Salcombe Distilling Co.
- Investment sought:
- Equity offered:
Salcombe Distilling Co. was born out of a desire to create a world class spirit and a genuine and long-standing passion for the sea and lifestyle on and around the water.
We elevate above craft, go far beyond Salcombe and create an emotive connection with our consumers, whilst behaving like a luxury brand first and a gin second.
Since our launch in 2016, to great acclaim from trade and consumers alike, the business has achieved fantastic growth and we are proud to have:
- One of the only distilleries in the world accessible by boat
- A range of internationally award-winning gins
- A leader in the hyper premium gin sector with the exclusive Voyager Series
- A hugely popular Distillery Bar and Gin School
- A unique, highly valuable luxury brand that others aspire to
Our brand is positioned to be distinct from other spirits brands with an ownable position that is ambitious, adventurous and aspirational. We aim to transcend other ‘premium’ brands, as the luxury aspirational alternative.
We see continued opportunity within the gin market; craft gin has exploded, people's literal thirst for new, more premium and better quality gins has increased.
Simultaneously, the premiumisation of everything and democratisation of luxury, means people expect more from the brands they love. Emotion and aspiration are king for long term brand and business value.
This is something we feel is still lacking in the marketplace: The established brands are failing to elevate themselves and stay relevant, whereas many new craft gins, often have amazing stories, but they are too similar – based only on liquid development, with no real depth, innovation or differentiation.
We marry the best of both worlds – amazing liquids that people want to drink, together with an aspirational brand that people buy into, going far beyond the bottle. We intend to be to spirits what Veuve Clicquot is to champagne and have created a unique, powerful foundation and dynamic team to achieve this.
Substantial accomplishments to date
- Built one of the only distilleries in the world accessible by boat, in an astoundingly beautiful area with huge visitor footfall
- Launched our first product Salcombe Gin 'Start Point’ in Summer 2016, followed by the Voyager Series in July 2018 and our sublime pink gin, 'Rosé Sainte Marie' in Summer 2019
- Carved out a niche with an ultra-premium pricing strategy of >£40 a bottle, a leader in the hyper premium sector with our Voyager Series
- Seen a 400% revenue increase over the last 2 years to >£2M
- Two Double Gold Medals at the San Francisco World Spirits Competition, Gold at the World Gin Awards, World’s Best Gin Design and Platinum at the Beverage Tasting Institute and received amazing press coverage;
- Listings in over 1,000 stockists in the UK, with a healthy bias towards prestigious venues including Harrods, Selfridges, Harvey Nichols, Fortnum & Mason, together with extensive listings in Majestic, plus regional listings in Waitrose and Marks & Spencer
- An outstanding Gin School which is now the #1 thing to do in Salcombe on TripAdvisor and booked all year round
- Secured a partnership with P&O Cruises to develop and install what is believed to be the world’s first distillery at sea onboard their new flagship vessel, Iona. We will also create exclusive gins for sale alongside our current Salcombe Gin products to be stocked at duty-free outlets across the fleet
- Secured our first order for the Chinese market
- Distribution deals agreed for our US launch in 2020
We have three main rich revenue channels that are supported by our super-premium brand positioning;
1. Sale of our gins and products to wholesale, on & off-trade, export and direct customers (the latter via our website, events and Victuallers shop), in total providing c. 75% of our revenues
2. Our award-winning Gin School experiences which delivers c. 15% of our revenues and supports our brand
3. Our waterside tasting bar contributing c. 10% of our revenues
Most recently, we have added consultancy revenues through an exciting initial 3-year contract with P&O Cruises that will see us create a number of gins for them for sale onboard and develop a gin masterclass concept for guests to enjoy across their fleet.
Our aim with this investment round is to set Salcombe Gin further apart from competitors by an ambitious break into the US market and also launch a low alcohol gin in all regions to take advantage of a fast growing new market opportunity.
A selection of some of our clients:
Use of proceeds
We intend to raise a minimum of £800k to help fund the next phase of our growth. The funds raised will be used in the following key areas:
Product Development – 10%
Development and launch of new low alcohol gin to take full advantage of a growing opportunity in the marketplace
Marketing – 20%
Launch ambitious powerful advertising and promotional campaigns in UK and US to drive consumer pull through
Sales Team Growth – 40%
Double our UK sales team and create an entirely new team ‘on the ground’ in the US
Production & Operations – 30%
Acquisition of new additional distillation and manufacturing equipment to cope with increased demand, together with operating capital to support cashflow requirements in the initial years following this raise, as we re-invest aggressively to drive growth.
In the event of overfunding, we will invest additional capital in sales & marketing to further accelerate growth.
Please note that the company has a £230k business loan with monthly repayments. The term of the loan is March 2021. Funds raised will not be used to repay this loan.