Finances + Canned Cocktails Update - July 21st, 2022

Finances Update

First order of business is finances.  As we mentioned in our previous update, the state of our business's cash position is very dire.  In April and May our cash bleed was $85k and $80k.  We are continuing to track a January, 2023 Break Even Point, but again do not have the cash reserves to cover the losses for the next six months and in fact did not have the cash reserves to cover the losses from June.  

June Bleed: 
We are thrilled to announce that we were able to drastically increase our outside sales month over month from May to June, while simultaneously reducing our overhead expenses to help weather the storm.  In June we were able to reduce the bleed to a loss of $37,396.49.  

Cash Position: 
To survive June/July we took an additional $165k advance against our direct to consumer sales.  With the bleed from June/July this has left us with $117k cash on hand.  Assuming nothing changes, this capital should support the business's losses through August.  

Canned Cocktails Update:
We have made some major strides in the last month towards launching our lineup of Canned Cocktails.  Last week we received our final recipes from our co-packers for our initial four canned cocktails. 

We were able to submit these recipes to the TTB last week and received formula approval for all of our recipes as of yesterday.  

We are now awaiting COLA approval for our labels, and upon approval will be able to order our labels and boxes, which have a 3-6 week lead time before sending our first batches to market.  

We are targeting our first run of August 8-19 and beginning to sell through our existing distribution network the week following our first run.  
CAE Permits
Simultaneously we are in the final stage of receiving our CAE permits from Mexico to begin importing and packaging Tequila.  This tequila will be used both for our Tequila Margarita, and will also be packaged in a 750ml format to begin being sold through our retail facility and used in our bar.  
Our Plan To Fund The Losses + Startup Costs
Unfortunately, it will cost us about $50k in startup costs to complete our first batches of canned cocktails.  We are unable to tap into our cash reserves to fund this, so we will need to fund this through new revenue streams/equity.

If you are interested in purchasing a private barrel of whiskey now is the time to do it.   
Private Barrel #13 - Five Pounds - 5 gal
Private Barrel #13 - Five Pounds - 5 gal
Mezzanine Financing: 
Finally, although we have not actively raised any convertible debt since 2019, our mezzanine financing is still open for interesting parties.  This financing is sold in $25k units at 8% interest per unit, and has an additional 1k share warrant per unit purchased.  

If you are interested in purchasing convertible debt please email me directly at
If you are interested in purchasing equity in the company please do so through our WeFunder campaign.  Additional info can be found here:
Back to blog

Leave a comment