Sugarfina
Candy made for grown-ups
El Segundo, CA
Food & Beverage
Sugarfina is a luxury candy brand that has redefined the confectionary market. With a comprehensive line of luxury sweets, Sugarfina has something for everyone.
$776,874
raised
547
Investors
$125M
Valuation
$10.00
Price per Share
$500.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$25M
Offering Max
Reg A+
Offering
Rewards
Get rewarded for investing more into Sugarfina:
$1,000+
Investment
The Sweet Life
Invest $1,000+ and receive a $100 candy credit for every $1k invested (up to $5k). Also, get early access to new candy releases and investor-exclusive shopping events. Plus, early invites to tastings and events at our retail boutiques.
$10,000+
Investment
Ten for Ten
Invest $10,000+ and receive 10% bonus shares with your investment plus all the perks of The Sweet Life.
Offering Circular | Selected Risks Related to this Offering | Sugarfina Corporation's SEC Edgar Page
For more information on Sugarfina Corporation download and review the Offering Circular. The Offering Circular should be reviewed before making an investment decision. View the 1-K Annual Report for 2020 (filed 4/30/2021) and our Offering Circular supplement (filed 5/6/2021)
Reasons to Invest
💸 Approximately $25 million in revenue in 2020
- 🍬 Extensive intellectual property portfolio
- ✈️ Significant domestic and international distribution expansion opportunity
- 💗 Loyal customers and an amazing product
Life should be sweet
At Sugarfina, we make everyday moments a little sweeter. We've partnered with artisan candy makers around the world to bring sweets that inspire the eyes and excite the palate.
Our core values of luxury, playfulness, and innovation allow us to appeal to our coveted customer demographic of fashionable, influential women.
The Problem
The candy market is too focused on selling to children
Historically the market for candy and confections has been made up of brands like M&Ms and Sour Patch Kids, which focus on targeting children as end-users. However, sophisticated adults love candy too and few confections brands speak directly to them.
The Solution
Sugarfina: Candy store for grown-ups
We offer artisan confections for the fashion-forward female.
Each of our price points delivers on our promise of Attainable Luxury, Playfulness, and Innovation.
Our products are not only a delicious treat, but a sight to behold, thanks to our in-house innovation and creative teams, partnerships with artisanal candy makers and brands from around the world, and commitment to the highest quality.
The Market
The global confectionery market is expected to hit $214B
According to MarketWatch, analysts predict that the global market for confections will reach $214B by 2026, up from $190B.
Our target demographic of fashionable, influential women have been a major part of our brand’s rapid growth via social media. Over 90% of our shoppers are women.
We received the 2020 Wine Award from Cosmopolitan® Magazine for Best Rose Candy and have been featured in Vogue®, People® Magazine, Food & Wine, Forbes, Us Weekly, and The Today Show.
Our Traction
Approximately $25 million in revenue in 2020
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Since we acquired Sugarfina in November 2019, we have leveraged the long-term growth potential of the brand by expanding distribution across our four sales channels as well as launching three new innovation platforms in 2020, and have plans to launch new innovations nearly every month in 2021.
We have implemented a go-to-market strategy that has dramatically optimized our inventory management, shipping, and supply chain processes while improving our gross margins and cash management.
What We Do
We sell luxury confections, with something for everyone
Our line of confections is a comprehensive blend of everything ranging from gummies to cordials, cocktail candies, and chocolate bars.
One of our signature offerings is the Candy Bento Box ®, which boasts a curated assortment of our Candy Cubes ®. This patented packaging system allows for total customization in-store and online thanks to the “Design Your Own Bento Box ®” feature.
We sell both directly to consumers and to wholesale retailers like specialty grocers, online gifting platforms, and specialty gift shops.
The Business Model
A diverse portfolio for a truly omnichannel positioning, approximately 50% of sales from DTC
We have diversified our business model to capture new distribution opportunities while broadening our reach. Our omnichannel approach takes in revenue from five main sources:
Retail boutiques make up approximately 18.8% of our sales coming from 25 retail locations in North America.
Ecommerce represents over 34.1% of our sales and is our highest growth channel.
Wholesale provides 37.9% of our sales through over 2000 prestige wholesalers including accounts like Nordstrom ®, Bloomingdales ®, Paper Source ®, and high-end specialty grocers around the US and Canada.
Custom Corporate Gifting sales make up 6.8%, through over 1300 corporate and event clients.
International sales make up the remaining 2.4%, with a presence in Hong Kong, Australia, South Korea, Spain, and Japan.
*Omnichannel %sales as of December 2020
How We Are Different
Broad intellectual property portfolio-making for a strong competitive advantage
We are a leader in the luxury candy and premium gummy space.
Thanks to our IP portfolio, this position is largely defensible, and as we continue to build our brand through increased marketing and branding campaigns — including our iconic packaging — we believe our market share is likely to increase.
The Vision
Never stop innovating — both in product and in distribution
In addition to expanding our ever-growing list of products— we just launched new collections, including Spa by Sugarfina, our all-vegan Tropical Collection made with real fruit purée, and our new Hampton Water® Rosé Candy Bento Box®— we are continuously expanding distribution.
