The UK's biggest gin subscription service, transforming the way spirits lovers enjoy drinks at home.
Business overview
| Location | London, United Kingdom |
|---|---|
| Social media | |
| Website | www.craftginclub.co.uk |
| Sectors | Food & Beverage Digital B2C |
| Company number | 09405978 |
| Incorporation date | 26 Jan 2015 |
Investment summary
Business highlights
- Over 3 million Gin of the Month boxes delivered
- Rated 4.9 out of 5 from nearly 6,000 reviews
- £117m cumulative revenue achieved to Jan 2023*
- In our 9th year of trading with 82% CAGR*
Key features
Idea
Introduction
We’re on a mission to build the world’s biggest direct-to-consumer spirits brand.
When it comes to enjoying spirits at home, the choice on offer has never been bigger, more varied or more exciting. But navigating this landscape can often feel bewildering, lonely and a bit, well, dispiriting.
We believe that discerning drinkers deserve better, so since 2015 we’ve been shaking up the way they discover and enjoy new drinks.
We help them cut through the noise to find the very best bottles, increase their knowledge and expertise, and connect with a like-minded community - having a lot of fun on the way!
Crucially, we also support small, independent distillers, helping them reach a wider audience and grow their own businesses.
More than 450,000 subscribers have discovered our legendary Gin of the Month boxes. But it doesn’t stop there - we’ve also shipped over 270,000 orders from our online shop and sold tens of thousands of units of our own-brand range - including over 34,000 gin advent calendars.
Substantial accomplishments to date
2015:
- Craft Gin Club Founded by Jon Hulme & John Burke, who met at business school in Madrid (where they enjoyed a few Spanish G&Ts)
- 6,800 Gin of the Month boxes shipped in first 12 months
- Achieved £400k revenue in first year*
2016:
- Appeared on BBC Dragon’s Den, winning investment from Sarah Willingham
2017:
- 100,000th Gin of the Month box shipped
2018:
- Included in The Sunday Times Fast Track Ones to Watch list of the UK’s fastest growing businesses.
- Voted People’s Champion at the Startup Awards
- First TV ad campaign aired
- Achieved over £10M revenue*
2019:
- Introduced first own-brand products via our Gin of the Month box
- Launched Facebook Group, Craft Gin Clubbers - a forum for our members to engage with us and each other
2020:
- Opened Craft Gin Club online shop
- Launched first own-brand, large format cocktail syrup via our shop
- Hosted first online gin tasting event
- Launched first Gin Advent Calendar
- Millionth Gin of the Month box shipped
2021:
- Named by Hello! Magazine as one of the six most successful businesses to have appeared on Dragons’ Den
- Founded Family of Distillers to bolster support for craft producers
2022:
- Included in 2022 FEBE Growth 100, honouring the fastest-growing founder-led businesses in the UK
- Launched rum range and first own-branded gin liqueurs via online shop
2023:
- Over 3 million Gin of the Month boxes delivered
- Over £100M of cumulative sales to date*
- Presented 100th Gin of the Month from our Family of Distillers
- More than 450,000 subscribers welcomed to date
- Over 270,000 online shop orders shipped
*based on unaudited management accounts.
Monetisation strategy
Subscriptions:
Our core revenue comes from customers subscribing to a regular Gin of the Month delivery.
We also offer ‘add-ons’, including priority delivery and super-sized booster boxes.
Building a strong, loyal community is central to our profitability, as shown by our LTV:CAC ratio of over 3*, our thousands of five star reviews and our customer satisfaction scores of over 90%.
*based upon management data. Contribution margin for cohorts aged 48 months at Jan 23.
Online Retail:
Via our online shop, members can stock up on things they've loved from their Gin of the Month boxes and find new favourites, all with exclusive discounts. For non-members, it offers an accessible way to discover our brand and the wider world of craft spirits.
We’ve shipped over 270,000 shop orders to date with an average basket size of around £50.
