Drink Monday

Growth Stage

Drink delicious cocktails, socialize without stress, and wakeup hangover free.

Analytics

Raised to Date: Raised: $856,423

Aggregate Commitments $

Platform

Republic

Start Date

02/03/2021

Close Date

04/16/2021

Min. Goal

$25,000

Max. Goal

$1,070,000

Min. Investment

$150

Security Type

SAFE

Funding Type

RegCF

Series

Pre-Seed

Valuation Cap

$7,000,000

Discount Rate

0%

Rolling Commitments $

Status
Funded
Reporting Date

04/30/2021

Days Remaining
Funded
% of Min. Goal

3,426%

% of Max. Goal

80%

Likelihood of Max
Funded
Avg. Daily Raise

$11,895

Momentum
Funded
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Location

Carisbad, California

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2C

Margin

Medium

Capital Intensity

High

Business Type

Life Style

Drink Monday, with a $7 million valuation cap, is raising crowdfunding on Republic. The company manufactures and sells non-alcoholic drinks that deliver a modern cocktail experience. Monday Gin of Drink Monday allows people to enjoy cocktails, socialize, and wake up feeling fresh without any hangover. Christopher Boyd founded Drink Monday in June 2019. The current crowdfunding round has a minimum target of $25,000 and a maximum target of $1,070,000, and the proceeds will be used to launch new products, grow, expand internationally, and increase the overall revenue. Drink Monday reported $1.38 million in sales in its first nine months in the market and projects to reach $5.3 million in revenue in 2021.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$0

$0

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$0

$0

Accounts Receivable

$0

$0

Total Assets

$0

$0

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 02/03/2021
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

Fewer and fewer Americans consider alcohol to be a necessary component of a night out. The trend toward sobriety is rapidly gaining steam. There are “hashtaggable terms,” “$15 artisanal mocktails,” and more hallmarks of a movement made mainstream. 

We recently concluded “Dry January,” which started as a public health campaign in the U.K. and has grown into an international pledge to eliminate alcohol and experience the benefits of sobriety for the first month of the year. In 2021, one in seven Americans reported that they’d be eliminating alcohol in January, a record high. Among Dry January participants, 79% reported that they want to be healthier, and 72% cited an intention to reduce overall alcohol consumption. 

With so many Americans reaching for alternatives to traditional beer, wine, and cocktails, an entire category of no- and low-alcohol beverages is burgeoning. Drink Monday is an emerging leader in this new market. Drink Monday is a no-alcohol gin brand helping customers “drink delicious cocktails, socialize without the stress, and wake up hangover free.” Handmade in small batches in a Southern California distillery, Monday Gin has the distinctive juniper taste of gin without any sugar or calories, fitting perfectly into any diet. The product launched last year and generated $1.38 million in sales during its first nine months on the market. 

Drink Monday’s current Republic raise has been rated a Deal to Watch by the KingsCrowd investment team. 

Price

Drink Monday is raising a Crowd SAFE at a $7 million valuation with no discount. This is a fairly reasonable price, particularly when compared to other overvalued crowdfunding campaigns from DTC brands with much less revenue. At $1.38 million in revenue for 2020, investors are receiving a fair revenue multiple on a business with decent brand recognition and potential for growth. However, the lack of discount is somewhat unusual and less favorable for investors’ prospects. All together, the price score for Drink Monday is high.

Market

The no- and low-alcohol market is growing rapidly, thanks to increasing evidence that Americans — particularly younger Americans, including millennials and Gen Z — are less and less interested in heavy drinking. A recent report indicates that consumption of no- and low-alcohol beverages is expected to increase 31% across 10 major markets in the next four years. Americans spent 34.8% more on nonalcoholic beer specifically in 2020, bringing the market size to $1.7 billion. Overall, the nonalcoholic beverage market is still niche when compared to beer, wine, and spirits, but it is growing explosively. Drink Monday has the opportunity to own the nonalcoholic spirits niche within this expanding space, and thus its market rating is above average.

Team

Drink Monday was co-founded by Chris Boyd (CEO), Ben Acott (CMO), and Marcelo Kertesz (Chief Creative), whose 60 years of combined professional experience — mostly in entrepreneurship and branding — is undoubtedly key to the company’s success. 

Boyd received a business administration degree in the early 2000s and then worked at Vertex Pharmaceuticals in a variety of roles for almost 10 years. He subsequently founded a competitive events business and a startup consultancy before launching Drink Monday in late 2018. Acott began his career in digital marketing, founding a marketing agency and later serving a brief stint at Facebook before launching his own e-commerce wine brand in Australia. He subsequently joined MANSCAPED as Senior Vice President of Product & Growth, scaling the company for two years before leaving to focus full-time on Drink Monday. Kertesz has had more than 20 years of experience in creative design and marketing, founding or serving in leadership roles at various agencies. He currently works as Senior Vice President of Content, Brand & Design for MANSCAPED and appears to work part-time for Drink Monday. 

