Hard Selter Brand: In-House Manufacturing and Distribution, Robust Social Following, Ready for Expansion
This family-run operation in Charlotte, NC has quickly become a destination for meetings and events. The brand’s hard seltzer gained insatiable local demand, leading to increased production and regional distribution. Now a household name in bars and grocery stores, the brand plans for expansion throughout the Southeast.
OPERATIONS
The brand’s hard and non-alcoholic seltzers are crafted with house fermentation and natural purees for an unrivaled flavor experience. With a low-calorie, low-carb, and low-sugar profile, the seltzers cater to health-conscious consumers looking for an alternative to beer. Seasonal drinks help mitigate slower months in sales.
The brand has in-house manufacturing facilities and is capable of doubling barrel capacity and adding an in-house canning line. Supply and logistics are managed internally to ensure quality control and timely distribution of the seltzer products.
MARKETING AND KEY METRICS
Marketing efforts primarily focus on social media, which has helped create a strong social following. Increasing the marketing budget to bring on a dedicated team would likely boost sales. There are opportunities to develop new distribution channels and expand the brand’s presence in neighboring states.
The brand currently distributes to grocery stores and bars, with 41 Harris Teeter locations. There are plans to saturate the Charlotte and North/South Carolina markets before expanding nationally. The brand aims to increase sales exponentially by leveraging its production capacity and a well-funded sales team.
Revenue in the hard seltzer segment is expected to reach $14.12 billion by 2022, with an annual growth rate of 18.14% until 2025. The brand has witnessed sensational demand since its inception and is ripe for scale opportunities in a rapidly growing market.
The typical customer base consists of health-conscious individuals who appreciate the brand’s low-calorie, low-carb, and low-sugar seltzers. However, the brand’s diverse range of flavors attracts consumers across multiple demographics. The brand’s products are designed to satisfy every preference, including non-alcoholic alternatives.
BUSINESS MODEL & RESOURCES NEEDED
The family-run operation currently has 6 employees. To support further growth, there is a need for a full-time, dedicated marketer/event planner to increase brand consistency and attract more regular customers. Hiring a strong, well-funded sales team is also crucial for expanding the brand’s distribution reach.
THE INDUSTRY
The hard seltzer industry has revolutionized social drinking, catering to a more health-conscious generation looking for beer alternatives. The brand’s low-calorie, low-carb, and low-sugar craft seltzers have gained popularity among health-conscious individuals, but the customer base is increasingly diverse. The industry is expected to continue growing rapidly, offering significant scale opportunities.
OPPORTUNITIES TO SCALE
The brand has multiple scale opportunities, including expanding wholesale distribution, doubling barrel capacity, and adding an in-house canning line. Increasing the marketing budget, developing new distribution channels, and hiring a strong sales team are additional growth strategies. The rapid growth of the hard seltzer industry provides a favorable environment for scaling the business.
Asking Price: $1,000,000
Gross Income: $1,431,650
Cash Flow: $250,463
Year Established: 2019
Employees: 6
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