More recently we have successfully expanded our brand presence across online marketplaces such as Amazon, as well as via physical retail listings for our own-brand range.
Use of proceeds
We’ve created a thriving business based around one core concept, and with limited external funding,
Your investment will help fuel our future growth across three key areas:
Core Gin Business - we will invest in back-office infrastructure and marketing to support further productization, designed to enhance the lifetime value of existing members while capturing new audiences.
New Spirits Categories - we’re applying our winning formula to other spirits, with our first rum box appearing this June and whisky tests later in the year. We want to invest in both working capital and acquisition marketing to support these exciting initiatives.
New Sales Channels - we’re looking to bring our brand to life in new places, from the UK High Street to international markets. The funds raised will help to secure the talent and working capital investments needed to get us there faster.
Key Information
Valuation:
The pre-money valuation for this campaign has been calculated on a fully diluted basis, including existing rights to equity that may convert and dilute investors in the future. In this case, the valuation on the campaign reflects issued shares and options.
Please note that the pre-money valuation of the business when taking into account only issued share capital, is £35M.
Material Debt:
The Company has the following outstanding loans:
£500,000 loan from FundOut at an interest rate of 6%. The loan is to be repaid by August 2023. The current outstanding balance is £181,714.22.
The funds raised from this investment round will not be used to repay this loan.
Gin Bond Debt:
The Company has previously raised finance through 2 retail mini-bonds (Gin Bond, and Gin Bond 2) from its customer base which are structured as debt mechanisms. The terms of each bonds are set out below:
1. In December 2019, the Company raised £1,577,167 through their first Gin Bond offering. Bond Holders were given the following terms for their investment:
- Minimum of a 4 year term.
- There were 2 products offered:
• Cash bond - Earn 8% interest per annum in cash (interest paid bi-annually).
• Box-bond - Earn an effective rate of 12% interest per annum paid monthly gin boxes.
This bond becomes repayable from 30th December 2023, or at any time at the discretion of the Company. Mini-bond holders have until the end 30th June 2023 to inform the Company of their wish to redeem their bond, if they do not request redemption the terms of the mini-bond will roll over for a further one year period.
2. In August 2022, the Company raised £3,122,334 through a second Gin Bond (Gine Bond 2) offering. Bond holders were given the following terms for their investment:
- Minimum of a 4 year term.
- There were 2 products offered :
• Cash bond - Earn 8% interest per annum in cash (interest paid bi-annually).
• Box-bond - Earn 12% interest per annum paid in in monthly gin boxes.
This bond becomes repayable from 5th August 2026, or at any time at the discretion of the Company. Mini-bond holders have until the 5th February 2026 to inform of their wish to redeem their mini-bond; if they do not request redemption the terms of the mini-bond will roll over for a further one year period.
The funds raised from this investment round will not be used to repay these mini-bonds.
Jon Hulme & Junipa Ventures Limited:
Jon Hulme (Co-Founder and CEO) lives in Jersey and provides management services through a Jersey based entity: Junipa Ventures Limited (Company Number: 134187). This arrangement has been established to satisfy Jersey residence requirements.
Junipa Ventures does not provide services to any other company, and Jon is committed on a full-time basis to providing management services to Craft Gin Club.
As part of his personal investment portfolio Jon has an advisory role at a beer subscription company which requires approximately 3 days of his time per year. In return for his services Jon has been granted share options.
Group Structure:
Investors in this round are investing into and will become shareholders of Craft Clubs Limited 09405978. The Company has one wholly owned subsidiary (Craft Clubs Bondco Plc,12245283), an SPV established to hold the Gin Bonds disclosed above.
EIS Approval:
The company has received Advanced Assurance from HMRC in November 2022 for EIS eligibility. Despite trading since 2015, the company qualifies for EIS relief under condition A. More information can be found on the HMRC website: https://www.gov.uk/hmrc-internal-manuals/ventur...
Investor Perks
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