Highly effective, U.S. Patented, Pharmacist and Nutritionist developed formulary for the elimination of hangover symptoms from alcohol consumption. This patented formula has been synthesized into a 2-gummy modality.
Current Status
Original formulary was recently refined into a gummy modality. It has been tested for efficacy and the product finalized into a 2-gummy dose. Packaging has been re-done and only final product produced in limited quantities for drinker testing and distributor samples. We have 3 commission-only sales people with approximately 300 stores for initial direct distribution and one distributor with a significant order.
Market
Well-to-do A21-40 yr olds.
We are targeting alcohol retailers, hospitality industry, c-store, vape channel and B2C through Amazon.
Problem or Opportunity
Much has been spent on the development of the patented formula and are seeking additional capital for inventory and marketing.
Solution (product or service)
This is a highly effective prevention for the vagaries of a well-earned hangover. Our price point is in the middle of the competitive space. This product is targeted to A21-40 yr. old market that wants to enjoy their evenings and be able to be perfectly productive the next morning. This helps them assure that their work performance is not hampered by the previous evening's enjoyment.
Competitors
As seen in the funding deck there are a significant number of manufacturers in the space in a variety of modalities including liquids, pills, patches, powders and gummies. Many have known side-effects most notably upset stomach for the oral consumables and skin irritation with the patches.
Advantages or differentiators
Tested, patented and developed by a pharmacist and nutritionist. Highly effective with no side effects. Anecdotal feedback suggest complaints of stomach upset with the consumables and skin irritation with patches. We have had no reports of any upset with our test subjects. Heavy drinkers are "amazed" by their morning energy. In one case subject, he had consumed a 12-pack of beer and half a bottle of tequila the night before and was energized the next morning. The following evening he repeated his consumption and couldn't make it into work the next morning because he was only provided one 2-gummy dose.
Finance
20-Pouch Retail Display
6-Pouch Consumer box
Individual pouches at check-out
Business model
Our pro forma anticipates three sell-through strategies.
Direct to Consumer - 70% margin on COGS - 10% of volume
Direct to Retailer - 50% margin on COGS - 40% of volume
Wholesaler - 30% margin on COGS - 50% of volume
First year expected $3.4m topline and $.9m NOI
Money will be spent on
Inventory, distribution/sales, trade shows, social media/website.
Offer for investor
1st year NOI estimated to be $998K on sales of $3.465mm. We are offering 5% for $200k investment.
Pricing from our contract manufacturer
Shift workers relocating the display away from the cash register
Share of voice in the vertical
Incubation/Acceleration programs accomplishment
We did not participate in an accelerator program. The original 2- ounce shot was marketed at trade shows and sold out. We have completed our testing on the gummies and need infusion to achieve full commercialization.
Won the competition and other awards
n/a
Not awards, but predecessor product sold out at retail trade shows.