Overall, the Drink Monday team is extremely well-prepared to grow and scale a memorable DTC brand, and their extensive experience is reflected in the company’s excellent aesthetic and marketing content. The three co-founders have expertise as founders, have witnessed rapid growth at a leading DTC brand, and even have some experience in the alcohol industry specifically. Therefore, Drink Monday’s team score is very high. 

Differentiators

It’s perennially difficult for DTC brands to truly differentiate themselves, as their products are typically not strongly proprietary and consumers are liable to choose among several similar brands within a category. Drink Monday falls into this same trap. While the company’s flagship nonalcoholic gin product is very strongly branded with distinctive labeling and positive customer reviews, there are several other nonalcoholic beverage companies that also offer pretty labels and strong testimonials. In addition, many of these competitors offer several varieties of nonalcoholic liquor, from gin to tequila and whiskey. Drink Monday currently offers just one product — nonalcoholic gin — leaving consumers liable to become loyal to a different brand that can better serve their wide variety of tastes. Therefore, Drink Monday’s differentiation score is its lowest across all five metrics. 

Performance

Drink Monday launched its product less than a year ago and has already gained major traction. After an oversubscribed Kickstarter campaign, Monday Gin debuted in April 2020. It generated $1 million in sales after just 200 days and $1.38 million total between April and the end of 2020. Unfortunately, Drink Monday hasn’t shared full financial data from 2020, so all investors have to go on is topline revenue. It’s unknown whether the company is turning a profit. The company reports that each bottle sold generates a profit, but that assertion assumedly covers only COGS, not overall expenses. 

Outside of financials, Drink Monday is showing signs of long-term viability. The repurchase rate is 32%, which is much higher than average in e-commerce, and that repurchase rate drives a $172 customer lifetime value that is only expected to increase in 2021. The company also leads in site traffic and conversion rate among peers on Shopify. 

Drink Monday has done very well over the last nine months. However, 2020 financials aren’t available, and the ratio between marketing spending and revenue is an important missing data point. Therefore, Drink Monday’s performance rating is high but not quite as high as ratings in other areas.

Bearish Outlook

Drink Monday’s biggest risk is its lack of product diversity. The company has been selling one product and one product only for nine months. While that product is doing very well, Drink Monday could be losing ground to nonalcoholic beverage competitors who are moving faster to introduce tequilas, whiskeys, and a variety of other liquors to better satisfy any and all consumer needs for nonalcoholic spirits. 

In addition, it’s not clear how much Drink Monday is spending on consumer acquisition cost (CAC) compared to lifetime value (LTV). The CAC:LTV ratio is a critical one for DTC companies, and all too often the ratio is unsustainable. If Drink Monday is spending too much to acquire customers, its performance might not be as rosy as it appears from 2020 revenues alone. 

Between these two risks, it could be too soon to tell whether Drink Monday can lead the nonalcoholic beverage category. 

Bullish Outlook

Drink Monday generated $1.38 million in revenue in its first nine months after launch, and that figure is impressive enough to spur optimistic predictions about the company’s future. It’s not often that a DTC brand finds product-market fit so quickly. Drink Monday has clearly developed a brand and product that resonates with a growing segment of consumers interested in the sobriety and moderation trends. 

The company’s success is likely due to its deeply experienced founding team. CEO Chris Boyd and his two co-founders have very strong expertise in entrepreneurship, brand building, and ecommerce marketing, which is reflected in Drink Monday’s beautiful website and packaging and its strong performance on Amazon. 

Drink Monday is planning to launch an additional product line — nonalcoholic whiskey — in coming months and also has its eye on premixed, canned mocktails featuring its nonalcoholic gin. Introducing these new products to a loyal, frequently-repurchasing customer base will likely create more value very quickly, positioning the company even better for a potentially lucrative exit in the next two to three years.

Executive Summary

Americans of all ages are realizing that it’s no fun to wake up with a hangover and that traditional alcoholic beverages are packed with sugar that doesn’t help the waistline. They’re more and more interested in reducing their alcohol consumption or eliminating it entirely, aided by a growing selection of nonalcoholic beverages that mimic boozy standards without the alcohol content and calories. 

Drink Monday is at the forefront of this no- and low-alcohol trend. The company has developed a product that a full third of customers like so much that they repurchase, and buzz around Drink Monday’s beautifully-branded launch drove $1 million in sales in just 200 days. All of this progress was spearheaded by Drink Monday’s deeply experienced founding team, which is leveraging their expertise in startups and ecommerce to pilot the company toward profit and an eventual exit. Therefore, Drink Monday has been rated a Deal to Watch. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com.

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Drink Monday on Republic
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Platform: Republic
Security Type: SAFE
Valuation: $7,000,000

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