The The Bad Stuff offering is now closed and is no longer accepting investments.

The Bad Stuff

Award-Winning Luxury Tequila Brand

The Bad Stuff

Award-Winning Luxury Tequila Brand

Los Angeles , CA
Food & Beverage
The Bad Stuff is a luxury tequila brand committed to excellence and tradition. The recipe, perfected over generations for 93 years and counting, has won awards across several competitions. In a $5 billion global tequila market and a rapidly expanding premium spirits sector, The Bad Stuff believes it's offering exactly what consumers have been searching for.

$386,281

raised
381
Investors
$9.29M
Valuation
$0.70
Price per Share
$197.33
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left

$386,281

raised
381
Investors
$9.29M
Valuation
$0.70
Price per Share
$197.33
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on May 01, 2021 and is no longer accepting investments.

Reasons to Invest

Critically acclaimed: The Bad Stuff has won numerous awards across many different competitions with many rave reviews from critics
Sales generated: Over the past 12 months (November 2019 through October 2020) our gross sales exceed $140,000.
Massive growing market: is valued at 5053 million USD in 2020 is expected to reach 6669.9 million USD by the end of 2026, growing at a CAGR of 4.0% during 2021-2026.

Overview


A luxury tequila rich in flavor and history

Important critics and aficionados proclaim The Bad Stuff Tastes better. The Judges of major spirits contests have concurred, awarding The Bad Stuff gold time and time again. 

Our luxurious 93-year-old tequila recipe has already generated over $140,000 in 12-month gross sales, and we believe this is just the beginning of our impact on the $5 billion global tequila market.

The Problem


Boring spirits unworthy of the tequila connoisseur 

The tequila market boasts what we think to be a generally bland flavor profile. The market demand for premium tequila has grown steadily over the past decade, gaining traction over other premium spirits, yet we don’t believe the makers of tequila are growing with it. 

There simply doesn’t appear to us to be the commitment to heritage, tradition or environment that modern consumers of premium tequila expect and deserve.

The Solution


A family tequila recipe perfected over generations

Born during the Prohibition and perfected in the years since, The Bad Stuff is a tequila steeped in tradition. Our signature product is an Extra Añejo tequila, aged three years and crafted from the finest estates-grown Tequilana Weber blue agave. 

Our commitment to our craft does not stop at honoring our family heritage. It extended our stewardship of the environment: Our distillery is one of the first to use wood chips for steam generation of power, leaving behind a low carbon footprint. Additionally, we use no pesticides on our locally grown, natural agave.

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The Market


Consumers prefer quality over quantity

Overall, the global tequila market was worth approximately $5 billion in 2020, with the U.S. being the largest consumer of tequila

The trend of the past decade has shown consumers casting aside low- and medium-grade spirits in favor of high-end, premium products. In terms of revenue within this spirits market, tequila is expected to register the fastest CAGR in upcoming years (11.6%).

On-trade means "on premise", as in accounts / locations where alcohol can be consumed on licensed premise (bars, restaurants, etc.). Off-trade means "off premise", where alcohol cannot be consumed on the location, must be purchased and consumed elsewhere (liquor stores, etc.).

Our Traction


A multitude of awards, with critics raving 

Not only is The Bad Stuff good enough to still be served at some of the original Southern California establishments where it found a home during the Prohibition—including the Carlsbad Speakeasy and the Captain Charles Kenneth—but it’s also won numerous present-day awards.

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  • The Robb Report

    • The 9 Best New Tequilas You Should Be Drinking Right Now

  • Made in Mexico & Blind Taste competition

    • Gold Medal

    • Best in Class

    • Best of Show

  • San Diego Spirits and Cocktail

    • Gold Medal (the only extra añejo to receive a medal)

  • Distilled: San Diego Spirit & Cocktail Competition

    • Gold Medal

    • Best of Class

    • Best of Division

  • San Francisco World Spirits Competition

    • Gold Medal

  • San Diego International Spirits Challenge

    • Double Gold Medal

  • SIP Awards

    • Gold

    • Innovation Award

Marketing executive and tequila connoisseur of the Aspen Food & Wine Tasting Festival Jonathan Brawn called it “creme brulee in a glass”, and Robert Plotkin, a renowned critic, judge and mixologist from Bar Media, referred to our product as “museum-grade tequila”.  

