Michael Waltrip Brewing Company

Michael Waltrip Brewing Company

Early Stage

Fun, Flavorful Craft Beer Brand

Fun, Flavorful Craft Beer Brand

Overview

Raised to Date: Raised: $296,323

Total Commitments ($USD)

Platform

StartEngine

Start Date

07/12/2023

Close Date

10/10/2023

Min. Goal
$9,999
Max. Goal
$1,234,997
Min. Investment

$250

Security Type

Equity - Common

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.55

Pre-Money Valuation

$20,309,250

Rolling Commitments ($USD)

Status

Active

Reporting Date

09/30/2023

Days Remaining

10

% of Min. Goal

2,964%

% of Max. Goal

24%

Likelihood of Max
unlikely
Avg. Daily Raise

$3,704

# of Investors

216

Momentum
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Year Founded

2019

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

Low

Location

MCKINNEY, Texas

Business Type

Growth

Michael Waltrip Brewing Company, with a valuation of $20.31 million, is raising funds on StartEngine. It is a beer brand launched by two-time Daytona 500 Champion Michael Waltrip that is fun and flavorful. The beer brand makes unique flavors of handcrafted beer, including Two-Time Blonde and Bristol Sunshine, and is also involved in music festivals, licensed products, and a franchise strategy. Michael Waltrip Brewing Company aims to open 100 Michael Waltrip Taproom branded sports-themed restaurants and launch a line of food items in the grocery channel. Michael Curtis Waltrip founded Michael Waltrip Brewing Company in September 2019. The current crowdfunding campaign has a minimum target of $9,999.05 and a maximum target of $1.23 million. The campaign proceeds will be used for company employment, marketing, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$665,058

$229,730

COGS

$456,782

$176,586

Tax

$0

$0

 

 

Net Income

$-696,759

$-1,291,131

Summary Balance Sheet

FY 2022 FY 2021

Cash

$88,131

$231,625

Accounts Receivable

$2,816

$16,960

Total Assets

$323,344

$478,271

Short-Term Debt

$595,729

$146,177

Long-Term Debt

$0

$1,275,000

Total Liabilities

$595,729

$1,421,177

Financials as of: 07/12/2023
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Synopsis

Founded by two-time Daytona 500 champion Michael Waltrip, Michael Waltrip Brewing Company is a beer brand that combines a love for cars, music, family, and friends with a flavorful and fun approach to craft beer. The company's easy-to-drink offerings are designed to appeal to a broad range of beer enthusiasts and casual drinkers alike. With unique flavors such as Two-Time Blonde and Bristol Sunshine, the brand embodies a celebratory and down-to-earth lifestyle.


In addition to its craft beer line, Michael Waltrip Brewing Company has expanded its brand to include music festivals and licensed products. Moreover, the company has an ambitious franchise strategy to open 100 Michael Waltrip Taproom-branded sports-themed restaurants across the country. These establishments will serve the company's craft beers and provide a unique dining and entertainment experience for patrons.


Further, the company plans to launch a line of food items in the grocery channel, creating an additional revenue stream and strengthening the brand's presence in the market. The current crowdfunding campaign will provide the necessary funds for company employment, marketing, and working capital, supporting the company's growth and expansion plans.


With a pre-money valuation of $20.31 million, Michael Waltrip Brewing Company presents an interesting investment opportunity in the food and beverage industry. The company's unique brand and comprehensive growth strategy could position it for success in the competitive craft beer market.

Next Section: Price

Price

Michael Waltrip Brewing Company is currently valued at $20.31 million and is raising funds on StartEngine.

While the company has shown traction with $665,000 in sales in 2022 and a signed agreement for 100 taproom sports-themed restaurants, it is important to note that the valuation of Michael Waltrip Brewing Company appears to be on the higher side. The revenue multiple, the valuation divided by the annual revenue, is approximately 30.54. This multiple is relatively high for a company at this stage of development.

Investors should be cautious when considering the valuation of Michael Waltrip Brewing Company. Although the company has partnerships and strong retail accounts, the current valuation may not fully align with its revenue and growth potential. It would be prudent for investors to carefully evaluate the company's financial projections and growth strategy before making an investment decision.

Next Section: Market

Market

Michael Waltrip Brewing Company operates in the US beer market, a mature and highly competitive industry. Despite the competition, the market is substantial, with a size estimated at $120.9 billion, and is growing at a moderate pace, with a CAGR of 6.8%. This presents opportunities for new entrants, particularly those with a unique selling proposition, to carve out a niche for themselves. Michael Waltrip Brewing Company is attempting to do this through its association with two-time Daytona 500 Champion Michael Waltrip and the production of handcrafted beers with distinctive flavors.

