfunding campaign has a minimum target of $10,000 and a maximum target of $1.24 million. The campaign proceeds will be used for marketing, manufacturing, equipment purchases, future wages, repayment of debt, and general working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$2,417,101

$1,541,560

COGS

$909,086

$880,848

Tax

$54,247

$11,550

 

 

Net Income

$-723,765

$-1,260,593

Summary Balance Sheet

FY 2022 FY 2021

Cash

$38,200

$97,459

Accounts Receivable

$422,966

$320,294

Total Assets

$1,146,891

$1,092,333

Short-Term Debt

$174,303

$97,401

Long-Term Debt

$2,160,216

$5,940,918

Total Liabilities

$2,334,519

$6,038,319

Financials as of: 12/27/2023
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Analyst Report

Synopsis

Blackland Distillery is a Fort Worth-based craft distillery that offers a diverse portfolio of spirits that cater to a wide range of tastes and preferences. The distillery takes pride in using the finest local ingredients and state-of-the-art production methods to create high-quality products. The well-known products of Blackland Distillery include Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon.

The company's name, Blackland, is derived from the Blackland Prairie, which runs from the Red River to the north and San Antonio in the south. This region was historically characterized by lightning fires that cleared the land for native tall grass to thrive in the rich, dark soil. Blackland Distillery aims to bring new life into every sip by working through established practices and challenging conventions at each turn.

With the funds raised in this campaign, Blackland Distillery plans to use the proceeds for marketing, manufacturing, equipment purchases, future wages, repayment of debt, and general working capital. This funding will help the company expand its operations and reach, bringing its high-quality spirits to more consumers.

Next Section: Price

Price

Blackland Distillery is raising funds on Title3Funds at a valuation of $25 million. The company offers a diverse portfolio of high-quality spirits, including Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon. With an annual revenue of $2.4 million and a revenue-to-valuation multiple of 10.34x, Blackland Distillery is priced reasonably for a company in the Alcohol, Tobacco, & Recreational Drugs industry.

Investing in Blackland Distillery provides an opportunity to participate in the growing spirits market in the US. The company has shown strong revenue growth of 56.8% annually, indicating a healthy and promising business model. With its unique product offerings and focus on quality ingredients and production methods, Blackland Distillery has the potential to capture a significant share of the market.

While the valuation of $25 million may seem high, it is important to consider the company's potential for future growth and expansion. Blackland Distillery's diverse product range and commitment to quality position it well for success in the spirits industry. Investors should also note that the company has already raised $800,000 in prior funding, indicating investor confidence in its business.

Next Section: Market

Market

Blackland Distillery operates within the US spirits market, which boasts an impressive size of $54.9 billion. Predicated on the production of high-quality spirits using local ingredients and advanced production methods, the company has a diversified portfolio that appeals to a wide range of tastes and preferences. Their offerings include Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon. Such diversity in product offerings caters to different consumer preferences and helps mitigate the risks associated with over-reliance on a single product.

However, it is worth noting that the spirits market is highly competitive. It's populated by numerous established brands with extensive distribution networks and market recognition. The high competition level necessitates Blackland Distillery consistently demonstrating its unique value proposition to differentiate itself and carve out a market share.

In addition, the spirits industry is characterized by high regulatory scrutiny. Companies operating in this sector must comply with numerous regulations related to producing, distributing, and marketing alcoholic beverages. These regulations pose substantial barriers to entry and growth, requiring Blackland Distillery to navigate through them effectively to operate successfully.

Furthermore, while the overall growth rate of the spirits market stands at 2.75%, the increasing consumer preference for high-quality, locally produced spirits could provide Blackland Distillery with a lucrative growth opportunity. Given the company's commitment to using local ingredients and state-of-the-art production methods, it is well-positioned to cater to this market segment.

Next Section: Team

Team

Blackland Distillery is owned and operated by founder Markus Kypreos. With six years of relevant industry experience, Kypreos brings a passion for crafting high-quality spirits to the company. He has dedicated himself to creating a diverse portfolio of spirits catering to various tastes and preferences.

The team at Blackland Distillery consists of 15 members. While most of them are unknown and not on the raise page, the company has a Master Distiller, Ezra Cox, and a strong Director of Marketing, Hannah Lacamp. The team has complementary skillsets, which should set Blackland up for success in the future. 

Next Section: Differentiation

Differentiation

Blackland Distillery sets itself apart in the highly competitive US spirits market through its commitment to quality and diverse portfolio of high-quality spirits. The distillery offers a range of products, including Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon, catering to various tastes and preferences.

What differentiates Blackland Distillery is its focus on using the finest local ingredients and state-of-the-art production methods. By sourcing local ingredients, the distillery showcases the unique flavors and characteristics of the Blackland Prairie region. This commitment to quality extends to its production methods, ensuring that each sip of Blackland Distillery's spirits offers a distinct and enjoyable experience.

While Blackland Distillery operates in a highly competitive market with numerous established competitors, its dedication to quality sets it apart. The company aims to challenge convention and remaster spirits, bringing new life and innovation to each product. 

As the company continues to grow, it has the opportunity to strengthen its position in the market through strategic partnerships and effective marketing campaigns. By showcasing the unique flavors of the Blackland Prairie and emphasizing its commitment to quality, Blackland Distillery can build a loyal customer base and establish itself as a reputable player in the US spirits industry.

