0Overview
What started as a nice amenity for guests at the award-winning boutique hotel Acre Resort in San Jose del Cabo, Mexico has quickly turned into a growing brand gaining industry recognition and customer fanfare across the U.S. In just less than a year (2020), amidst a global pandemic, the emerging spirit brand has managed to generate roughly $100,000 in sales, demonstrating both the brand’s likability, as well as the market’s hunger for quality mezcal.
Originally inspired by the grounded, natural beauty of the Cabo resort, the La Tierra de Acre Mezcal brand captures the same Mexican authenticity, spiritual connection to nature and appreciation for life that the property evokes. The brand owners set out to source the best small-batch Mezcaleros, who for generations have been sustainably perfecting their craft throughout the most rural and beautiful regions of Mexico.
The result is a collection of four varietals (Espadín, Cenizo, Tobalá, Tepextate) showcasing the versatility and the beauty of the agave plant handcrafted in Oaxaca and Durango, Mexico. Every bottle of La Tierra de Acre Mezcal is an uncompromising reflection of the creators’ heritage and the land from which they came.
The Problem
The explosion in popularity of mezcal has been great for the brands in the category, however the very plant needed to produce Mezcal is potentially becoming endangered by illegal harvesting.
Unfortunately, more and more unethical brands continue to get into the space to capture the “coolness” of a mezcal brand versus a dedication to the product and the people whose livelihoods have depended on it for generations.
The Solution
La Tierra de Acre Mezcal exclusively works with small-batch, multi-generational family Mezcaleros (makers of mezcal) in Mexico who focus on sustainability and the heritage of the craft above all else.
GIF
We currently work with two families who for generations have been sustainably perfecting their crafts throughout the most rural and beautiful places in Mexico, pouring their hearts and souls into their mezcals.
The Market
Consumers’ taste buds have increasingly become more sophisticated as the drinking public have been leaving behind low- and medium-grade spirits in favor of high-end, premium products (source) . . . particularly when it comes to Mezcal! (source).
As of 2018, the global Mezcal market was worth $277mm and is expected to continue to grow significantly over the next 10 years at a CAGR of 14.5% reaching $818mm by 2027. (source).
Our Traction
The brand has already generated approximately $100,000 in combined sales in the US and Mexico since the soft US launch in 2020, despite the challenges created by the COVID-19 pandemic. Possibly even more impressive than the sales figures themselves is the recognition received by the top spirits competition in the world. At the 2020 San Francisco World Spirits Competition, La Tierra de Acre Mezcal received the highest honor of a Double Gold medal and three Silver medals across all four products.
In addition to the formal competition, renown spirits expert Anthony Dias Blue awarded La Tierra de Acre Mezcal a 95 / 100 in the June edition of Tasting Panel magazine, the highest rating for any mezcal brand (source).
The Business Model
Direct-To-Consumer:
In an effort to streamline the process, we sell our portfolio of mezcals, which includes four varietals ranging from $50-$140 per bottle, direct to our customers via our website. The DTC route allows the brand to maximize profit and provides a memorable brand experience to the customer.
Distribution:
Each U.S State has its own regulations and requires a local distribution partner to bring the product to market. Currently, we use Park Street Imports in California, which allows us to sell to restaurants, bars and liquor stores throughout the state. Beginning in early 2021, we will begin distributing in Nevada through West Coast Beverages allowing us to have a presence in Las Vegas, one of the country’s top liquor markets. As we raise money and grow out the sales team, we will establish additional distribution partners in other key markets like Miami, Austin, New York and more.
Sales:
Like any product, it needs to be sold. As we expand into new markets, a sales team will be built covering each area. In addition to dedicated salespeople working to place La Tierra de Acre Mezcal into the top restaurants, bars and liquor stores, we will continue to use our network of brand ambassadors to support the sales team’s efforts.
