INVEST IN MONTECITO SPIRITS TODAY!
Award-Winning Spirits produced in the American Riviera
$9,735.28 Raised
REASONS TO INVEST
Montecito Spirits Co. is uniquely positioned in one of the fastest growing spirit categories in the US, the brandy market, which is estimated to be worth $3.5 billion in the US and $23.7 billion globally.
California is one of the best wine grape growing regions in the world, and Santa Barbara was named “Wine Region of the Year” in 2021 by Wine Enthusiast Magazine. Montecito Spirits Co. plans to use these grapes to produce a best-in-class Coastal Brandy.
Kurt Charron, CEO of Montecito Spirits Co., has 18 years of experience in the beverage industry including the creation of spirits brand Chareau. The first-of-its-kind aloe liqueur garnered a score of 96 from Wine Enthusiast Magazine as one of the Top 100 Spirits in the World. Over 250,000 bottles have been sold with an estimated $13 million in retail sales. The company is currently pre-revenue and under development, its distillery is in progress and its products are not yet available on the market.
The PITCH
The Best Grapes, Make the Best Brandy.
*These are images of the company's future product. The product is not currently available on the market and the company has not started any production at its distillery.
Santa Barbara is a world-renowned destination for tourism, food, and wine being named “Wine Region of the Year” in 2021 by Wine Enthusiast Magazine and accommodating over 7.2mm visitors annually. We believe we will have the largest and most prestigious spirits destination in the heart of the city within walking distance from the most popular hotels and restaurants. Our signature product line, Montecito Coastal Brandy, uses the finest California grown grapes to produce a world class brandy in one of the fastest growing spirits categories in the world.
The company is currently pre-revenue and under development, its distillery is in progress and its products are not yet available on the market.
*This testimonial may not be representative of the experience of other customers and is not a guarantee of future performance or success. (source)
The OPPORTUNITY
The Rapid Growth of Craft Spirits & Premium Brandy
(source, source, source, source)
Montecito Spirits Co. is entering into a growing market by producing high-end, cognac-style brandy using California grapes. The US brandy market is currently valued at $3.5 billion, with $2.83 billion of that coming from high-end premium brandy and super-premium brandy, which have seen growth rates of 45.4% and 112.4% respectively from 2016-2021.
One of our competitors, D’Usse, launched in 2015 with sales of 59,000 9L cases in the US and grew to 548,000 9L cases in 2021. The company was valued at over $3 billion in 2023. (Source)
Montecito Spirits Co. will initially target the US market, but plans to expand its market reach globally, where the market is currently valued at $23.7 billion. (Source, Source, Source)
The SOLUTION
Creating Craft Brandy on the California Coast
Although California is one of the top wine-grape growing regions in the world, not many distillers use these premium grapes to produce brandy. (Source) Most of the brandy that has been produced in the US is a lower-end, dessert-style brandy, instead of a higher-end Cognac-style brandy. The challenge with Cognacs is that they are restricted in their production to use specific grape varietals in the Cognac region of France and use dated methodology.
Montecito Spirits Co. is changing the landscape, by using premium California grapes, not authorized in Cognac production, to bring a best-in-class, high-end, Coastal Brandy to the market. The company’s portfolio of brandy will be bottled in varying terra cotta ceramic bottles that will stand out amongst its competitors.
*These are images of the company's future product. The product is not currently available on the market and the company has not started any production at its distillery.
Tourism to Grow Awareness and Market Share
The Company plans to bring in additional revenue and grow brand awareness through the distillery tasting room, visitor experience, and tours located on-site in downtown Santa Barbara. Santa Barbara accommodates over 7.2mm visitors annually, with 15.1% of those visitors participating in a wine tasting while visiting. The world-renowned region is only 90 minutes from Los Angeles by car, along with access via Amtrak train service throughout Southern California and an airport with connecting flights throughout the U.S.
For comparison, Ole Smoky Moonshine Distillery in Tennessee is the world’s most visited distillery with over 2.3 million visitors to the Gatlinburg location alone. This distillery is located outside Great Smoky Mountains National Park, and draws from the 14.1 million visitors visiting the park annually. (Source)
*Future site of the Montecito St. Distillery
Contract Manufacturing
While the Coastal Brandy is aging in barrels, and the tasting room is being built, Montecito Spirits Co. hopes to bring in considerable revenue through its contract manufacturing operations. The Company has an exclusive agreement to produce the widely successful liqueur, Chareau.
The estimated value of this contract is potentially $3mm in future revenue for Montecito Spirits Co., however, as the facility is still in development there is no guarantee of when this contract will begin to take affect. To achieve this revenue, the facility will need to open which will cost an estimated $200,000 to begin contract production operations. Once this amount is raised, MSC can begin production immediately. If the Company does not raise enough funds, the opening date may be delayed. We are targeting July 1, 2023 but this may be subject to change depending on the success of our fundraising. Further, this contract value is dependent on the market interest in Chareau as a product. Please refer to our future projections legend at the end of our page and our risk factors section in our Form C for further information.
