Local Roots Kombucha

A Brew for a Better Tomorrow

Local Roots Kombucha

A Brew for a Better Tomorrow

VISTA, CA
Food & Beverage
Local Roots began with the simple goal of creating an organic, better-for-you alcohol that gives back to the local community as much as it does your gut. Our bold hard kombucha is authentically brewed and pushes the boundaries for the next generation of better-for-you alcohol.

$358,054

raised
207
Investors
$42.4M
Valuation
$2.63
Price per Share
$247.22
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
3
Days Left

$358,054

raised
207
Investors
$42.4M
Valuation
$2.63
Price per Share
$247.22
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
3
Days Left

Rewards

Get rewarded for investing more into Local Roots Kombucha:

$248+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$248+
Investment
Tier 1: $250
1 Local Roots Hat or Beanie or T-Shirt + 1 Local Roots Sticker + 1 Ownership Certificate
$500+
Investment
Tier 2: $500
1 Local Roots Hat or Beanie + 1 Local Roots Sticker + 1 Local Roots T-Shirt + 1 Exclusive Local Roots Pint Glass + Founding Roots Club lifetime membership status & Ownership Certificate
$1,000+
Investment
Tier 3: $1,000
2 Local Roots Hats or Beanies + 2 Local Roots Sticker + 2 Local Roots T-Shirts + 2 Exclusive Local Roots Pint Glasses + 15% off Online Orders for 1 year + Founding Roots Club lifetime membership status & Ownership Certificate
$5,000+
Investment
Tier 4: $5,000
2 Local Roots Hats/Beanies, Local Roots Stickers, Local Roots T-Shirts, Exclusive Local Roots Pint Glasses, Exclusive Local Roots Locals Mugs,15% off Online Orders for 1 year, Founding Roots Club lifetime membership status & Ownership Certificate
$10,000+
Investment
Tier 5: $10,000
2 Local Roots Hats/Beanies, Local Roots Stickers, Local Roots T-Shirts, Exclusive Local Roots Pint Glasses and Mugs,Exclusive Local Roots Custom Jacket + 5% Bonus Shares, 20% off Online Orders for 1 year,Founding Roots Club lifetime membership
$25,000+
Investment
Tier 6: $25,000
2 Local Roots Hats/Beanies, Local Roots Stickers, Local Roots T-Shirts, Exclusive Local Roots Pint Glasses and Mugs, 2 Exclusive Custom Jackets + 10% Bonus Shares+ 20% off Online Orders for LIFE+ Founding Roots Club lifetime membership, Help Create O
$50,000+
Investment
Tier 7: $50,000
2 Local Roots Hats/Beanies, Local Roots Stickers, Local Roots T-Shirts, Exclusive Local Roots Pint Glasses and Mugs, 2 Exclusive Custom Jackets+15% Bonus Shares, 20% off Online Orders for LIFE,Founding Roots Club lifetime membership, Resort Getaway

Reasons to Invest

Better-for-you alcohol is exploding over 150% to $4B in 2020.
Local Roots is up 284% in the Southwest, from #5 to #2 in category growth, since COVID.
We believe traction, capacity runway, and brand position enable Local Roots to deepen distribution footprint, expand nationwide, and compete on a scale akin to large craft beer and RTD cocktail brands.

OVERVIEW


The Future of Alcohol - Without So Much Sacrifice 

Local Roots began with the simple goal of creating a clean, organic alcohol that gives back to the local community as much as it does your gut. As co-founders and cousins, we both experienced health scares that drove us to reinvent our diets. Through our journey for a cleaner and more organic lifestyle, we found it difficult to find anything that aligned when it came to the weekend drinks.



Living in San Diego over the past decade, we’ve grown to love and embrace the Craft Beer movement that has become a part of the culture here and throughout the country. We were encouraged to open our own tasting room in 2019 after years  of cold-pressing juices, brewing our own kombucha, and sharing flavors with friends. Within 3 months of opening, the demand outpaced our production capability and we immediately looked into expansion. Through an SBA loan and donations from family and friends, we were able to purchase our current production facility, giving us room to grow for years to come. 