GIF
PR & Marketing:
La Tierra de Acre Mezcal employs a national PR & Marketing team tasked with building brand awareness among target consumers leading to increased demand and revenue. In addition to traditional PR, La Tierra de Acre Mezcal will continue to utilize social media platforms to amplify our messaging and further drive consumer demand. With the funds raised, we will be able to execute effective activations in key markets to educate and entice consumers, which may include tastings, sponsored events, influencer marketing and in-store promotions.
How We Are Different
We currently work with two amazing mezcaleros:
The Burciaga Family:
The wild Cenizo plant, which grows in abundance throughout the Durango region, has sustained the Burciaga family for decades, yet it really is their stringent production methods that has led to their continued success and now, La Tierra de Acre Mezcal’s award-winning Cenizo Mezcal.
Sustainability: Jorge repurposes the waste of his mezcal production into adobe bricks that he donates to the local town. Our labels are also made of repurposed agave fibers.
The Cruz Family:
Honorato Cruz and his family hail from the 500-person indigenous Zapotec village of Santa Ana del Rio, Oaxaca where nearly every member of this humble town has worked with agave for decades, building an encyclopedic knowledge of mezcal production passed down through the generations. The Cruzes craft their mezcal using only traditional methods and the highest quality agave—including the two rare species Tobalá and Tepeztate, which are used to make La Tierra de Acre Mezcal’s high-end sipping mezcals.
Sustainability: To ensure the sustainability of the rarer Tobalá and Tepeztate agave plants, Honorato allows at least 50% of the plants to reach full maturity in order to be pollinated by the local bat population. This unorthodox process fosters biodiversity and ensures a future abundance of the plant.
At La Tierra de Acre Mezcal, we recognize that it wouldn’t be possible to make this wanderlust- and connection-inspiring spirit without the generosity of the earth—which is why we’re invested in not only the livelihood of our brand, but also that of our mezcaleros, their communities and the land on which they live.
The Vision
Our customers are our greatest asset. We have an aggressive growth plan over the next three years to become a truly national brand utilizing and inspiring our core customer base through a dedicated network of brand ambassadors in each market.
La Tierra de Acre Mezcal will become more than just another spirit brand as it morphs into a true lifestyle brand - merchandise, festivals, travel, etc. This also includes the expansion of Acre Baja resort into the U.S., where we would create a branded La Tierra de Acre Mezcal lounge with curated experiences at the retail level.
OUR LEADERSHIP
Two of the brand’s founders are the original creators of the stunning Acre Baja Resort, where La Tierra de Acre Mezcal was conceived. What started as an idea between friends was built into an award-winning hotel and restaurant with creative vision, dedication, and grit. They cleverly used the resort to initially introduce La Tierra de Acre Mezcal to an A-list resort crowd before expanding it to the U.S. mainstream. It is this same ingenuity that will carry the brand forward.
We all have a wide variety of backgrounds from finance to hospitality. None of us are industry insiders. We don’t play by the traditional rules. We think outside the box and pull from an array of adventures and experiences to chart the best course.
Why Invest
The brand’s alliance with a popular Cabo resort has provided a baseline built-in audience. The resort’s Instagram alone has 46k followers, which is often leveraged on behalf of the Mezcal. The resort hosts Mezcal tastings, as well as offers La Tierra de Acre Mezcal at every on-property wedding and event. With your investment, we hope to take the popularity of the resort and the brand and amplify it across the US. We believe the brand’s potential growth can already be seen by the revenue generated in 2020 during a pandemic. Together, we aim to take that Cabo experience and expand it to every cocktail glass in the U.S.
A responsible enterprise, we are invested in supporting the mezcaleros and land that make our product possible. With La Tierra de Acre Mezcal’s spirit of exploration and adventure, we believe we can do anything.
This remarkable mezcal claimed a double gold medal at the 2020 San Francisco World Sprits Competition. A nose of agave and earth gives way to a creamy texture overlaying a smooth, elegant palate of pepper, spice, and toasty agave; rich, lush, and very long
At the 20th Annual San Francisco Spirits Competition, held on March 13th, 2020, newcomer Acre Mezcal scored big earning the competition's highest honor of "Double Gold" for its Cenizo Mezcal, while the brand's other three varietals all earned Silver.