To understand the full scope of costs related to the facility, see below:
- Monthly Revenue: $71,750 (Estimated Revenue from Contract Production based on July 2023 projection supplied by Chareau)
- COGS: $20,400 (Estimated COGS to produce the $71,750 in projected monthly Contract Production revenue)
- Monthly Operating Expenses (Overhead + Salaries) = $33,000 (Will begin in the same month as Contract Production)
- Monthly Net Income: $18,350 (July 2023 projection)
Please note that Chareau was founded by Montecito Spirits Co. founder & CEO, Kurt Charron and he is an owner in both businesses. Once in production, Montecito Spirits Co. plans to add additional contract manufacturing partners to operate within the distillery’s capacity.
Why Invest
Invest In The Future Of Brandy
Montecito Spirits Co. plans to open its new distillery in the heart of downtown Santa Barbara with its first brandy product that the company has been developing and aging for over 10 years. The Coastal Brandy is one of the first to market and a world-class brandy that highlights one of the best grape growing regions in the world.
Join an Award-Winning Team
The Founder and Distiller, Kurt Charron, created one of the highest rated liqueur in the world, Chareau, with a score of 96 from Wine Enthusiast Magazine. The brand has sold over 250,000 bottles and $13mm in gross estimated retail sales. Kurt studied the art of brandy distillation and Cognac production techniques in Cognac, France, and his craft has been in development for over 10 years.
Attractive Investment Multiples & Profitability
Alcoholic Beverages command the highest EV/EBITDA multiple across any sector at 25.8x and accounted for 19% of all M&A activity in North America. (Source)
The revenue mix of Coastal Brandy sales, distillery tourism, and contract manufacturing are projected to bring profitability in the first year of operations.
*These are images of the company's future product. The product is not currently available on the market and the company has not started any production at its distillery.
ABOUT
HEADQUARTERS
1624 Garden St. #7
Santa Barbara, CA 93101
WEBSITE
View Site
Montecito Spirits Co. is a California distillery located in the heart of Santa Barbara. The company plans to produce a range of Coastal Brandy, engage in contract production of award-winning spirits, and operate a consumer tasting room within walking distance of the finest beaches and hotels in the country.
TEAM
Kurt Charron
CEO/Founder
Kurt is not only the Founder & CEO of Montecito Spirits Company, but the brainchild and distiller behind Chareau. Chareau was one of the first aloe liqueurs to ever hit the market, garnering a score of 96 from Wine Enthusiast Magazine as one of the Top 100 Spirits in the World. Over 250,000 bottles have been sold to date with an estimated $11mm in retail sales. The pioneering product was started in his home kitchen before growing into the award-winning national brand that it is today.
Kurt currently splits his time as CEO of both Chareau and Montecito Spirits. He plans to continue doing this until the company begins operations at its distillery in which he will have additional day-to-day management help of Montecito Spirits. Please review the Directors & Officers section and Risk Factors section for further information.
TERMS
Montecito Spirits
Overview
PRICE PER SHARE
$1.38
DEADLINE
Aug 22, 2023
VALUATION
$3.5M
FUNDING GOAL
$15k - $1.23M
Breakdown
MIN INVESTMENT
$249.78
MAX INVESTMENT
$299,999.58
MIN NUMBER OF SHARES OFFERED
10,869
MAX NUMBER OF SHARES OFFERED
894,927
OFFERING TYPE
Equity
ASSET TYPE
Common Stock
SHARES OFFERED
Common Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Forward-Looking Information Legend
THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
Voting Rights of Securities Sold in this Offering
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
Investment Incentives and Bonuses*
Loyalty Bonus | 10% Bonus Shares
As you have previously invested in Chareau, you are eligible for additional bonus shares.
Time-Based Perks
Super Early Bird
Invest within the first 72 hours and receive 10% bonus shares.
Early Bird Bonus
Invest within the first week and receive 5% bonus shares.
Combo Perk
Invest $5,000 within the first 72 Hours and receive 20% bonus shares.
Volume-Based Perks
Tier 1 | $500+
Invest $500+ and receive a bottle of Montecito Coastal Brandy.
Tier 2 | $1,000+
Invest $1,000+ and receive the above perks + a Montecito Spirits Co. Hat, and 20% Lifetime Discount at the Distillery Tasting Room Store.
Tier 3 | $5,000+
Invest $5,000+ and receive the above perks + a free tasting and tour for up to 6 people.