These testimonials may not be representative of the experience of other customers and are not a guarantee of future performance or success.

What We Do


Committed to heritage of tradition, family and environmental preservation

In perfecting our 93-year-old tequila recipe, we’ve fostered a deep relationship with the family ownership of our distillery partner, Compañia Tequilara de Arandas, where we hold a long-term contract.

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Our agave is grown in pesticide-free fields and then hand selected by our jimador. Once the perfect leaves are picked, we bake them in traditional steam ovens until they reach a rich caramelization. 


Finally, after aging our tequila in new French oak barrels for three years, our maestro catador completes a complex blending process to perfect our delicious Extra Añejo tequila.

The Business Model


Selling our best-in-show tequila both to distributors and direct-to-consumer 

We currently have distributors in several key areas of the U.S., and we provide direct-to-consumer online sales to almost every state across the country. One bottle of The Bad Stuff Extra Añejo sells for $199 on average. 

Through these sales channels, we have brought in 12-month gross sales in excess of $140,000 with distributors earning at least a 24.1% profit per bottle and retailers earning anywhere from 28% to 42% profit. Extra Añejo tequila typically garners 7.7-10.16x the cost of goods sold, meaning our gross margins are strong.

How We Are Different


Devotion of a different caliber

We believe the generations-old history of our product, paired with our commitment to stewardship of the environment in which we work, is what sets us apart. We have demonstrated our commitment to the craft and gained a loyal grassroots following because of it.

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The Vision


New products to delight old and new customers alike

Our maestro catador Soto Mares is always looking ahead, creating and refining new blends for future distribution. An incredible 12-year tequila, The Bad Stuff Doce, is complete and a production bottle and label design are underway. We have created what we believe to be the best reposado tequila out there. 

We plan to continue growing through word of mouth and via our new digital marketing campaign, with the announcement of our new product lines having already caught the attention of our customers.

OUR LEADERSHIP


Business experience blended with tequila-making mastery

We are a deeply experienced team balancing entrepreneurial backgrounds with mastery in the distillation and blending of tequila. 

Our maker and director, Felipe Soto Mares, has been crafting tequila for more than 25 years and has his Catador status at La Acadamia Mexicana del Tequila.

Our director Darren Enenstein co-founded and managed a successful company prior to The Bad Stuff, which he sold. Our other director, Susy Enenstein, has a Masters in Chemical Engineering and an extensive analytical background, which she uses to help refine our process.

Why Invest


Three generations of experience and passion

We deliver an award-winning, critic-delighting, connoisseur-worthy tequila that we believe is unlike any other on the market. As we venture into fresh territory with our upcoming product lines, now is the time to join our legacy by investing in The Bad Stuff.

In the Press

The Bad Stuff is one of Robb Report's 9 Best Tequilas You Should Be Drinking Right Now

The 3 year buttery smooth & silky extra añejo is inappropriately named, with a sarcastic wink at the vagaries of colloquial slang. It should be reserved for the finest Baccarat snifter. Bad stuff, indeed!

Tequila Aficionado Sipping Off the Cuff: The Bad Stuff Extra Añejo Tequila Review

One of the most unique, exceptional Extra Añejos we have ever tasted, The Bad Stuff receives Tequila Aficionado’s coveted Brands of Promise award.

San Diego Wine and Spirits Challenge: 2020 Directors' Awards

San Diego Wine and Spirits Challenge: 2020 Directors' Awards

Cartel Hour by Cask Cartel

Cartel Hour by Cask Cartel 10: Somebody Feed Phil Tequila - Tequila with Philip Rosenthal

San Diego Union Tribune

Oceanside distiller perfects the fine art of tequila

Sip Awards

2020 MEDALED BRANDS

Offering Summary


Company

:

The Bad Stuff, Inc.