The Most Amazing Treehouse Hotels to Inspire Wanderlust
Company | : | Acre Mezcal Holdings Corp. |
Corporate Address | : | 11601 Wilshire Blvd. Suite 2480 , Los Angeles, CA 90025 |
Offering Minimum | : | $9,999.64 |
Offering Maximum | : | $1,499,995.70 |
Minimum Investment Amount(per investor) | : | $248.50 |
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 1,006 |
Maximum Number of Shares Offered | : | 150,905 |
Price per Share | : | $9.94 |
Pre-Money Valuation | : | $9,995,296.22 |
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Company Perks*
Volume-Based
$75,000+
10% bonus shares + Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice in a personally engraved box delivered to your door (if in US). Participation in a virtual cocktail class with our partners “Las Mezgals”. Weekend trip to Acre Baja resort to meet the mezcal team, enjoy Two free nights in an Acre Baja Villa, explore the property and share our vision. Airfare not included. Plus 1 guest allowed.
$50,000
5% bonus shares + Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice in a personally engraved box delivered to your door (if in US). Participation in a virtual cocktail class with our partners “Las Mezgals”. Weekend trip to Acre Baja resort to meet the mezcal team, enjoy Two free nights in an Acre Baja Villa, explore the property and share our vision. Airfare not included. Plus 1 guest allowed.
$25,000
5% bonus shares. Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice in a personally engraved box delivered to your door (if in US). Participation in a virtual cocktail class with our partners “Las Mezgals”. Two free nights in an Acre Baja Villa. Plus 1 guest allowed.
$15,000
3% bonus shares. Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice in a personally engraved box delivered to your door (if in US). Participation in a virtual cocktail class with our partners “Las Mezgals”. Two free nights in an Acre Baja Treehouse. Plus 1 guest allowed.
$10,000
Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice delivered to your door (if in US). Participation in a virtual cocktail class with our partners “Las Mezgals”. Two free nights in an Acre Baja treehouse. Plus 1 guest allowed.
$5,000
Acre Mezcal branded mask, tote and copitas. 1 Acre Mezcal bottle of your choice delivered to your door (if in US). Two free nights in an Acre Baja treehouse. Plus 1 guest allowed.
$2,500
Acre Mezcal branded mask, tote and copitas. One free night in an Acre Baja treehouse. Plus 1 guest allowed.
$1,000
Acre Mezcal branded mask and tote. One free night in an Acre Baja treehouse. Plus 1 guest allowed.
$500
Acre Mezcal branded mask and 25% off your next stay in an Acre Baja treehouse. Plus 1 guest allowed.
Time-Based
Friends and family 10% bonus shares for the first 3 days
5% bonus shares for all investors who contribute in the next 7 days
For All
All Investors Receive a 15% discount for life and exclusive access to special Acre Mezcal promotions
Will also receive a personal letter from Acre Mezcal founders, Jordan, Stuart and Cameron thanking investors for their participation.
Villa and Treehouse stay subject to availability and blackout dates (Dec 20 - Jan 3), valid through December 20th, 2022.
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Acre Mezcal Holding Corp. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of common stock at $9.94/ share, you will receive and own 110 shares for $994. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Thank you for your investment and for joining us on our journey. Our campaign will be ending early with a new closing date of Jan 14th. We will continue to accept commitments until then and investors who have made commitments will have up to 48 hours before the new deadline to cancel their commitments.
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, La Tierra de Acre Mezcal has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in La Tierra de Acre Mezcal be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, La Tierra de Acre Mezcal has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in La Tierra de Acre Mezcal be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
To Our Shareholders,
Our growth is well underway at La Tierra de Acre Mezcal! The design of our new labels is complete and our cenizo has already landed in Los Angeles with the remainder hitting the warehouse on Thursday. In addition, we’re beefing up our sales & marketing efforts in California and are continuing to work diligently at managing and optimizing our supply chain for the next phase in our development.
