Salcombe Distilling Co.

Idea

Introduction

The taste of tomorrow starts today; at Salcombe Distilling Co., we’re on a mission to bring exceptional taste to the world.

Our business was born out of a desire to create world-class spirits and a genuine and long-standing passion for the sea and lifestyle on and around the water. With 'Salcombe Gin' and our non-alcoholic spirit 'New London Light', we aim to elevate above craft, go far beyond Salcombe and create an emotive connection with our consumers, enabling them to enjoy special moments of escape and luxury.

We're proud to have:

- Carved out a high gross margin position in the ultra-premium spirits market*

- Achieved 100% growth in the past 2 years despite the challenges of the pandemic*

- Built 1% for the Ocean partnerships with leading marine conservation charities

Our brands are positioned to be distinct from other spirits brands with positioning that is ambitious, adventurous and aspirational. We aim to transcend other ‘premium’ brands, as the luxury aspirational alternative.

Substantial accomplishments to date

- Built one of the only distilleries in the world accessible by boat, in an beautiful coastal area with huge visitor footfall

- Carved out a position with an ultra-premium gin pricing strategy of >£40 a bottle, further complemented by being a leader in the hyper premium sector with our Voyager Series at £75 a bottle

- Launched Salcombe Gin and New London Light both in the UK and US (grown from 2 to 9 states since launch) as well as various other fast growing export markets

- Listings in over 1,000 stockists in the UK, including prestige venues such as Selfridges and Fortnum & Mason, alongside national listings at Waitrose and Majestic Wine

- Three Double Gold Medals at the San Francisco World Spirits Competition and Gold at the World Gin Awards for Salcombe Gin. New London Light was described as exceptional being awarded gold at the Beverage Tasting Institute in the US and also awarded the People’s Choice Spirit Mindful Drinking Award

- Built powerful partnerships, with Virgin Atlantic where New London Light is the exclusive non-alcoholic spirit in their global Clubhouses, Princess Yachts where our brands are promoted alongside their luxury yachts at international boat shows, P&O Cruises with whom we launched the world's first distillery at sea, Exeter Chiefs rugby team & Crew Clothing

- An outstanding Gin School which is the #1 thing to do in Salcombe on TripAdvisor and booked all year round

- Gross revenues of almost £5m for FY21/22 and sales quickly approaching 200,000 bottles each year

Monetisation strategy

We have four main rich revenue channels that are supported by our super-premium brand positioning for Salcombe Gin and New London Light;

1. UK Sales to wholesale, on & off-trade, 3rd party eCommerce and other corporate clients; c. 52% of revenues*

2. Direct sales to consumers (via our website, events and retail stores in Salcombe & Dartmouth); c. 26% of revenues*

3. Export and Duty-Free Sales; c. 12% of revenues*

4. Our award-winning Gin School, tasting experiences and waterside bar; c. 10% of revenues and supports our brand*

With this funding round, we intend to take advantage of the huge opportunity in the No & Low sector by capitalising on our recently extended New London Light range, both in the UK and selected export markets, by investing in promotion and sales. Alongside this, we plan to build on our luxury brand positioning of Salcombe Gin to further expand our UK Sales and leverage the excellent foundations created in the US with our distributors.

Some of our UK clients:

Use of proceeds

We intend to raise a minimum of £1m to help fund the next phase of our growth. The funds raised will be used in the following key areas:

Advertising and Promotion – 40%
Launch ambitious powerful advertising and promotional campaigns aiming to drive consumer pull through for both Salcombe Gin and New London Light

Sales and Operations Teams – 20%
Finance our enlarged sales team (and sales agency staff) to grow and support our clients alongside our internal production and operations teams supporting this growth

Product Development – 10%
Continue to develop the New London Light range of non-alcoholic products

Stock and Working Capital – 30%
Operating capital to support cashflow and stock requirements as we grow

In the event of overfunding, we plan to invest additional capital in sales & marketing to further accelerate growth.

Investor Privileges