Our plans include expanding onto Amazon® USA and Rakuten® Japan, growing our specialty grocery store accounts, including internationally, opening retail stores selectively in strategic locations throughout the U.S., and ramping up distribution at our new centralized Las Vegas facility to meet increasing product demand. We are also exploring further wholesale expansion into Europe and Southeast Asia, as well as into the UK and the Middle East.
We are investing in digital marketing as well, to continue scaling our higher margin and higher growth eCommerce business.
Our buzz-worthy co-branded collaborations continue to surprise and delight our customers with new ways to think about candy with exciting new partners coming in 2021.
OUR LEADERSHIP
Innovative & passionate about our product
We are a dedicated and forward-thinking team focused on building the future of the candy market.
After acquiring Sugarfina we have focused on placing experienced executives and leaders in charge of their given specialties and have empowered them to thrive in their roles, which has resulted in a unique culture of innovation and collaboration. The Sugarfina leadership team has a combined 100+ years of experience in consumer businesses and building aspirational consumer brands.
Why Invest
Loyal customers and an amazing product
We have already proven through our efforts to appeal to our target audience of sophisticated, influential, and fashion-forward women, that we have an ideal product-market fit.
We believe our stellar reputation among these key audiences positions our brand to grow sustainably and rapidly in the next few years.
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AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT CAN BE FOUND HERE.
YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
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. 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.
In the Press
Cosmopolitan
We Drank 90 Bottles of Wine to Find the Best Wines of All the Wines and It Was So, So Hard
Updates
Introducing The Simpsons x Sugarfina
3 days agoWe’re thrilled to continue celebrating this summer with a new brand collaboration, in partnership with The Simpsons. With inspiration from this beloved TV family and the longest-running primetime scripted show in television history, we’re premiering five new candies – “Homer” Donuts Cereal, “Marge” Chocolate Pearls, “Bart” Apple Skateboards, “Lisa” Pineapple Saxophones, and “Maggie” Strawberry Pacifiers, along with a limited-edition TV Tasting Box and an indulgent chocolate bar inspired by Homer’s love of donuts.
We’re excited to partner with this iconic show and these beloved characters that have a long-standing history with American families. Whether you’re on the couch watching The Simpsons, or out for a night at your local version of Moe’s, The Simpsons x Sugarfina® Collection is the perfect snack and the most delicious collector’s item yet!
Be sure to check out the collection here!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Father’s Day Gifts available NOW!
6 days agoAs we continue to provide luxury gifts for every occasion, I’m excited to share that our Father’s Day Collection is live on www.sugarfina.com and available in our boutiques as well. This year’s campaign celebrates all dads, from the Dapper Dads, Top-Shelf Dads, and Chocoholic Dads we all know and love, and features our Vice Collections as well as our best-selling Cookie Collection. While we think all Sugarfina candies work for this occasion, we’re thrilled to highlight our curated selection of Father’s Day gifts!
Be sure to check out the collection here and order in time for June 20th!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Watch our latest Town Hall with Angels & Entrepreneurs
17 days agoAs an additional opportunity to share our future business plans, we recently connected with Angels & Entrepreneurs’ founder, Neil Patel, in a real-time conversation to directly answer his questions about our Reg A+ offering. We outlined strategic choices such as our new, central distribution center, exciting upcoming collections, and our shift in focus to e-commerce platforms.
If you’re a subscriber to Angels & Entrepreneurs, tune in to watch the full conversation here and hear Neil’s thoughts.
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
NEW Gourmet Grocery Account!
20 days agoSugarfina’s expansion into the “gourmet grocery” world has exploded over the past 12 months, and show no signs of slowing down! I am excited to share our latest account, McCaffrey’s Food Markets, located in Pennsylvania and New Jersey. This high-end grocery store will offer a variety of our candies, including Dark Chocolate Sea Salt Caramels, Champagne Bears®, and our Gelato Collection.
Come find us at their Yardley, Newtown, Princeton, and New Hope locations!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Expansion in Canada!
22 days agoWe are excited to announce our continued e-commerce expansion as we partner with Well.ca in Canada! Well.ca is an online platform that features Canada’s most popular health, beauty, and skincare products. They ship Canada-wide and offer amazing assortments including home, lifestyle, bath, and skincare, as well as luxury snacks and beverages.
Our top 15 core Candy Cubes® will be featured as part of their assortment, along with a selection of chocolate bars, Candy Bento Boxes®, and other seasonal items as our collections continue to launch throughout the year.
We are thrilled to expand into this account as we continue to set our business up for success and navigate the boom of e-commerce shopping. Well.ca has exponentially grown in their own sales with their food category this past year, and we are hopeful that with Sugarfina’s addition, we will contribute to that growth curve.
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Sugarfina is Setting Sail!
24 days agoAs summer kicks into full gear, I am excited to announce that we have launched our first-ever cruise ship partnership! We’ve partnered with Royal Caribbean and Heinemann Americas for in-store branded fixturing and various additional activities on their “Odyssey of the Seas” ship, which departs from Israel in June.
