Yerbaé
PLANT-BASED Enhanced Sparkling Water
Scottsdale, AZ
Food & Beverage
Yerbaé is a great-tasting, zero-calorie, PLANT-BASED beverage that is breaking new ground in the energy drink market. Since it launched in 2017, the company has grown from $834K net sales in its first year of business to $3.6M net sales in 2019. The brand is successfully aligning with prominent retailers across the country like Sprouts Farmers Market, Walmart, Target, CVS, Stop N Shop, WaWa, Jewel, Circle K, Canteen, Raley’s, Bristol Farms, Hyvee, Meijer, and many more.
$1,069,280
raised
1,128
Investors
$34M
Valuation
$2.14
Price per Share
$246.10
Min. Investment
Common
Shares Offered
Equity
Offering Type
$1.07M
Offering Max
0
Days Left
This offering ended on March 26, 2021 and is no longer accepting investments.
Reasons to Invest
Since our launch in 2017, we have sold more than 10M+ cans to consumers across the country. Our company has grown 333% in net sales since 2017
Energy Drinks account for almost $14 Billion in sales annually and we are revolutionizing the space with our PLANT-BASED beverages
Our team of beverage industry leaders have experience building some of the leading brands in the industry as formerly a part of their executive management: SoBe (sold to Pepsi Cola); Fuze Beverage (sold to Coca Cola); Nos Energy Drink (sold to Coca Cola); Muscle Milk (sold to Hormel)
The Problem
Consumer behaviors are changing and they are looking for a healthier beverage experience
They say you are what you eat and recent trends indicate that it may be time to amend that to include “… and drink.” Today’s health-conscious consumers are seeking products that will benefit their minds and bodies. Food and Beverage Insider recently cited 65% of consumers want functional benefits from their food and drinks. This shift in consumer preferences has led to a decline in market share for soft drinks.
Consumers are looking for something new, in particular, alternatives to high-sugar containing soda and energy drinks. Flavored sparkling water products have emerged, but the lack of flavor and function doesn’t satisfy a large segment of consumers.
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The Solution
PLANT-BASED Energy Drink with The Simplicity of a Sparkling Water
Yerbaé brings together the best of both worlds by harnessing the benefits of Yerba Mate and White Tea, and blending it with an effervescent blend of sparkling water. By harnessing the power of PLANT-BASED energy, we’ve created a pioneering beverage bursting with flavor and functionality. It delivers digestive support, boosted metabolism and cardiovascular health, and increased physical endurance.
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With more and more consumers looking to lead healthier lifestyles globally, Yerbaé will plug right into almost any healthy diet as our products are non-GMO, vegan, gluten-free, keto friendly, whole 30 Friendly, and Kosher certified.
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Our products are zero calorie, carbs and sugar. Yerbaé is a great alternative for consumers seeking a healthy choice outside of the outdated binary options of bland sparkling water and sugary soda/energy drinks.
Most of our competition uses artificial or synthetic ingredients and generally lack transparency surrounding the actual makeup of their product.
The Market
Energy drink and Sparkling Waters combine for a $17.5B marketplace
Between the sparkling water and energy drink categories, which are worth $3.5B and almost $14B respectively, Yerbaé is tapping into a potential combined market of more than $17B (source).
And as the soda beverage market contracts, Yerbaé will be able to successfully target many of these consumers looking for alternatives. We believe Yerbaé is well positioned to meet the needs of consumers looking to abandon existing brands in favor of a more functional and healthier option.
Our Traction
First 6 months we have sold $2.49M net sales in 2020, we grew through COVID-19 challenges
Since launching in 2017, we have sold more than 10,000,000 cans across the country. Many of our customers have come to rely on our delicious PLANT-BASED beverages.
*Source: Nielsen, 28 weeks ending 7/11/2020. Total US Convenience dollar Revenue % Growth
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Every year, we’ve increased the number of new retail partners and we continue to grow within our current retailers. Examples of our retail partners are Sprouts Farmers Market, WaWa, Circle K, Walmart, Safeway, Albertsons, Winco and Jewel.
Recently we entered into a national rollout program with the Compass Group for one of their largest segments of business — an estimated 10K new locations in the next 2 years.
The future is bright as Yerbaé has started new relationships for distribution with Pepsi of New York and Pepsi Bottling of North Carolina, South Carolina and parts of Maryland, Virginia and Delaware.
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We are also selling direct to consumers, on our website, and through Amazon. Yerbaé has experienced a YoY growth of 237% (as of June ‘20) on Amazon alone. We expect that our D2C business will continue to climb as consumers are shopping more from home.
The Business Model
Omni-channel revenue streams
Our diversified revenue stream has helped us weather the storm through the pandemic and our overall business has grown 31% Net Sales (January to June 2020 vs. January - June 2019). We have four main revenue sources:
50% of our revenue is sourced through DSD channel (Direct Store Delivery):
Local distributors like Budweiser or Miller that deliver our product to local retailers in their home markets
22% of our revenue is sourced through Broadline distributors:
This segment operates as a secondary warehouse and delivery system for retailers
18% of our revenue is D2C (Direct to Consumer):
Amazon, Shopify, or other web-based platforms that will deliver product direct to the consumer
10% of our revenue Direct to Retailer:
Retailers that buy the products directly from us
Gross Margin is very important in the beverage industry and we pride ourself on constantly working to streamline our operations. Currently we are at a 50% gross margin.