Next Section: Performance

Performance

Blackland Distillery has gained traction in the market, with a reported annual revenue of $2.4 million. The company has experienced significant revenue growth, with a growth rate of 56.8% since the last reporting period. This growth indicates strong market demand for Blackland Distillery's products and suggests that the company is effectively capturing market share.

Blackland Distillery has partnered with major distributors, including Southern Glazer's Wine & Spirits, Savannah Distributing Company, and KVE Drinks. These partnerships provide valuable distribution channels for Blackland Distillery's products, ensuring widespread availability and customer access.

The company has a strong customer base and a loyal following. Blackland Distillery has paying customers who appreciate its spirits' high quality and unique flavors. The distillery's products have gained recognition and popularity in the competitive spirits market.

Overall, Blackland Distillery is a promising player in the spirits industry, with a diverse product offering, strong revenue growth, and strategic partnerships. The company's focus on high-quality ingredients and state-of-the-art production methods positions it well to capitalize on the growing demand for craft spirits.

Next Section: Risk

Risk

Investing in Blackland Distillery carries certain risks that potential investors should know. Firstly, the alcohol industry is extremely competitive, with numerous established players and new craft distilleries entering the market. Blackland Distillery must differentiate itself and effectively market its products to gain market share and stand out among its competitors. Failure to do so could result in limited sales and revenue growth.

Additionally, Blackland Distillery operates in an industry subject to high market approval and license regulations. Compliance with these regulations is essential to operate legally and avoid potential legal issues. However, the likelihood of facing legal issues is low due to the company's commitment to adhering to established practices and regulations.

As a hardware and consumer packaged goods (CPG) company, Blackland Distillery faces production and quality control risks. Ensuring consistent quality across its product range is crucial to maintaining customer satisfaction and brand reputation. Any production or quality control issues could result in product recalls, negative customer reviews, and damage to the company's reputation.

Furthermore, Blackland Distillery has a negative net income and a monthly burn rate, indicating a reliance on external funding to sustain its operations. The company's financial situation highlights the importance of securing sufficient capital to support marketing efforts, manufacturing, equipment purchases, and general working capital.

Next Section: Bullish Outlook

Bullish Outlook

Blackland Distillery is well-positioned to capitalize on the growing demand for craft spirits and the increasing popularity of local, high-quality products. Blackland Distillery caters to various tastes and preferences with a diverse portfolio of spirits, including Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon.

The company's commitment to using the finest local ingredients and state-of-the-art production methods sets it apart in the competitive spirits industry. Blackland Distillery has built a strong reputation and a loyal customer base by focusing on quality and craftsmanship.

Blackland Distillery's annual revenue of $2.4 million and impressive revenue growth rate of 56.8% demonstrate the company's ability to generate substantial sales and attract consumers. 

Furthermore, the company's partnerships and strong distribution network enable it to reach a wide customer base. By leveraging the B2B2C distribution model, Blackland Distillery has the opportunity to expand its reach and increase sales.

While the market potential for craft spirits may be considered low compared to other industries, Blackland Distillery's focus on quality, diverse product offerings, and commitment to local ingredients position it for continued success. As the craft spirits market grows and consumers increasingly seek unique and authentic experiences, Blackland Distillery is well-positioned to capture a significant share of the US spirits market.

Next Section: Bearish Outlook

Bearish Outlook

While Blackland Distillery has seen strong revenue growth in recent years, it operates in an extremely competitive industry. The alcohol industry is saturated with well-established and highly recognized brands. Competing against giants in the industry, such as Diageo, Pernod Ricard, and Brown-Forman Corporation, will be no easy feat for Blackland Distillery.

In addition, the barriers to entry in the spirits market are high. Establishing a successful distillery requires significant capital investment, expertise in production methods, and extensive marketing efforts to build brand awareness and distribution channels. While Blackland Distillery has experienced some success in its local market, expanding its reach and gaining recognition on a national or international scale will require substantial resources and a competitive edge.

Furthermore, the company's revenue multiple of 10.34x suggests that it is currently valued at a relatively high multiple of its revenue (although fair compared to the broader crowdfunding market). This raises concerns about whether the valuation is justified and whether the company can sustain its growth trajectory to meet investor expectations.

Next Section: Executive Summary

Executive Summary

Blackland Distillery is a craft distillery based in Fort Worth, Texas, offering a diverse spirits portfolio. Their product range includes Bourbon Whiskey, Rye Whiskey, Gin, Vodka, and Texas Pecan Brown Sugar Bourbon. The distillery is committed to producing high-quality spirits using the finest local ingredients and advanced production methods.

The distillery operates in the US spirits market, which is highly competitive. However, Blackland Distillery's commitment to quality and the diversity of its product portfolio could provide it with a competitive edge. The company has already established partnerships for distribution with Southern Glazer's Wine & Spirits, Savannah Distributing Company, and KVE Drinks.

Despite being in the pre-profit stage, Blackland Distillery has shown promising revenue growth, with an annual revenue of $2,417,101 and a growth rate of 56.8%. However, the company reported a net loss in its most recent fiscal year, indicating the need for improved cost management and increased sales.

Blackland Distillery seeks to raise funds with a pre-money valuation of $25 million. The funds raised will be used for marketing, manufacturing, equipment purchases, future wages, debt repayment, and general working capital. This investment could support the company's growth plans and help it reach profitability.

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Blackland Distillery on Title3Funds 2023
Platform: Title3Funds
Security Type: Equity - Common
Valuation: $25,000,000
Price per Share: $5.00

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