Corporate Address

:

12121 Wilshire Blvd. Suite 600, Los Angeles , CA 90025

Offering Minimum

:

$9,999.50

Offering Maximum

:

$1,069,999.70

Minimum Investment Amount

(per investor)

:

$197.40











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

14,285

Maximum Number of Shares Offered

:

1,528,571

Price per Share

:

$0.70

Pre-Money Valuation

:

$9,293,368.70











COVID Relief

This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief set out in Regulation Crowdfunding §227.201(z).

Expedited closing sooner than 21 days

In reliance on Regulation Crowdfunding §227.303(g)(2) A funding portal that is an intermediary in a transaction involving the offer or sale of securities initiated between May 4, 2020, and February 28, 2021, in reliance on section 4(a)(6) of the Securities Act (15 U.S.C. 77d(a)(6)) by an issuer that is conducting an offering on an expedited basis due to circumstances relating to COVID-19 shall not be required to comply with the requirement in paragraph (e)(3)(i) of this section that a funding portal shall not direct transmission of funds earlier than 21 days after the date on which the intermediary makes publicly available on its platform the information required to be provided by the issuer under §§227.201 and 227.203(a).

*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

THE BAD STUFF BENEFITS

Very early Investors.

Within the first 48 hours investors will receive an additional 10% bonus shares.

Early Investors.

Investors within the first 2 weeks will receive an additional 5% bonus shares.

$200 - <$500

Welcome letter from Maestro Catador, Felipe Soto Mares.

Special product opportunities in qualified states for product purchase for 12 months. Invitations to investor festivals, subject to Covid restrictions.

$500 - <$1,000

The Bad Stuff Tequila t-shirt, hat, and limited flask.

Will also receive an invitation to special limited events subject to Covid restrictions.

$1,000 - <$2,500

Investments of $1,000 to under $2,500 will receive one pre-release certificate for the priority right to purchase up to three Doce Ano (12 year) bottles, limited production of 2,500, and only for qualifying states. * **

$2,500 - <$5,000

Investments of $2,500 to less than $5,000 will receive one pre-release certificate for the priority right to purchase up to three additional Doce Ano (12 year) bottles, limited production of 2,500, and only for qualifying states.* ** Will receive limited production Extra Anejo glass stopper.

$5,000 - <$25,000

Investments of $5,000 to under $25,000 will experience a Zoom tasting (or in-person post-Covid) (exclusive of product) for 10 friends hosted by Master Distiller Felipe Soto along with personal welcome letter. Will also receive 5% bonus shares.

$25,000 - <$90,000 

Investments of $25,000 to under $90,000 will instead of 5% at $5,000 level, will receive 20% bonus shares.

$90,000

Investments of $90,000 to the statutory maximum investment will instead of 20% at $20,000 to under $90,000 level, will receive 25% bonus shares.

Our award winning Extra Anejo, achieving significant gold medals in 2020, is blended by Maestro Catador Felipe Soto Mares. At the pinnacle of his mastery, Felipe has identified very special barrels of 12 year (Doce) tequila to produce an extremely limited batch in a beautifully designed decanter-style bottle with gift box. This batch has been acquired and is waiting in our barrels. Doce bottle prototypes and box molds are being prepared. Doce should be ready Q1 or Q2 2021. 

- The investor will receive a pre-release certificate reserving their respective bottles for purchase. 

- The bottle number and batch number will be hand-written on the label.

*All benefits occur after the offering is completed. Shipping is prepaid for U.S. only. 

** Shipping of liquor is restricted in certain U.S. states. Product may require pick up to be at a determined designated point.

*All perks occur when the offering is completed.

The 10% StartEngine Owners' Bonus

The Bad Stuff 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 at $ 0.70 / share, you will receive 110 shares, meaning you'll own 110 shares for $70. 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, which will be the highest bonus rate they are eligible for.

The Company will not incur any irregular use of proceeds.


Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$5,507,369.00 USD
$5,490,401.00 USD
Cash And Cash Equivalents
$67,785.81 USD
$65,226.47 USD
Accounts Receivable
$38,424.00 USD
$23,949.00 USD
Short Term Debt
$150,200.00 USD
$43,731.00 USD
Long Term Debt
$0.00 USD
$0.00 USD
Revenues And Sales
$98,043.00 USD
$102,423.00 USD
Costs Of Goods Sold
$52,941.00 USD
$53,861.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$109,480.00 USD
-$637,387.00 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

2021 San Francisco World Spirits Competition: The Bad Stuff Wins Double Gold - TWICE

about 1 year ago

The 2021 San Francisco World Spirits Competition (SFWSC) just concluded last week, and the results are in!


We are honored to announce that The Bad Stuff La Mala Reposado AND The Bad Stuff Reserva Especial Extra Añejo BOTH won prestigious DOUBLE GOLD medals. According to SFWSC, "Double Gold is awarded to the entries that receive a Gold medal rating by all members of the judging panel; these are among the finest products in the world".


Cheers!

The Baddest Cocktail Competition - Voting Extended!

about 1 year ago

Great news! Voting is now EXTENDED & will be open until Saturday, April 24th at 5 PM Pacific. Get your votes in before the polls close! Go to: thebadstuff.com/contest


The Bad Stuff Inc. is pleased to announce The Baddest Cocktail Recipe Contest! We extended an invitation to The Lucky Few bartenders and mixologists in San Diego and Orange County. 25 contestants received a complimentary bottle of our award-winning, La Mala Reposado, to create a video and picture of their Baddest Cocktail.

Online voting begins on Monday, April 19th at thebadstuff.com/contest. The top 3 voter-nominated candidates will be in the race to win $1,000 and will create their Baddest Cocktail in front of The Bad Stuff Team, friends, family, and fans at Masters Kitchen and Cocktail on April 27th.

Support the bartending community and make sure to vote for the drink you think is the baddest! Polls are open from 4/19 - 4/24  here: www.thebadstuff.com/contest



The Bad Stuff in Arizona

about 1 year ago

Total Wine orders The Bad Stuff for each of its stores in Arizona.  

The Bad Stuff StartEngine Crowdfunding TV Commercial

about 1 year ago

The Bad Stuff is pleased to announce the launch of its StartEngine Crowdfunding television commercials on CNN, CNBC, and Fox Business. 



UPDATE - The Baddest Cocktail Competition Voting Dates

about 1 year ago

There has been an update to our Cocktail Recipe Contest dates! Voting now opens on MONDAY, APRIL 19, and ends on Friday, April 23. Updated event details are as follows:


The Bad Stuff Inc. is pleased to announce The Baddest Cocktail Recipe Contest! We extended an invitation to The Lucky Few bartenders and mixologists in San Diego and Orange County. 25 contestants received a complimentary bottle of our award-winning, La Mala Reposado, to create a video and picture of their Baddest Cocktail.

Online voting begins on MONDAY, April 19th at thebadstuff.com/contest. The top 3 voter-nominated candidates will be in the race to win $1,000 and will create their Baddest Cocktail in front of The Bad Stuff Team, friends, family, and fans at Masters Kitchen and Cocktail on April 27th.

Support the bartending community and make sure to vote for the drink you think is the baddest! Polls are open from 4/19 - 4/23 here: www.thebadstuff.com/contest


Stay tuned for future Baddest Cocktail contests planned for major cities and areas including Los Angeles, San Francisco, Austin, Dallas, and Manhattan!  

Vote For The Baddest Cocktail!

about 1 year ago

The Bad Stuff Inc. is pleased to announce The Baddest Cocktail Recipe Contest! We extended an invitation to The Lucky Few bartenders and mixologists in San Diego and Orange County. 25 contestants received a complimentary bottle of our award-winning, La Mala Reposado, to create a video and picture of their Baddest Cocktail.

Online voting begins on Thursday, April 15th at thebadstuff.com/contest. The top 3 voter-nominated candidates will be in the race to win $1,000 and will create their Baddest Cocktail in front of The Bad Stuff Team, friends, family, and fans at Masters Kitchen and Cocktail on April 27th.


Support the bartending community and make sure to vote for the drink you think is the baddest! Polls are open from 4/15 - 4/22 here: www.thebadstuff.com/contest


Stay tuned for future Baddest Cocktail contests planned for major cities and areas including Los Angeles, San Francisco, Austin, Dallas, and Manhattan!