For 2021 we believe we will comfortably exceed $250,000 in revenue.
Fundraising
We now have firm commitments of approximately $1,100,000 to StartEngine, and momentum has been strong. Our goal is $1.5MM and our plan is to raise until we hit that point, which should only take a few more months. We’ve made this decision because we would like to have a longer runway to utilize cash and the added funding will allow us to push harder for faster growth in each market. Some have asked so I want to be clear - raising our funding goal does not dilute your stockholdings. It is only the original owners selling more of our stock in the business. You will still own the same % of Acre Mezcal as you did when you invested at a $1MM goal.
California
We are off to a phenomenal start with Springboard Wines. I have been spending significant time with the sales staff of Springboard, training them on the many elements that makes Acre Mezcal special and they are showing their commitment to moving our product onto shelves quickly. We are now in 18 off-premise and 41 on-premise accounts statewide, with more being added every week. Many of these off-premise accounts in particular are of the highest quality and are going a long way for our reputation in the market, including Erewhon Market, Hi-Time Wine Cellar and Hi-Lo liquor market. We’re seeing quick reorders from several of these accounts as well, which is a very strong indication for how the product is being received. In the on-premise we are and rolling out more cocktail and marketing programs. The addition of major cocktail accounts such as The Bungalow in Santa Monica goes a long way towards our visibility in the LA market. We are supporting these accounts with merchandise giveaways and creative programming. In the future expect to see more pop-ups and fun events from us with our major on-premise partners.
We recently participated in the Mexico in a Bottle event in San Diego. This is mainly an industry event for agave spirits enthusiasts with dozens of brands and hundreds of attendees participating. It was great exposure for our place in the mezcal world and developing new relationships within the market. We have had several inbound queries as a result and are working on closing on them soon.
Nevada
Our efforts in Vegas continue to progress nicely. We are now in 26 total accounts including a couple of cocktail menus and in the midst of a trial run at Liquor World, one of the major chains in the area. We recently participated in the sponsorship of a charity golf tournament put on by Lee’s Liquor, who is the largest retail chain in the area. Our focus is to expand our chain business in Nevada and leverage some relationships we have to land some large casino accounts by the end of the year. Supply disruptions have prevented us from expanding more quickly but we feel confident these will be ironed out once and for all within the next couple months.
Cabo
Product continues to fly off the shelves at the Acre Resort. We have the honor of hosting a captive audience of a couple hundred heads a night and showing them an incredibly authentic and beautiful experience. Whether they purchase a bottle or not on-site, these customers then take the experience home with them, tell their friends and build our notoriety.
Outside of Acre, we have engaged our distribution partner more fully and are in active discussions with some of the major hotels in the area. Our goal is to be active with a few of these accounts by the end of the year.
Australia
Our pallet of mezcal has finally landed and has begun selling! No other major news here.
Packaging
By now you should have seen our new product design and the feedback has been incredible! In August we took a trip to Cabo and conducted a photoshoot with the new product and two models. The results are visible on our website and social media, with more images to still be released. I encourage you all to check it out. The simple color differentiation between the bottles we can already tell is going a long way towards helping our customers to differentiate between our four different SKUs.
Supply Chain/Inventory
We are seeing the light at the end of the tunnel with our supply chain difficulties. As we enter our growth stage and have more financial resources at our disposal as well as more demand we are finally able to plan ahead and order product in larger quantities. We did run out of Tobala and Tepeztate as expected, but we have just received 4 pallets of product to California, 3 to Cabo and 1 about to send to Nevada. This will take care of our issues for the time being. These shipments have run down our bottle and cork inventory to virtually zero. However about 1 month ago we placed an order for 25,000 glass bottles from China and 20,000 corks from Portugal. The bottles from China should arrive in ~45 days and the corks will begin arriving before that. Once these items are in place our raw material constraints will be fully alleviated. It’s possible that we hit a brief out of stock depending on how quickly we sell product over the next two months, but we’re confident in the future capabilities of our manufacturing.