What We Do
Simple ingredients for a healthy, functional beverage
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We created Yerbaé with all non-GMO and Kosher ingredients powered by plants to give consumers an uplifted feeling without the crash of most energy drinks.
Yerba Mate has many known benefits:
Greater energy
Mental focus
Reduced fatigue
Weight loss
Antioxidant activity
Enhanced sports performance
Today, Yerbaé offers 2 primary product lines:
12oz OG- Yerbaé’s original unsweetened sparkling water formula served in a fun sleek can. With zero sugar and zero calories, it offers a lighter flavor and 100mg of caffeine. It’s the perfect size to kick your morning off with or for that afternoon “pick me up”. Also makes a great zero calorie mixer for that evening cocktail (for those over 21!).
16oz- This platform was created for those individuals who want fuller bodied flavor and a bigger boost to get through those long days and tough workouts. It offers a much bolder flavor using NonGMO stevia as the sweetener. You’ll also get a boost from 160mg of caffeine.
Before Yerbaé was created, the founders created one of the largest recycling companies in the U.S! You will only ever find Yerbaé in the most recycled beverage container: aluminum cans (source).
OUR LEADERSHIP
An experienced ownership and management team with a long list of successes
Our team has a combined 120+ years of experience in building successful companies. We are quite diverse in our background with experience that includes building companies from the ground up through eventual exits and participating at management levels of some of the most exciting brands in the industry:
Vintage Tech Recyclers (sold to Kuusakoski US) - Karrie Gibson (Founder)
Sprouts Farmers Market- Publicly Traded Company (SFM) - Kevin Easler (Co-Founder)
SoBe (sold to Pepsi Cola) - Todd Gibson & John Blair (Management)
Fuze Beverage (sold to Coca Cola) - Todd Gibson & John Blair (Management)
Nos Energy Drink (sold to Coca Cola) - Todd Gibson & John Blair (Management)
Muscle Milk (sold to Hormel) - John Blair (Management)
Our founders and investors are plugged in and add tremendous value that stimulates our continued growth. This will allow us to reach heights that wouldn’t have been possible without their knowledge and connections.
Why Invest
A drink that is meeting our times
It’s obvious to all of us that people are taking their health more seriously, and we believe that Yerbaé will be one of the leaders in this revolution toward healthier, functional beverages.
Using our extensive relationship and industry connections we will continue to gain new opportunities with the most important players in distribution and retail. We are also very proud of our revenue growth and our continuous business improvements.
We have recently updated our packaging design and launched additional delicious flavors to our portfolio of products. For our complete list of current flavor, visit our website Yerbae.com
Now is the time to jump into our historically fast-growing PLANT-BASED healthy beverage company and join in on this great opportunity.
In the Press
Offering Summary
Company | : | Yerbaé Brands Co. |
Corporate Address | : | 14850 N Scottsdale Rd #295, Scottsdale, AZ 85254 |
Offering Minimum | : | $9,998.08 |
Offering Maximum | : | $1,069,942.22 |
Minimum Investment Amount(per investor) | : | $246.10 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Non-Voting 2020-1 |
Minimum Number of Shares Offered | : | 4,672 |
Maximum Number of Shares Offered | : | 499,973 |
Price per Share | : | $2.14 |
Pre-Money Valuation | : | $33,968,124.60 |
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 COVID-19 regulatory relief set out in Regulation Crowdfunding §227.201(z).
Expedited closing sooner than 21 days.
Further, 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 not direct a 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.
Investment Incentives and Bonuses*
Time-Based Perks:
Friends and Family Early Birds
Invest within the first 72 hours and receive an additional 15% bonus shares.
Super Early Bird Bonus
Invest within the first week and receive an additional 10% bonus shares.
Early Bird Bonus
Invest within the third week and receive an additional 5% bonus shares.
Amount-Based Perks
$500 | Copper
- 10%- One Year Discount code on all online sales
- Discounts on wearable premiums
$1,000 | Silver
- 10%- One Year Discount code on all online sales
- Discounts on wearable premiums
- Hat and T-Shirt
- 5% Bonus Shares
$5,000 | Gold
- *15%- One Year Discount code on all online sales
- *Discounts on wearable premiums
- *Owners Premium Hat and Golf Shirt
- 7% Bonus Shares
$25,000 |Platinum
- *Free (12) monthly subscription of Yerbaé (1 case per month)
- *Discounts on wearable premiums
- *Owners Premium Hat and Golf Shirt
- *20%- One Year Discount code on all online sales
- 10% Bonus Shares
$50,000 | Titanium
- *Free (24) month subscription of Yerbaé (1 case per month)
- *Discounts on wearable premiums
- *Owners Premium Hat and Golf Shirt
- *20%- One Year Discount code on all online sales
- 15% Bonus Shares
*All perks occur when the offering is completed.
