SLUG Magazine
THE SPIRITS FRONTIER: CLEAR WATER DISTILLING CO.
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.
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 These outdated regulations limit creations to the original eight crayons in a box.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.
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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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.
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.
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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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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.
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.
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.
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.
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.
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.
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.
THE SPIRITS FRONTIER: CLEAR WATER DISTILLING CO.
FIRST-EVER UTAH COUNTY DISTILLERY CLEAR WATER, OFFERS UTAHNS A SHOT TO CO-OWN
Pleasant Grove to house Utah County's first distillery
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 |
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 | : | $7,499,975.00 |
*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.
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.
As always, it's busy at Clear Water Distilling Co.
Investor Update April 2022
Sales & Projections
Clear Water Distilling Co has been exceeding sales projections for 5 months running. In fact, March 2022 was our highest grossing month to date. We’re working hard to keep that progress moving. Much of the success can be attributed to the fact that we now ship to 47 states for direct-to-consumer sales and our influencer marketing campaigns.
Speaking of influencers, we have added Nic Hamilton to the family. You may recognize him from movies, songwriting, or his mixology TikToks. He recently came to the distillery to make some content and tour the facility, and we are very excited to work with him.
We’re also talking with local UFC fighter/ health guru Bobby Maximus. He, and his wife Lisa, toured the distillery recently, and we’re working out details.
Product Launches, Events, and Other News
For people outside of Utah, you will finally be able to purchase the 2007 version of our Ultra Rare 14 Year Aged Light Whiskey this week. This is the last of this spirit, and it made less than 1,000 bottles. We will be releasing a few hundred bottles for online sales this week to our Valet text-to-buy subscribers. After a week, whatever remains will be available to all consumers on the website.
If you’re not already signed up for Valet, text clearwater to 926-848 to join.
Another influencer partner, Johnny Drinks, is about to hit 1 million subscribers on YouTube, and we have been working hard to put together a commiserate spirit to celebrate the achievement. We will be releasing a special limited edition Johnny Drinks 9 Yr Old Bourbon as soon as that happens. It will be hand numbered, (only ~140 bottles) come in a beautiful custom box with 2 Clear Water Rocks glasses, and be signed by both John and Johnny Rondi. We will also release a special edition ScandaLust for the occasion. Keep an eye out for that.
Bourbon Junkies, a fun spirits duo out of Michigan that visited last fall, is about to release their barrel pick from Clear Water Distilling Co. That is a cask strength 9 Yr aged Light Whiskey that’ll knock your socks off if you are lucky enough to snag one of the less than 200 bottles.
The annual festival, Brewstillery is happening again in June. That is a 1 day event in Salt Lake City that showcases the breweries and distilleries that call Utah home. If you’re local, come see us at ArtSpace City Center SLC on June 18 and try some delicious cocktails made from our spirits.
We have almost finished our retail space at the distillery. We’ve been building some custom shelves made from bourbon barrel pallets. We’ve also refurbished an antique humidor cabinet from the early 1900’s that was originally made in Salt Lake City. Both of these things will allow us to increase our retail items and cigar offerings significantly in the next few months.
We are partnering with a local company, Life Cider, to collaborate on the production of a new non-alcoholic apple cider vinegar drink. Not only is it by far the most delicious ACV drink we’ve ever tasted, but it’s exceptionally healthy. We will be brewing the vinegar and blending the drink in our distillery and of course selling it in our retail space and in regional grocery stores. An added bonus is that Lorenz pairs exceptionally well with the drink, and the plan is to create a Lorenz / Life Cider RTD (ready-to-drink) beverage as soon as possible.
Some good news from the UDABS (Utah Dept. of Alcoholic Beverage Services) is that tasting rooms in Utah will be allowed to operate on Sundays and Holidays beginning in June. The local liquor stores will still be closed, but we can offer tours, tastings, and sales. That should mean an increase in sales, as we will be the only liquor retailer for over 25 miles in any direction on those days.
Speaking of being open on Sundays, we need another retail sales associate. If anyone local is interested in joining the Clear Water Distilling team, email us. We will need someone with weekend availability.