We will have two full wall bays and tables in their main store, with products such as our Gelato Collection, Sugar Lips®, and celebratory Candy Bento Boxes® such as Happy Birthday, Thank You, Cheers, and Rosé All Day. We will also participate in tasting events and sampling activations for guests to enjoy. Lastly, we have created an exciting commercial introducing Sugarfina that will play in all of the estate rooms on board!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Luxury Hospitality Expansion Continues!
27 days agoAs consumers continue to embrace travel, we are working to ensure Sugarfina is present in our consumers’ destinations this summer and beyond! I am excited to announce we have expanded into seven luxury SBE properties – Mondrian LA, SLS South Beach, SLS Brickell, HYDE Midtown, SLS LUX Brickell, SLS Baha Mar, and SLS Cancun.
We will be present in the minibar inside all guest rooms and look forward to continuing our partnership with these luxury hospitality accounts as we delight more guests from all around the country and world!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
NEW Las Vegas Hospitality Account
29 days agoWith several new strategic wholesale accounts launching these next few months, I am excited to share the latest Las Vegas hospitality venue featuring Sugarfina @ Red Rock Casino Resort & Spa.
We are now available in the mini bar in 796 hotel rooms with best-sellers such as Dark Chocolate Sea Salt Caramels, Sugar Lips®, and our deliciously indulgent Choco Chip Cookie Chocolate Bar. We are excited to continue to drive brand awareness and product trial throughout the city!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
Highlights from our 2020 Annual Report!
about 1 month agoI am happy to share with you all the filing of our 2020 Annual Report on Form 1-K, which you can access by clicking on the “Sugarfina Corporation’s SEC Edgar Page” link here on our StartEngine page. This report contains company results and financials for the fiscal year 2020, and while 2020 was one of the most challenging years in recent memory, we are proud to share with you our results and a little more of what is to come in 2021.
Some significant 2020 achievements we want to highlight:
- $25 million in sales during 2020 despite the COVID-19 shutdowns
- Improved our net earnings by $40 million
- Increased our e-commerce channel revenues to 34% of our total business, versus 16% in 2019 and was up 37% YOY
- Increased gross margin as a percentage of net revenue by 14% versus 2019
- 2020 holiday sales of our famous Advent Calendar exceeded sales in 2019
- Reduced selling, general and administrative expenses by $28 million, or 63%, versus 2019
- Opened three new retail stores in key Southern California locations on favorable terms
- Expanded international distribution into Australia and Japan
- Grew our e-commerce customer list from 424,000 subscribers at the beginning of 2020 to 480,000 potential customers
- Launched brand new innovations, like our Tea, Gelato, and Cookie Collections, Cold Brew Cordials, and vegan Cranberry Cocktail Bears
Despite the unforeseen COVID-19 related challenges in the year 2020, I must say that I am very proud of our results as a company, and I am extremely proud of the team of talented and hard-working professionals at Sugarfina who worked tirelessly to see the company through the depths of the pandemic, positioning us for a successful 2020 holiday season.
Retail sales in our boutiques were down $13 million primarily due to the COVID-19 closures and our exiting unprofitable retail locations opened by our predecessor company. Starting in mid-March we closed our retail stores and began re-opening them starting mid-June 2020 at restricted occupancy levels that lasted through year-end. We worked quickly to pivot to our e-commerce channel and grow our own list of social media followers and email subscribers, as well as to launch our own Amazon storefront. Similarly, when many of our wholesale accounts were forced to close their stores, we quickly moved to make Sugarfina products available online with a wide variety of internet retailers and expanded our distribution into the retail accounts that were universally open in North America such as gourmet grocery stores. We also took the opportunity to identify and eliminate waste by cutting our unprofitable products, reducing inventory investment, and rebuilding our new product innovation processes.
Now, as retail sales are increasing with the distribution of the COVID-19 vaccine and as our custom sales pick back up with the increase in weddings, baby showers, and similar events, we are poised to benefit from the strong foundation we built during the pandemic, including increased e-commerce sales, a variety of new online and grocery wholesale accounts, new retail boutiques, more favorable gross margins, and drastically lowered expenses.
We encourage our investors and prospective investors alike to peruse our 1-K filing and to leave us their questions and comments here on our StartEngine landing page. We look forward to another year of growth and expansion as we spread sweetness to even more fans around the world.
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
NEW GoPuff Digital Distribution!
about 1 month agoI’m thrilled to share our rapid distribution expansion on a national scale and announce that we recently launched on goPuff! GoPuff is a digital delivery service operating in over 650 cities, including major markets such as Philadelphia, Seattle, Boston, Phoenix, and Atlanta. We are available in 240 markets with expansion plans in progress for all goPuff markets.
Customers can purchase our best-selling Champagne Bears®, Sugar Lips®, and Peach Bellini® Small Candy Cubes®, alongside our Cheers 3 Piece Candy Bento Box® and Rosé All Day 2 Piece Candy Bento Box®, and have their sweet treats delivered in as quick as 20 minutes in some areas. GoPuff is also available 24/7 in select markets and we think Sugarfina is the perfect treat to satisfy those late-night cravings!
This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.
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