The Problem


Seltzers were so 2020 - Most consumers have no idea what's really in their "better-for-you" alcohol

Whether looking for light, gluten-free alcohol or just trying to find out what ingredients were in alcohol, we discovered nobody seemed to be proud of what they’re putting inside their cans. Since beer and wine have no requirement to tell you what’s in them, they often avoid it. Even emerging segments like Hard Seltzer, Ready-to-Drink Cocktails, or Canned Wine often avoid putting everything on the labels. And we found, for good reason. While often perceived as better-for-you, we found them chock full of mystery “natural ingredients”, lacking much flavor, and essentially all tasting the same.

The Solution


Better Than Seltzer: All-Organic, Made From Plants, Functional, and Actually Great Tasting Alcohol

Our traditional and authentic kombucha recipe is brewed with a base of black tea, green tea, and cane sugar using traditional kombucha techniques. We’ve fine-tuned our recipe to result in a kombucha ANYONE can love. Once our non-alcoholic kombucha brew is complete, we take it one step further with a second fermentation to kick it up to either 4.5% or 6% ABV. We then flavor with organic fruits, veggies, and herbs to re-create your favorite cocktail flavors - all starting with a Mule, A Mojito, and a Mimosa.

It’s easy-to-love, kombucha, with a kick. In addition to low calories and carbs, you’ll see our labels outfitted with the simple list of organic ingredients found in every can of local roots - transparency is in our veins.

*All perks occur after the offering is completed.

The Market


Better-For-You Movement Transforming Alcohol 

The total US Alcohol market was over $250Bn in 2019. With beer making up $116B and wine $67B, consumers are migrating in droves to the world of ‘better-for-you’ options. Whether it’s lower calories, organic, or gluten free options, Hard Seltzer is the well-known golden child who is making up 21% of millennial’s total alcohol consumption, and growing. Up over 150% in 2020, hard seltzer has surpassed $4B - and we believe this is just the tip of the iceberg.

Our Traction


287% Growth Since COVID-19 Shutdowns, Becoming the #2 Fastest Growing Hard Kombucha Brand in the Southwest

 After outgrowing our first microbrewery in 3 months after launch, we were fortunate to find and purchase a much larger brewery at the end of 2019 - giving us a bit more room to grow. At over 40x the capacity, the new brewery is capable of producing over $25M annually, and space for over $50M. 

What We Do


Disrupting The Disruptors: In A World Of Innumerable And Indifferentiable Seltzers, We’re Making Better Booze Better-Er

Local Roots is working to elevate the future of alcohol with an option that has less mystery ingredients yet more flavor, and flavors inspired by your favorite cocktail. It’s like nostalgia-meets-modern. 

THE BUSINESS MODEL


A Planet-First Lifestyle Brand Using Seltzer, Energy, and Craft Beer Go-To-Market Strategies

We started with a two-pronged sales approach to lay the foundation, layering that with a budding team of influencers to carry the love for the brand. 

 

Sales launched both “on-premise” restaurants/bars and “off-premise” grocery. Pre-COVID, this was nearly a 50/50 split in business. With a brand new category, we sought to follow a hybrid of the craft beer and energy drink learnings with a focus on getting as much liquid-to-lips as possible through on-premise launches, events, and demos. Pair that with saturating grocery and convenience, we convert love-by-trial on-premise, to volume through re-purchase off-premise.

Now we’re building out our team of like-minded athletes, artists, and weekend warriors who truly believe in our movement. After many months of building out our program, we’ve finally launched and are bringing together those who emulate, support, and amplify the impact and reach of Local Roots Values and mission for a healthier planet. With a reach of over 5M - we’re just getting started.

Last but not least - we are announcing our upcoming collaboration with the legendary Del Mar Fairgrounds as the exclusive Hard Kombucha brand available on the fairgrounds. As the world re-opens, this will include the annual San Diego Fair as well as all concerts, races, and festivals hosted on the legendary fairgrounds. We’re excited to provide the next generation of alcohol with such a historic Southern California venue.