We are also actively looking for an accountant. If you know anyone looking for a part time position, with an opportunity for full-time, please let us know.
We have added New Jersey as a market for distribution. That means retailers and bars can order our products to sell to consumers. If you know any retailers in the following states who may be interested in carrying our products, please email us.
New York, Florida, New Jersey, Illinois, California, Colorado
If you change your address, send StartEngine an email at contact@startengine.com.
You can also email us at support@
Clear Water is Generating Some Buzz
We're Building A Brand Here
As always, thank you for being an investor and believing in Clear Water Distilling Co as much as we do.
Social Media & Brand Recognition
If you have been paying attention, you may have noticed that Clear Water Distilling Co is popping up all over Social Media. Many influencers have been highlighting our spirits, and they have great things to say, along with some awesome recipes.
Millions of people have seen these posts.
Just a few highlights have been:
The Best Ever ScandaLust Eggnog and many others by @johnnydrinks_
A René Passionfruit Whiskey Sour by @courtneyshae__
A Spin on the Joséphine Sangria by @adorationness
Cinnamon Toast Crunch ScandaLust by @bartendrmom
We've also had shout-outs from
@bardaddy_ Katie, a very creative mixologist
@birdies_bourbon Golf and Spirits connoisseurs
@wineweirdos Wine reviewers who appreciate Joséphine's pedigree
@justin.j.cross Founder of EarnYourBooze fitness trend
@xwilliams94 Xavier Williams, recently with the AZ Cardinals
@bourbon_stillz_millz79 Founder of BourbonThieves
and others.
This is just the beginning, as we work to build the brand. What we've been hearing is that the spirits are selling themselves. As an investor, you know we are exceptionally picky about the spirits and the branding. Once people try the spirits, they're sold.
If you know of any influencers who may be interested in trying the spirits let us know.
Another major event in the growth of Clear Water Distilling Co happened this month. We recently traveled to Ft Lauderdale, the home of Alec Bradley Cigars, a huge name and renowned cigar maker. There we spent the day with the founder Alan Rubin and his sons Alec and Bradley. Alan personally paired each our spirits with an Alec Bradley Cigar, highlighting the complementary flavor notes and profiles of each. Collaborations like this highlight both companies and show that Clear Water is an up and coming player in the spirits world. For a highlight reel of the visit, watch this. We'll be sharing more soon.
If you're a cigar smoker, you absolutely must try the AB Gatekeeper with René Ryemagnac.
SMS Text-to-Buy
If you haven't had a chance to try all of the spirits yet, you definitely should. The best way is to sign up for our text to buy SMS service.
*Text clearwater to 926-848*
Once you sign up, you can order home delivery at any time just by texting the number. Need more René, just text us. Want to send a gift, text us. Beyond the obvious convenience, the biggest benefit to this service is that we will be using it as a sort of exclusive club. Many offers will only be available to SMS members. Last month's promotion involved a free set of Tuath glasses. In the future we plan to offer limited edition spirits exclusively via SMS, first dibs on new releases, swag, etc.
Distribution
As you may know we are currently distributed in New York, Florida, Illinois, California, Colorado, and of course Utah. We are always looking for bars and restaurants to carry our products. We are also looking for a distributor in New Jersey. If you have any contacts there, please reach out.
We have also been working to expand the brand into some really exciting properties, including possible international markets. We will be sure to update you as soon as these are inked.
Local Update
Local sales in Utah have been great. We've more than doubled last January's in-person sales, and there's still another week in the month. We recently activated a Groupon and it's been quite successful. If you're local and you haven't been by in a while, stop in to taste all of our products, see the stills, and relax in the Apothecary, our Victorian Tasting Room.
Opportunities to Invest
We are actively looking for accredited equity partners. These are investors who have been approved by the SEC. if you or anyone you know may be interested, please email us.
If you change your address, send StartEngine an email at contact@startengine.com.
You can also email us at support@clearwaterdistilling.com with any specific questions.
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.
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CWD 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
[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
[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
[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
Clear 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!
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