SLUG Magazine
THE SPIRITS FRONTIER: CLEAR WATER DISTILLING CO.
Clear Water Distilling
Award Winning Distillery
Pleasant Grove, UT
Food & Beverage
Clear Water Distilling Co. produces handcrafted premium spirits inspired by the inner rebel in each of us. Built with a passion for great taste, we incorporate different distilling methods, high quality yeast and unique ingredients to craft category shattering spirits. Because flavor matters more than labels.
$1,067,501
raised
2,033
Investors
$7.5M
Valuation
$2.42
Price per Share
$249.26
Min. Investment
Units
Security Type
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on May 01, 2021 and is no longer accepting investments.
Reasons to Invest
Clear Water Distilling, Utah’s 2020 Distillery of the Year, produces innovative award-winning spirits that are revolutionizing the spirits industry.
Led with grit and determination, the team is committed to continuing to grow Clear Water into an industry disrupting distillery focused on creating flavorful spirits with beautiful branding and marketing.
The US craft spirits market is expected to reach revenues of more than $20 billion by 2023, growing at an impressive CAGR of over 32% during 2018-2023.
A craft distiller that doesn't fear and even embraces the specialty liquor shelf
Unique Spirits
Clear Water Distilling Co. creates unique, great-tasting spirits without regard to what category they fit into.
Josephine Eau de Vie is a hybrid eau de vie of various fruits, molasses, and then rested in toasted oak for a spirit that tastes like a scotch and a brandy had a baby. It’s like nothing else on the market. Lorenz improves on a traditional rum via its vapor infusion with vanilla beans and cinnamon sticks, resulting in an amazingly versatile mixer and stand alone spirit. More exciting and delicious spirits are currently in development.
Beautiful Branding
Clear Water knows that spirits not only have to taste good, they have to look good and appeal to consumers. With the icon series, highlighting interesting personalities from history, Clear Water is creating a product that consumers want to drink and to buy. Also, Clear Water is committed to giving back to a cause that each icon would have supported and has vowed to donate to a like minded charity for each spirit.
Leadership with Grit Unleashed in a Market Full of Potential
Clear Water is led by a team with tons of grit and years of distillery, business intelligence, data analysis, and organizational experience. Not afraid of hard work, the team knows that nothing good comes easy. Keeping up with projections and trends, Clear Water’s products are exploding onto the scene in a market that is ready to embrace them. High-end spirit sales, including eau-de-vie and brandy, are slated to be the next boom in the US Market, and Clear Water’s Josephine and a projected 2021 release are positioned to sell well. Already, keeping up with consumer demand is the biggest issue, a great problem to have.
When categories inhibit taste, there's a problem.
Today’s rules and regulations leave little room for creativity and innovation, which in our opinion is what creates the great taste and unique experiences today’s consumer wants. When distilling liquor, any deviation from the standard rules means your spirit is sitting on the “specialty liquor” shelf, and for the majority of distilleries, that’s seen as a risk that’s too big to take.
Think of it like a box of crayons. These outdated regulations limit creations to the original eight crayons in a box. We're dumping out the crayons, melting them down, and creating a whole new set of colors.
Throw out the rules to enhance taste and experience.
Craft beer has it figured out. Bold brew masters set out against the masses and started experimenting with different yeast, fruits, flavors, and methods to produce unconventional tastes we now can’t live without. We’re here to do the same with craft liquor. We strategically blend techniques used in different distilling methods and add unique ingredients that improve the flavors and proudly put us in the “specialty” category.
Like all of the best innovations throughout history, our liquor stands apart from the crowd. We don’t fit inside the lines and that’s what makes our premium quality taste even better. And we believe it’s only a matter of time before the big dogs follow our lead.
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Craft distilling is outpacing craft brewing.
We’re in this because it’s our passion. But beyond that, the numbers just make sense.
High-end spirit consumers are seeking the same experience they've found through the innovation and creativity of the craft brew boom, but it's a market that's currently underserved. The mass spirit brands are playing it safe and sticking to the category standards, but we're here to color outside the lines and be among the first to deliver what the high-end consumer wants.
Distilleries [suppliers] have been seeing steady increases in revenue, nearly doubling in the past 13 years, according to the Distilled Spirits Council.