The 10% Bonus for StartEngine Shareholders
Yerbaé Brands Co. 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 Non-Voting Common 2020-1 Stock at $2.14 / share, you will receive 110 Non-Voting Common 2020-1 Stock, meaning you'll own 110 shares for $214. 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.
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: Vendor payments. Salary payments made to one’s self, a friend or relative. Any expense labeled “Administrative Expenses” not strictly for administrative purposes. Any expense labeled “Travel and Entertainment”.
Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$1,287,970.00
USD
$727,495.00
USD
Cash And Cash Equivalents
$542,633.00
USD
$219,143.00
USD
Accounts Receivable
$328,193.00
USD
$20,171.00
USD
Short Term Debt
$406,163.00
USD
$2,953,437.00
USD
Long Term Debt
$0.00
USD
$928,876.00
USD
Revenues And Sales
$3,610,897.00
USD
$1,887,808.00
USD
Costs Of Goods Sold
$2,345,233.00
USD
$1,463,647.00
USD
Taxes Paid
$674.00
USD
$3,778.00
USD
Net Income
-$2,694,314.00
USD
-$2,008,195.00
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
WE DID IT! THANK YOU!
about 2 months ago
Don't Drag Your Feet - 5 Days Left
about 2 months agoThere are 5 days left to invest in Yerbaé! Don't miss your chance!
The sun is setting on this campaign - 10 days left!
about 2 months ago10 days left! Don't miss out on the chance to become a Yerbaé investor!
13 Days Left to Invest in Yerbaé!
2 months agoOver $1.03M raised and growing! We have 1,067 investors on board, don't miss your chance to be a part of the baé club! Only 13 days left!
Invest "Kwik" Before 17 Days Are Up!
2 months agoYerbaé has officially hit the $1MM mark on this amazing Regulation Crowd Funding campaign! Over 1,000+ investors have jumped on this opportunity, don't miss your chance to be a part of this amazing brand! There are only 17 days left!
Notice of Funds Disbursement
2 months ago[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Yerbaé 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 Yerbaé 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
Yerbae closing in on one million dollars thanks to over 1000 investors!
2 months agoYerbaé has crossed the 1,000 investor mark this week!
Todd Gibson said, "Thank you to everyone who has invested in Yerbaé thus far. Karrie and I are so excited to share this successful brand with you all."
There are 21 days left to invest, don't miss out on this great opportunity!
Yerbae = Ahhh May Zon (Amazon) Retention
2 months agoYerbaé sales more than doubled with an increase of over +130% in 2020 compared to 2019 through our Amazon Direct to Consumer channel of business. The #1 selling SKU was the 12oz Variety Pack that includes Acai Blueberry, Pomegranate Berry and Orange Cherry Pineapple. Sales for the SKU were up +97% versus 2019 sales. We are also so proud that our customer retention rate in December hit an all time high with +83.7% returning customers.
Yerbaé is on track to significantly grow sales in 2021 with record sales for the months of January and February versus the previous years.
D2C business continues to be a shining star for team Yerbaé!
Iced Triple Berry Reaches New Heights
3 months agoIced Triple Berry has made an entrance into the Yerbaé 16oz lineup and it is proving to be a contender for the top selling SKU since it's launch in February 2020. This bevvy of berries is delightfully sweet, with the hint of tartness that makes berries so irresistible.
You can find this SKU across the country from Stop N Shop on the East Coast to Hy-Vee in the Midwest to Sprouts on the West Coast.
Head to our website to find your nearest Iced Triple Berry! https://yerbae.com/pages/find-us
Plant-Based Diets Grow in Popularity
3 months agoYerbaé harnesses the power of plant-based energy through the use of Yerba Mate.
Recent studies have shown that plant-based diets are growing in popularity with celebrities such as Kim Kardashian, Beyoncé, and Tom Brady making the switch to a plant-based lifestyle. (see graphs showing plant-based trends amongst generations)
There is growing evidence that plant-based diets are associated with benefits such as lower blood pressure, cholesterol, blood sugar and reduced body weight. These benefits often translate to less risk of heart disease, diabetes, cancer and other diseases. Recently, Target stores have added a plant-based section in their grocery department and Jewel Osco in Chicago has added a natural section where you can now find Yerbaé.
The plant-based lifestyle is here to stay and so is Yerbaé!
Yerbaé is proud to announce their distribution partnership with Pepsi of New York City! The brand has expanded into 1,900 retail accounts. You can find Yerbaé PLANT-BASED energy products in fantastic retailers such as: King Cullen, Stop & Shop, Walmart, select Target locations and many other fine retailers. In addition, we are expanding into 432 Canteen locations in New York City, better known as Avenue C retailers. Founder of Yerbae, Karrie Gibson, said, “We are excited for the distribution partnership and we are impressed by the success that Pepsi has had in such a short period of time – delivering over 10,000 cases in the marketplace!” Pepsi is also assisting us with our marketing efforts throughout New York City by displaying Yerbaé on 100 delivery trucks throughout the city to help build brand awareness.
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