Marketing/Press
We have received some great new press over the last quarter both with the product and through our resort partners. Cosmopolitan named Acre Baja the third sexiest hotel in the world. We’ve also been featured in Men’s Journal and La Patiala. Most of our POS materials have been developed, which is helping us on the sales end. We’ve also expanded our giveaway merchandise to shirts, tank tops, tote bags and cocktail clips, which we are using to support our accounts. A newly branded tent also arrived and was put into use in our Vegas event. Expect to start seeing a more robust social media presence, account support and brand partnerships soon.
In Conclusion
Getting to this point was not without its challenges, but growth mode is here! Our sales, marketing and supply are rounding into form and we’re seeing the results in the marketplace. As a member of the Acre family please continue to recommend us to your friends, family and local restaurants/retailers, particularly in California and Nevada. I’ve had incredible conversations with many of you already and your support truly does make a difference.
Warmest Regards,
Jordan Haddad
[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the La Tierra de Acre Mezcal offering. Here's an excerpt describing the specifics of the change:
Issuer is extending campaign
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the La Tierra de Acre Mezcal offering. Here's an excerpt describing the specifics of the change:
Issuer is extending campaign
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
In just the past week La Tierra de Acre Mezcal has found a home in 2 of the most prominent stores in California, Hi-Time Wine Cellar and Erewhon Market! Hi-Time, located in Costa Mesa, CA, contains arguably the country’s most impressive selection of wine and spirits with an incredibly dedicated and knowledgeable staff. After sipping our creation, they were hooked immediately and had to have it into share with their customers.
Erewhon market unparalleled in their exceptional commitment to top-notch products that inspire good decision-making and healthier communities. The staff was thrilled with the many sustainability initiatives we employ and the organic and remarkably clean production methods we use. You can now find our product on their shelves in the Silverlake area of Los Angeles.
Los Angeles customers can also now find La Tierra de Acre at Hi-lo liquor, Lincoln fine wines and the Little Prince on the West Side of Los Angeles!
Saludos!
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, La Tierra de Acre Mezcal has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in La Tierra de Acre Mezcal be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Dr. Evil would be so proud of this latest Tierra de Acre Mezcal milestone…One Meeeeeelllliiionnnnn Dollars!. Thanks to YOU, we have reached the amazing goal of raising $1 million from over 700 individual investors who have the foresight to embark on this journey with us. It is with that belief and support that La Tierra de Acre Mezcal will soar to new heights sharing the culture and ethos of our brand with the rest of the world. In these few short months, the capital raised has allowed us to build out a sales team, expand to new markets and countries, redesign the labels and position the brand for future success both on premise and off. We are excited for all the great success to come and look forward to it even more with all of you on board!
Acre Mezcal is excited to announce our first international expansion beyond Mexico and the Unites States into the land down under of Australia. Such a far off land may seen like a strange next market for Acre Mezcal, however Australians are now the world’s third-biggest consumer of tequila per capita, behind the United States and Mexico. Even the pandemic couldn’t slow down Aussies love of agave spirits. At the height of COVID, Australian Google searches for margaritas tripled. Australia tends to follow closely to trends seen in the US and UK and agave spirits are no different. Agave spirits are currently growing at 4.5 times the rate of other spirits in the UK and the US…we expect Australia to do the same. Although tequila is clearly the leader of “Agave Spirits,” as cocktail culture evolves, Mezcal quickly rises through the ranks for a more sophisticated and flavorful agave drink. As parts of Australia are still shut down, Mezcal cocktails elicit the feelings of a Mexican holiday…the next best thing. Starting in Adelaide, we will move on to Sydney and Melbourne, the two largest bar markets once quarantine restrictions ease. The interest in Mezcal and overall agave spirit growth trends in Australia paint a very nice future picture for Acre Mezcal in the land of Oz!
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