The Bad Stuff Hires East Coast Sales Rep and Applies for Pennsylvania Distribution

about 1 year ago

The Bad Stuff has hired a full time sales representative to cover the states of New Jersey, New York and Pennsylvania.  The Bad Stuff has applied for Vendor Of Record in order to distribute into Pennsylvania through American Spirits Exchange.

Get Ready for The Bad Stuff La Mala Plata!

over 1 year ago

The Bad Stuff produces its third product line, a delicious silver Tequila: La Mala Plata!  Anticipated arrival in our warehouse in 45 days. 


Notice of Funds Disbursement

over 1 year ago

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

Hello!

As you might know, The Bad Stuff 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 The Bad Stuff 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 Bad Stuff launches in Spec’s Stores

over 1 year ago

The Bad Stuff is pleased to announce launching its Extra Anejo and Reposado Tequila products in 45 Spec’s Stores in Texas.

The Bad Stuff Featured in Industry Magazine

over 1 year ago

The Bad Stuff achieved front cover in Tequila Aficionado’s February edition.

The Bad Stuff Inc. Expands Sales in Tennessee

over 1 year ago

After securing its Tennessee distributor, The Bad Stuff Inc. is proud to announce pending sales to 29 stores.

The Bad Stuff Inc. adds to its sales team

over 1 year ago

The Bad Stuff Inc. does not entirely rely on distributors and digital marketing for its sales.  The Bad Stuff Inc. has a regional sales person based in California, with a newly added sales person handling Arizona and Colorado.  The Bad Stuff is also working with a sales broker in Texas and plans to seek an East Coast salesperson by summer 2021.

Notice of Funds Disbursement

over 1 year ago

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

Hello!

As you might know, The Bad Stuff 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 The Bad Stuff 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 Bad Stuff Adds Distribution in the state of Tennessee

over 1 year ago

The Bad Stuff is proud to announce it has signed a distribution agreement for the state of Tennessee, continuing its ongoing efforts to expand distribution throughout the United States.

The Bad Stuff La Mala Reposado wins Gold!

over 1 year ago

The Bad Stuff Inc.’s Reposado tequila, La Mala Reposado, has won Gold in the 2021 San Diego International
Wine & Spirits Challenge
.  This prestigious contest is one of the oldest and most revered competitions in the United States. 

The Bad Stuff Inc. is a Lifestyle Brand

over 1 year ago

Where taste matters, some followers of The Bad Stuff choose to savor each day through their lifestyle, their common passion.  Instagram @BadStuffRacing and https://www.thebadstuff.com/badstuffracing share the car and racing lifestyle with aficionados of The Bad Stuff, which has grown to over 1,000 followers.

Notice of Funds Disbursement

over 1 year ago

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

Hello!

As you might know, The Bad Stuff 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 The Bad Stuff 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 Bad Stuff Inc. adds Costco to its list of Vendors

over 1 year ago

The Bad Stuff Inc. adds Costco to its list of vendors, launching product in San Diego County.


Costco

2345 Fenton Parkway

San Diego CA 92108


Costco

4605 Morena Boulevard

San Diego CA 92117

The Bad Stuff Inc. launches its Reposado and receives 2021 Brand of Promise Nominee Award

over 1 year ago

The Bad Stuff Inc. launched La Mala Reposado, our second product and sometimes referred to as the little brother to our award winning Extra Anejo.   Our Reposado received its first award in 2021, winning the 2021 Brand of Promise Nominee by Tequila Aficionado.


La Mala Reposado is aged 8 months, and is beautifully complex, marked by aromas of light spice, floral, and cinnamon blend with a slightly sweet agave taste.

The Bad Stuff Inc. Running 12 Month Gross Sales Increase with a Gross Sales spike in December 2020

over 1 year ago

The Bad Stuff Inc. is proud to share with its crowdfunding community a Gross Sales spike of $50,840 in December 2020, and that Gross Sales grew for the 12 month period of 2020 to $160,084, compared with our previously stated Gross Sales of $141,971.68 for the period of 11/19 to 10/20. 

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