Craft spirits are gaining market share at a faster rate than craft brewing did in the early 2000's.
We've made it through the hard part.
Having been open only since March 2020, keeping up with consumer demand for our products has already become an issue. Due to our success thus far, We are actively seeking larger production equipment to increase our production capacity by 10x. Equity crowdfunding capital will directly impact this effort.
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Pivoting quickly, due to Covid-19, to online sales instead of previously planned on-premises sales channels has been a good move. Clear Water’s products are selling online at shop.clearwaterdistilling.com, shipping to around 30 states.
Partnering with a distributor that services the southern California market has been, and will be a great outlet for our products. We are also looking at moving our products into European and Asian markets.
GIF
Another sales channel is Spirit Hub, online same-day shipping to Chicago retailer who is actively expanding into multiple states. Illinois is also an active distribution market, having our license to sell directly in the state.
Finally, our in-person sales at the distillery have increased significantly each month since the March opening.
Never ones to rest, active projects include releasing 2 new spirits by Spring 2021, and designing more. We are also working toward distribution into Colorado by 4th quarter 2020.
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We put a new twist on an old classic.
Like craft brewing, our distillery makes spirits/products based on a target flavor idea instead of a category. We feel that makes for the best products because they are not constrained by the need to fit a particular category. It also gives us total freedom for creativity and results in a wonderful new pallet for bartenders and mixologists. This also results in spirits that may have never existed before and offers the consumer the chance to try something absolutely new. Imagine being Bob Ross with the restriction of only 8 colors of paint, and then your world opens up into an infinite spectrum of colorful expression.
Current Products
Making money through traditional retail and direct sales.
We are primarily focused on several avenues to generate revenue: Already selling online to over 30 states, our eCommerce sales are up and running at shop.clearwaterdistilling.com. We have already begun forming strategic partnerships with distributors in key markets, such as southern California, Illinois, and Colorado. On-Site sales at the distillery are also strong.
We believe high-end spirit consumers are seeking the same experience they've found through the innovation and creativity of craft brew, but it's a market that's currently underserved. The mass spirit brands are playing it safe and sticking to the category standards, but we're here to color outside the lines and be among the first to deliver what the high-end consumer wants.
We're not afraid to defy tradition.
Just like our icons, we’re not afraid to do things differently. We push boundaries and experiment with fresh and unique ingredients combined with non-traditional techniques to create flavors that stand above the norm.
While there’s always a little risk when you don’t follow tradition, we’ve found that it’s our “secret sauce” to enhance and improve upon the classic tastes that already exist. The feedback we’ve received on our first two products has given us the added confidence to move forward. We’re creating a taste and experience today’s consumers are craving.
There are three main things in distilling craft liquor that make the biggest difference: the yeast that’s used, ingredients for flavor, and the distillation process itself.
Like we mentioned before, we’re not afraid to experiment with flavorful ingredients not typically used in spirits. But whatever it is, we start with the freshest quality to ensure the best flavor. An Eau-De-Vie typically uses only fruit but we’ve improved upon a classic flavor by adding molasses.
Giving back in honor of those who inspire us.
Part of our vision includes giving back to nonprofit organizations that support a cause honoring the lives of historical figures who've inspired our liquors. We plan to donate based on our annual sales, profit margins, and per revenue on each product.
Josephine was a progressive woman who "did it all." After WWII, during which she played an active role with the Resistance, she helped refugees and adopted 11 displaced and impoverished children from different nations. Through the 60s, she spent her time and fortune on numerous humanitarian efforts and the Civil Rights movement.
Lorenz, a Danish explorer, author and anthropologist, was a lover of nature with a great respect for the Inuit culture as he explored the Arctic. He defied death on several occasions throughout his life: being trapped in an avalanche during a dogsled exploration across Greenland and being imprisoned as a Jew and sentenced to death during WWII.
Create a community that's engaged in the experience.
Apart from handcrafting great tasting liquor, we want to create a community where our customers participate in the experience with us. We’ll tap into bloggers, influencers, and mixologists--such as the US Bartenders Guild--that will help tell our story and build a unique experience. We plan to create online engagement for customers where they can customize a blend or submit their recipe idea.