However, the market is dominated by large, established players such as Anheuser-Busch, D. G. Yuengling, and Son Inc., The Boston Beer Company, and Sierra Nevada. These companies have significant advantages in brand recognition, distribution networks, and scale of operations. Therefore, while the market potential is large, the competition is significant, and it would require a strong and differentiated product offering to gain market share.

In addition, the regulatory environment for the beer market is high. Producers must navigate a complex web of federal, state, and local regulations concerning production, distribution, and sales. These regulations can pose barriers to entry and expansion, particularly for smaller companies.

Michael Waltrip Brewing Company's expansion plan involves opening themed restaurants and launching a line of food items in grocery channels. This diversification could potentially open up additional revenue streams for the company. However, these markets also have their own competitive and regulatory challenges.

Overall, while the market size and growth present opportunities, Michael Waltrip Brewing Company operates in a competitive and tightly regulated industry. Its success will likely depend on its ability to differentiate its offerings, build a strong brand, and successfully navigate regulatory challenges.

Next Section: Team

Team

Michael Waltrip Brewing Company was founded by CEO Bryan Sperber and Chief Fun Officer Michael Waltrip. Sperber served as the President of Phoenix International Raceway for over 20 years but does not have direct experience in the food & beverage space. On the other hand, Waltrip is a two-time Daytona 500 champion and a well-known figure in the racing world. While he may not have direct managerial experience, his fame and expertise in the racing industry bring valuable brand recognition and credibility to the company.

The Michael Waltrip Brewing Company team is small but dedicated. Sperber and Waltrip are supported by a team of individuals with expertise in marketing, sales, and operations. The team is focused on executing the company's vision of creating a down-to-earth lifestyle beer brand that celebrates cars, music, family, and friends.
With Sperber's industry experience and Waltrip's racing background, the Michael Waltrip Brewing Company team has the knowledge and passion to drive the company's growth. Their focus on creating a fun and flavorful beer brand and their expansion plans position them well in the competitive US market.

Next Section: Differentiation

Differentiation

Michael Waltrip Brewing Company enters the highly competitive beer market, focusing on offering a fun and flavorful beer brand. Led by two-time Daytona 500 Champion Michael Waltrip, the company aims to differentiate itself through its unique flavors of handcrafted beer, including Two-Time Blonde and Bristol Sunshine.
While Michael Waltrip Brewing Company has a strong brand presence and a well-known founder, it faces significant competition from established players in the beer industry, such as D. G. Yuengling and Son Inc., The Boston Beer Company, and Sierra Nevada. These competitors have already established their positions in the market and have a wide range of beer offerings. The company also faces indirect competition from industry giants like Anheuser-Busch Companies.

One potential differentiation point for Michael Waltrip Brewing Company is its association with Michael Waltrip, a well-known figure in the racing world. This association could help attract fans and enthusiasts interested in the intersection of sports and beer. However, the company's differentiation level in terms of quality and price is low, as it is similar to other beer brands in the market.

To succeed in this highly competitive industry, Michael Waltrip Brewing Company must develop a strong marketing strategy to create awareness and preference for its brand. The company's focus on opening taproom sports-themed restaurants and launching a line of food items in the grocery channel could help expand its reach and generate additional revenue streams. However, it will need to carefully navigate the challenges and barriers to entry in the industry, including the high level of competition and the need to establish a strong distribution network.

Overall, while Michael Waltrip Brewing Company has a recognizable founder and a unique brand positioning, it must continue to differentiate itself to stand out in the highly competitive beer market.

Next Section: Performance

Performance

Michael Waltrip Brewing Company has made significant progress in its early stages. In 2022, the company generated $665,000 in sales, showcasing its ability to attract customers and generate revenue. The company has also secured major customers, including Walmart, Food City, Total Wine, Texas Roadhouse, and Buffalo Wild Wings. These partnerships with well-known retailers and restaurants provide a strong foundation for future growth.

In addition to its retail accounts, Michael Waltrip Brewing Company has signed an agreement to open 100 taproom sports-themed restaurants. This expansion strategy will allow the company to establish its brand further and reach a wider audience. The combination of retail distribution and taproom restaurants positions the company for success in the competitive beer market.

The strong sales performance and major customer partnerships indicate a positive trajectory for Michael Waltrip Brewing Company.
Overall, Michael Waltrip Brewing Company has made significant strides in its early stages, with strong sales, major customer partnerships, and an expansion strategy in place. With a focus on fun and flavorful beers, the company is well-positioned to capture a share of the highly competitive beer market.

Next Section: Risk

Risk

Investing in Michael Waltrip Brewing Company carries risks due to the highly competitive nature of the beer industry. The company faces significant competition from well-established players such as Anheuser-Busch Companies, D. G. Yuengling and Son Inc., and The Boston Beer Company. These competitors have a strong market presence and brand recognition, making it challenging for Michael Waltrip Brewing Company to gain market share. Additionally, the high barriers to entry in the beer industry pose a risk to the company's growth and profitability.