HOW WE ARE DIFFERENT


Converting Seltzer, Wine, and Even “Non-Kombucha” Drinkers, with Premium, Organic Alcohol That Actually Tastes Delicious

At Local Roots - we’re changing the way people think about booze, and even kombucha. With premium and clean ingredients, we’re also converting those bored with seltzers with something that’s actually real, and great-tasting. We love nothing more than converting ANYONE to a kombucha lover - No matter what experience you’ve had, our cocktail-inspired flavors are clean, bold, and approachable, even for those who haven’t fallen in love with kombucha yet.

Born from a symbiotic culture that’s been around for centuries, kombucha is full of antioxidants, enzymes, and living probiotics. No fillers, no mystery “natural sweeteners”, no preservatives, and fully non-GMO. Just clean, plant-based, and organic ingredients. Think seltzer 2.0 - just functional, made from plants, and ready for when your seltzer-fatigue sets in.

innovation


Innovation & Quality Are The Backbone Of Everything We Do

Initially with 3 flavors, the success of our first two ‘specialty’ flavors resulted in them becoming permanent. Now with 5 Core flavors, we’re building on that momentum with our first Lower-Calorie flavors, and first mix-pack. The LoCal Roots 95 Mix-pack includes three new flavors. These flavors bring a direct alternative to the seltzer market with just 95 calories, and less than 1g of sugar, plus probiotics and way more flavor. It’s like craft beer is to boring domestics, done better.

OUR INNOVATION TEST BED

Coming in May 2021, we’re opening our brand new tasting room - The Boochyard. Building on the avid success we had for 8 months before COVID shutdowns, we’ve moved into a much bigger brewery, increased capacity 40x, and are putting the final touches on a brand new 7,000+ sq-ft of indoor-outdoor Tasting Room space. We’ve had so much fun with R&D - this is the first place on earth you can experience all the fun our brew team is dreaming up. We use this feedback as the test bed to develop the next flavors headed to the market.

GIVING BACK → CANS-FOR-A-CAUSE

From day one, we’ve been on our mission to give back to our planet - making a difference both locally and for the greater good of the planet. We started in 2019 by giving back to causes such as Father Joe’s in San Diego, Sacramento Food Bank, Thrive Animal Rescue, and Surfrider to name a few. 

 

In 2021, we’re taking it even further and dedicating each quarter to support a larger cause via our Cans-For-A-Cause Program. We intend for our first full launch to be for Q3, with two yet-to-be-named and well-known partners, who will collaborate in the creation of the specialty flavor, giving back with community service hours, and donating a portion of sales for the quarter. The can itself is all  wrapped up in a unique artwork that has been developed with a local artist.

OUR LEADERSHIP


Family Roots Uniting Industry Veterans Toward a Shared Vision

What started as an idea between two cousins has grown into a budding team aligned on a mission of disrupting the way people think about alcohol. With over 100+ years of combined experience in beverage and alcohol, we’ve built a team of industry and startup veterans already making waves. 

 

Co-Founder and Cousin Ryan White is a connector and serial entrepreneur who began his career in healthcare. He shares a passion for healthy living, sports, exploring, and making a positive impact on the planet.

 

Co-Founder and Cousin Joe Carmichael is an innovator who started his career in Aerospace doing lean manufacturing and product development. He brings a passion for culture and collaboration, bringing people together to make a difference.

Why Invest


A Disruptive Lifestyle Brand On A Mission To Change The Future Of Alcohol

Local Roots Kombucha has staked its claim in the market and we believe is poised to capitalize on a post-COVID world looking for a reason to celebrate. The brand has developed cocktail-inspired, clean, organic alcohol in a new and growing better-for-you alcohol category. With expanded capacity, new markets, new retailers, and new innovation pipeline set, we’re looking forward to a year with a focus on marketing, innovation, and liquid-to-lips, on a mission to change the way the world thinks about alcohol.

Quick Insert

In the Press

Local Roots brings Hard Kombucha to North County

The Vista-based kombucha brewery is booming. According to Nielsen, hard kombucha’s market share of the alcohol industry increased nearly 250% last year and 70% of all kombucha consumed in the United States is on the West Coast.