Down the road, we plan to get into contract distilling for local businesses and events where they can select their flavors and get a set number of cases. Exclusive custom spirit development can be done for any establishment or organization interested in partnering with us. As far as product development goes, we’re in constant experiment mode finding new ways to distill and innovate with taste and flavor.
Notable Acquisitions
As we look at the spirits industry above, there have been a few key spirits acquisitions in recent years. These figures represent significant acquisition valuations in the distillery industry for each respective year of their sales. Our goal as a company is to work towards this level of success. There is no guarantee that Clear Water Distilling will reach a similar stage of development. Even if the company does, there is no guarantee it will get acquired.
Led with grit, and a track record to prove it.
We're up and running and want you in on the growth.
Imagine showing up to your neighborhood party with a bottle of handcrafted liquor from a company you own. Not a bad feeling, right?
Our first two products, Lorenz and Josephine, are flying off the shelves. New releases are anticipated in the 4th quarter of 2020, and 2nd Quarter 2021.
Profit margins of 50% or better on each product and 30+ years of business development and manufacturing experience.
A company that cares about the community, we plan to give back to organizations that support the causes important to the historical figures who represent our products.
In the Press
Utah Business
FIRST-EVER UTAH COUNTY DISTILLERY CLEAR WATER, OFFERS UTAHNS A SHOT TO CO-OWN
Daily Herald
Pleasant Grove to house Utah County's first distillery
Offering Summary
Company | : | CLEARWATER DISTILLING COMPANY LLC dba "Clear Water" |
Corporate Address | : | 564 W 700 S, Suite 401, Pleasant Grove, UT 84062 |
Offering Minimum | : | $9,999.44 |
Offering Maximum | : | $1,069,998.16 |
Minimum Investment Amount(per investor) | : | $249.26 |
Terms
Offering Type | : | Equity |
Security Name | : | Crowdfunding Units |
Minimum Number of Shares Offered | : | 4,132 |
Maximum Number of Shares Offered | : | 442,148 |
Price per Share | : | $2.42 |
Pre-Money Valuation | : | $7,504,410.32 |
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below
Perks*
$250+ :: Clear Water Distilling Sticker (Unique to Investors)
$500+ :: 2 Clear Water Distilling Glasses (Unique to Investors)
$5,000+ :: Private Tour Invitation, Choice of Embroidered New Era Cap or Embroidered Ogio Polo
$10,000+ :: Opening Gala Invitation for 2 (Invitation-Only Party, Press will Attend) ~Q1 2020
$25,000+ :: Opportunity to buy one of the first 100 signed and numbered bottles.
$50,000+ :: A personal and customized experience of our mutual choosing. (custom run, personalized tasting experience, etc)
All levels also get swag from lower levels.
*All perks occur after the offering is completed.
The 10% Bonus for StartEngine Shareholders
Clear Water Distilling Co. will offer 10% additional bonus units for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.
This means eligible StartEngine shareholders will receive a 10% bonus for any units they purchase in this offering. For example, if you buy 100 Crowdfunding Units at $2.42 / unit, you will receive 10 Crowdfunding Units, meaning you'll own 110 units for $242. Fractional units will not be distributed and unit bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments. Salary payments made to one’s self, a friend or relative. Any expense labeled “Administrative Expenses” not strictly for administrative purposes. Any expense labeled “Travel and Entertainment”. Inter company debt or back payments.
Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$118,496.00
USD
$45,516.00
USD
Cash And Cash Equivalents
$20,752.00
USD
$45,516.00
USD
Accounts Receivable
$0.00
USD
$0.00
USD
Short Term Debt
$79,357.00
USD
$13,339.00
USD
Long Term Debt
$71,394.00
USD
$0.00
USD
Revenues And Sales
$0.00
USD
$0.00
USD
Costs Of Goods Sold
$0.00
USD
$0.00
USD
Taxes Paid
$0.00
USD
$0.00
USD
Net Income
-$147,067.00
USD
-$21,322.00
USD
Risks
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.
Updates
Latest Investor Update
about 2 months agoThank you for being an investor.
As always, it's busy at Clear Water Distilling Co.