Another risk factor is the company's financial performance. Michael Waltrip Brewing Company has reported negative net income in recent fiscal years, indicating potential challenges in achieving profitability. The company's monthly burn rate is relatively high, which may put additional pressure on its financial resources.

Furthermore, Michael Waltrip Brewing Company's valuation may be considered overvalued, which raises concerns about potential returns for investors.

While Michael Waltrip Brewing Company has partnerships and a unique product offering, including handcrafted beers with distinct flavors, success in the competitive beer industry requires strong marketing efforts, effective distribution channels, and customer loyalty. The company's ability to execute its franchise strategy and open sports-themed restaurants will also be critical for its long-term success and revenue growth.

In summary, investing in Michael Waltrip Brewing Company carries risks due to intense competition, potential overvaluation, and the need for effective marketing and distribution strategies. Prospective investors should carefully evaluate these risks and consider the company's ability to differentiate itself and capture market share in a highly competitive industry.

Next Section: Bullish Outlook

Bullish Outlook

Michael Waltrip Brewing Company has a unique position in the craft beer market with its flavorful and fun approach to brewing. With the backing of two-time Daytona 500 champion Michael Waltrip, the company brings a strong brand presence and a dedicated following.

In addition to its beer offerings, Michael Waltrip Brewing Company has diversified its revenue streams through music festivals, licensed products, and a franchise strategy. This multi-channel approach allows for increased brand exposure and potential for growth.

While the beer industry is highly competitive, Michael Waltrip Brewing Company stands out with its strong branding and unique flavor profiles. The company's focus on a fun and flavorful approach resonates with consumers looking for an enjoyable drinking experience. With the involvement of Michael Waltrip, a famous founder in the racing world, the brand carries a level of authenticity and credibility that can attract a dedicated customer base.

Overall, Michael Waltrip Brewing Company has the potential for success in the craft beer market with its strong brand, unique flavors, and diversified revenue streams. With the right execution and continued expansion of its taproom restaurants and grocery channel products, the company can capture a larger share of the US beer market and drive revenue growth.

Next Section: Bearish Outlook

Bearish Outlook

Michael Waltrip Brewing Company faces significant challenges in the highly competitive beer market. While the company has garnered attention with its association with two-time Daytona 500 Champion Michael Waltrip and its fun and flavorful craft beer offerings, it operates in an industry dominated by prominent players such as Anheuser-Busch Companies and fierce competition from direct competitors like D. G. Yuengling and Son Inc., The Boston Beer Company, and Sierra Nevada.

Furthermore, the company reported a net loss of $696,759 in its most recent fiscal year, indicating financial challenges and potential difficulties in achieving profitability.

While the company aims to expand its presence through a franchise strategy and opening 100 sports-themed restaurants, there is no evidence of a proven track record in the food and beverage industry.
Furthermore, the company's valuation of $20.31 million appears to be inflated, considering its limited revenue and profitability. Investors should consider the company's growth potential and ability to compete effectively in a crowded market before making investment decisions.

Next Section: Executive Summary

Executive Summary

Michael Waltrip Brewing Company is a lifestyle beer brand that celebrates a fun approach to cars, music, family, and friends. The company offers easy-to-drink craft beers and has plans to expand its reach through music festivals, licensed products, and a franchise strategy. The company aims to open 100 Michael Waltrip Taproom-branded sports-themed restaurants nationwide. It has already secured strong retail accounts, including Walmart, Food City, Total Wine, Texas Roadhouse, and Buffalo Wild Wings.


The company was founded by two-time Daytona 500 Champion Michael Waltrip and has already achieved $665,000 in sales in 2022. It has also signed an agreement for 100 taproom sports-themed restaurants. However, the company is not yet profitable, with a net income of -$696,759 in the most recent fiscal year. Despite this, the company's valuation is relatively high at $20.31 million, which may concern potential investors.


The company operates in the highly competitive US beer market, which is dominated by large players like Anheuser-Busch Companies, D. G. Yuengling and Son Inc., The Boston Beer Company, and Sierra Nevada. Despite the competition, Michael Waltrip Brewing Company has managed to carve out a niche with its unique flavors of handcrafted beer and its association with a well-known personality in the sports world.


The company is currently raising funds on StartEngine, with the proceeds to be used for company employment, marketing, and working capital. Given the company's unique value proposition, strong retail partnerships, and ambitious expansion plans, it presents an interesting investment opportunity in the food and beverage industry.

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Michael Waltrip Brewing Company on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $20,309,250
Price per Share: $1.55

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