Tier 4 | $10,000+
Invest $10,000+ and receive the above perks + two night stay in Santa Barbara at 4+ Star hotel near the distillery.
Tier 5 | $25,000+
Invest $25,000+ and receive the above perks + 10% bonus shares
*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Montecito Spirits 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 $1.38 / share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $138. 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 investor's 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 receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus and Loyalty Bonus in addition to the aforementioned bonus.
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: Salary payments made to one’s self, a friend or relative.
ALL UPDATES
05.23.23
Montecito Spirits Co. is now LIVE on StartEngine!
Hello and Welcome to our Page!
It has always been my dream to bring a distillery into the beautiful city of Santa Barbara, CA. When I found the 100 year old freestanding building with bow and truss ceilings, original windows, and terra cotta tiled roof within blocks of the pacific ocean on Montecito Street, I knew that dream was on its way to becoming a reality. Santa Barbara has some of the best agriculture in the country and I couldn’t be happier to create a distillery in this space and source ingredients from the local farms.
My journey with distilling started over 10 years ago with the creation of Chareau. It has been a privilege to bring Chareau into the world, and I feel so grateful for the opportunity to continue making a spirit that has been embraced by some the best bars and restaurants in the country.
Along this journey, I also fell in love with the spirit of brandy, with its long history and its delicate nuances. It is a truly remarkable spirit. I studied the art of brandy distillation and maturation in Cognac, France and met with some of the greatest producers in the region. While there my appreciation and desire to bring this spirit to life in California only grew. Many people are familiar with brandy through the Cognac or Armagnac styles, but California is home to some of the best grapes in the world, and we can disrupt this growing $23 billion category with our new Coastal Brandy made with the finest California grapes.
You may have come to this page as a former investor in Chareau or you may be new to our story. If you are a former investor and part of our Chareau family, thank you for the continued support. If you are new to this page, thank you for your consideration.
To avoid any miscommunication or confusion here, Montecito Spirits Co. is a new company, and does not have any ownership in the Chareau brand. Montecito Spirits Co. is a distillery that will be contracted to produce Chareau, using the original Chareau production team, along with producing its own line of signature Montecito Coastal Brandy and other future products.
We would love to have you join our family, and invite you to share this page with your own friends, family and co-workers. As you will see, there are investment perks that add onto any new investment, and for the first 72 hours there is an opportunity to receive a 10% Bonus for any new investment or 20% Bonus for investments over $5,000. Help us reach our goal of $1.23mm to bring the Montecito Spirits Co. distillery to Santa Barbara.
Thank you for your investment and support!
Kurt
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
REWARDS
$249
Earn 10% Bonus Shares
Earn 10% bonus shares in this investment and all eligible investments for an entire year. If you are not already an Owners bonus holder, you can join now, for $275, billed annually.
$500
Tier 1
Invest $500+ and receive a bottle of Montecito Coastal Brandy.
$1,000
Tier 2
Invest $1,000+ and receive the above perks + a Montecito Spirits Co. Hat, and 20% Lifetime Discount at the Distillery Tasting Room Store.
$5,000
Tier 3
Invest $5,000+ and receive the above perks + a free tasting and tour for up to 6 people.
$10,000
Tier 4
Invest $10,000+ and receive the above perks + two night stay in Santa Barbara at 4+ Star hotel near the distillery.
$25,000
Tier 5
Invest $25,000+ and receive the above perks + 10% bonus shares,
JOIN THE DISCUSSION
0/2500
ALAN KESLER
8 INVESTMENTS
13 days ago
I am investor in Chareau and I find a few things disturbing:
1. You are selling this part of the company to yourself so
A. one of the primary reason for this transaction was to increase focus on the sales and marketing of Chareau. If you are CEO of both companies how can you possibly increase your focus?
B. You are selling the new company to yourself! That sounds like a conflict of interest. It makes it hard for you to align yourself with the shareholders of each company since you are on both ends of the transaction and lastly what will Chareau receive in exchange for this divesture? Also, why can’t you make 2 separate subsidiaries under the chareau name? I am not say
1
0
Kurt Charron
Montecito Spirits
•
15 days ago
Hi Bryian,
I’m happy to clear up any confusion. Charron Favreau, the company that owns the Chareau brand, is a separate company from Montecito Spirits Company. The $3.5mm valuation is for Montecito Spirits Company only.
0
0
Gregg Carlson
3 INVESTMENTS
15 days ago
Yes, a little concerning about the big drop in valuation. Not much to hang your hat on for those of us who invested back in 2017. Maybe you can help explain the large valuation drop? Personally, I don't see a buyout or IPO anytime soon.
1
0
bryian Tan
15 days ago
So name changed and valuation dropped from 12M to 3.5M???
0
0
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ALAN KESLER
8 INVESTMENTS
13 days ago
1
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