Some highlights of our recent activity:
New Product launch- You may have already seen teasers online. We're about to release a Cinnamon Whiskey. Though it's unlike any of the sugary sweet flavored whiskeys on the market. This one uses only natural ingredients and it's unsweetened. This is a grown up cinnamon whiskey. We think you'll agree when you taste it. Expect this by November 1.
If you haven't already, sign up on our SMS list to be the first to hear about the launch by texting clearwater to 926848.
New Team Member- We recently hired John Eau Claire to manage Operations and Utah local sales. He brings many years of experience in hospitality and management, and we are very fortunate to have him on the team.
Local Bars & Restaurants- John has been busy getting Clear Water spirits into some local restaurants. He is in talks with many others. You can find our spirits in Salt Lake City at White Horse and The Melting Pot. We are also at the luxury resort The Lodge at Blue Sky, an Auberge property in Wanship, UT.
If you know a bar or restaurant owner in Utah, New York, Illinois, California, Florida, or Colorado who may be interested in carry our products, please have them contact us. Those are our current states of distribution for wholesale.
E-Commerce progress- We have been continually upgrading and tweaking our website. You may have noticed a few changes to the layout and feel of it. We are looking at adding some more features soon, and we'll share those as they go live.
Local Retail Sales & Tours- We have seen a good increase in local tours and sales. Our tasting room was recently renovated, and we are just about finished upgrading the retail space. We have expanded our product offerings locally to include T-Shirts, Stickers, Glasses, Hats, and Premium Cigars.
Utah County's Only Premium Cigar Retailer- We are now selling premium cigars out of our retail space. We are only the 2nd premium cigar retailer in Utah, with the other being Beehive Cigars in Salt Lake City, about 45 minutes north of us. For now we carry Alec Bradley, but we are in the process of ordering more brands. Already, cigar sales have been healthy and we haven't even started advertising them.
Special Guests & Shout-Outs- We were recently visited by a couple of You-Tubers, the Bourbon Junkies and ADHD Whiskey. We have since been featured Bourbon Junkies show a couple times. They only had awesome things to say about our sprits, especially René RyeMagnac. We have also received positive reviews from many other influencers including Birdies & Bourbon, CoffeeBlack WhiskeyNeat, the Happy Hour with King Hap, and others.
If you know an influencer who would like to review a Clear Water product, please let us know.
Investor Swag- We've heard from a few $500+ investors that they have not received their investor glasses. We had a few returned to us with bad addresses, and at least one lost by the postal service.
Please reach out to us if you are a $500+ investor and you have not received your glasses. Stickers are also on the way.
Future Investments- We are currently seeking accredited investors who are interested in potential investment opportunities in Clear Water Distilling Co. If you are interested, or you know someone who may be, contact us.
We've Been Busy
4 months ago
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Investor Swag Update
6 months agoCWD Updates/News Flash
Investors,
As we wait the latest update from StartEngine on last group of CWD investors, we wanted to let you know that those that invested the required amount will be receiving their CWD swag as soon as it is available.
Although several of you have invested over the last several months, we still have not received the final list nor the addresses of those investors. Once we receive those, we will be processing the swag.
Those that met and/or exceeded to $5,000 investment threshold will also be contacted for short and hat sizes.
We have taken great care in procuring quality swag to represent our Defiantly Different beverages.
Please continue to be patient with us as we also must be patient as our vendors continue to rehire and increase production to meet orders.
Thank you
Notice of Funds Disbursement
8 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Clear Water Distilling 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 Clear Water Distilling 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
Notice of Funds Disbursement
8 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Clear Water Distilling 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 Clear Water Distilling 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
Notice of Funds Disbursement
9 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Clear Water Distilling 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 Clear Water Distilling 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
Even More Great Press
9 months agoClear Water Ups its' Game!
9 months agoClear Water is pleased to present “Norma”. She is our new 500 gallon stripping still. She comes to us from a Kentucky whiskey distillery. She will decrease our stripping time from 6 days to 5 hours!
Notice of Funds Disbursement
9 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Clear Water Distilling 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 Clear Water Distilling 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
Notice of Funds Disbursement
10 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Clear Water Distilling 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 Clear Water Distilling 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
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