Fill Your Heart By Filling Your Liquor Cabinet

This Southern California hard kombucha company is donating $5 from every Giving Tuesday order to Father Joe's Villages to support its mission to end homelessness.

Holiday Drinks for Outdoor Fun

Local Roots is a small batch hard kombucha brand featuring a niche blend of teas, probiotics, polyphenols and antioxidants, and of course, a nice buzz you’d expect from a quality cocktail.

Local Roots Kombucha Announces 3 Low-Calorie Flavors

The trio of flavors also contains just one gram of sugar and are now available in select retailers, as well as online.

Offering Summary


Company

:

Organic Craft Brewing

Corporate Address

:

1430 Vantage Court Suite 101, VISTA, CA 92081

Offering Minimum

:

$9,999.26

Offering Maximum

:

$1,069,999.72

Minimum Investment Amount

(per investor)

:

$247.22











Terms


Offering Type

:

Equity

Security Name

:

Class B Common Stock

Minimum Number of Shares Offered

:

3,802

Maximum Number of Shares Offered

:

406,844

Price per Share

:

$2.63

Pre-Money Valuation

:

$42,385,853.22











 Tier 1: $250

  • 1 Local Roots Hat or Beanie or T-Shirt
  •  1 Local Roots Sticker
  •  1 Ownership Certificate

Tier 2: $500

  •  1 Local Roots Hat or Beanie
  •  1 Local Roots Sticker 
  •  1 Local Roots T-Shirt
  •  1 Exclusive Local Roots Pint Glass 
  •  Founding Roots Club lifetime membership status & Ownership Certificate

Tier 3: $1000

  •  2 Local Roots Hats or Beanies
  •  2 Local Roots Sticker
  •  2 Local Roots T-Shirts
  •  2 Exclusive Local Roots Pint Glasses
  •  15% off Online Orders for 1 year
  •  Founding Roots Club lifetime membership status & Ownership Certificate

Tier 4: $5000

  •  2 Local Roots Hats or Beanies
  •  2 Local Roots Stickers
  •  2 Local Roots T-Shirts
  •  2 Exclusive Local Roots Pint Glasses
  •  2 Exclusive Local Roots Locals Mugs
  •  15% off Online Orders for 1 year
  •  Founding Roots Club lifetime membership status & Ownership Certificate

Tier 5: $10,000

  •  2 Local Roots Hats or Beanies
  •  2 Local Roots Stickers
  •  2 Local Roots T-Shirts
  •  2 Exclusive Local Roots Pint Glasses
  •  2 Exclusive Local Roots Locals Mugs
  •  1 Exclusive Local Roots Custom Jacket
  •  5% Bonus Shares
  •  20% off Online Orders for 1 year
  •  Founding Roots Club lifetime membership status & Ownership Certificate:

Tier 6: $25,000

  •  2 Local Roots Hats or Beanies
  •  2 Local Roots Stickers
  •  2 Local Roots T-Shirts
  •  2 Exclusive Local Roots Pint Glasses
  •  2 Exclusive Local Roots Mugs
  •  2 Exclusive Local Roots Custom Jackets
  •  10% Bonus Shares
  •  20% off Online Orders for LIFE
  •  Help Create Our Next Flavor! Come for a behind the scenes tour of our production facility while working with our R&D team to create a new and exclusive flavor. Work with the team to fine-tune the flavors, create a tasting panel, and help finalize a new flavor in the market.
  •  Founding Roots Club lifetime membership status & Ownership Certificate

Tier 7: $50,000

  •  2 Local Roots Hats or Beanies
  •  2 Local Roots Stickers
  •  2 Local Roots T-Shirts
  •  2 Exclusive Local Roots Pint Glasses
  •  2 Exclusive Local Roots Locals Mugs
  •  2 Exclusive Local Roots Custom Jackets
  •  20% off Online Orders for LIFE
  •  15% Bonus Shares
  •  The Local Founder Experience: Enjoy a 2 night, 3 day stay for 4 at our favorite Resort here in Carlsbad, CA, each with your choice of a round of golf or a day at the spa. Trip will also include an all-access tour of our production facility and tasting room, with a full R&D sampling panel and access to some exclusive special releases.  
  •  Founding Roots Club lifetime membership status & Ownership Certificate


The 10% StartEngine Owners’ Bonus

Local Roots Kombucha 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 stock at $2.63 per share, you will receive and own 110 shares for $263. 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 Shares bonus, which will be the highest bonus rate they are eligible for. 


*All perks occur when the offering is completed.

Irregular Use of Proceeds

Example - The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; Any expense labeled "Administration Expenses" that is not strictly for administrative purposes; Any expense labeled "Travel and Entertainment"; Any expense that is for the purposes of inter-company debt or back payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$2,151,855.00 USD
$673,732.00 USD
Cash And Cash Equivalents
$325,115.00 USD
$83,026.00 USD
Accounts Receivable
$54,073.00 USD
$42,312.00 USD
Short Term Debt
$558,563.00 USD
$292,295.00 USD
Long Term Debt
$2,900,836.00 USD
$409,829.00 USD
Revenues And Sales
$1,793,488.00 USD
$565,376.00 USD
Costs Of Goods Sold
$1,239,530.00 USD
$176,978.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$1,751,520.00 USD
-$368,712.00 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

6 Days Left!

3 days ago

We're excited to announce the closing of this round as we look to focus on next level of expansion and growth. Thank you for everyone's support in our crowdfunding campaign as we pursue our journey of elevating the future of alcohol.

Together we're Brewing a Better Tomorrow!

Flagship Tasting Room | Now Open!

15 days ago

We're excited to announce the opening of our full indoor-outdoor Tasting Room located at our World Headquarters in Vista, CA. We're already filling the calendar with events, bands, and more - keep an eye out on our instagram @localrootskombucha for details! Thanks again for everyone's support on our mission toward Brewing a Better Tomorrow!

Notice of Funds Disbursement

22 days ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Local Roots Kombucha 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 Local Roots Kombucha 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

We're Excited to Launch the First in our Limited-Release Cause-Can Series!

2 months ago

In our pursuit of Elevating Alcohol for a Better Tomorrow, we’ve partnered with 5 Gyres to bring this collaboration with 5 Gyres and Second Chance Beer Co to life.

Over 10% of proceeds will be donated to support 5 Gyres, a leader in the global movement against plastic pollution with more than 10 years of expertise in scientific research, education, and advocacy on plastic pollution issues.

We're more than excited to share this AMAZING flavor with the world, all while giving back - Thank you for your support in our pursuit of elevating the future of alcohol!


Notice of Funds Disbursement

2 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Local Roots Kombucha 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 Local Roots Kombucha 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

Thank you! $250k Milestone Hit

4 months ago

Thank you for the continued investment and spreading the word to support our pursuit of elevating the future of alcohol! We’ve raised over $250k and are just getting started - Thanks for helping us Brew a Better Tomorrow!


Going Greener Every Day | Part 2

4 months ago

We're excited to announce we've gone live with FULL Solar on our roof! We're continually searching ways to reduce our carbon footprint, with a goal of obtaining Climate Neutral certification in early 2022. Keep an eye out shortly for many more ways we're brewing a better tomorrow!

Going Greener Every Day

4 months ago

In our ever-improving mission for going green, we're redesigning our cans! While the look is a small refresh from our current gradient, we're updating our designs to accommodate direct-printing. While this is a much longer process and requires much larger quantities - it ultimately removes the single-use plastic sleeve from the cans themselves. Keep an eye out on shelves for the new designs and direct-print versions coming soon!

Please Welcome WATERMELON SPLASH!

4 months ago

Beat the heat with one of our juiciest and most refreshing flavors yet. Super limited release so jump in while it's here! 


Notice of Funds Disbursement

5 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Local Roots Kombucha 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 Local Roots Kombucha 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

$150,000 in the first 9 days!

5 months ago

We can’t thank all of you enough for your love and support and we’re excited to continue this momentum. We’re just getting started! Please feel free to share this link with your friends and family to help us reach our goal! To stay up to speed on everything we’ve got in the works, be sure to follow us on Instagram!

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