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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Opening and running a distillery involves a significant amount of capital.
The cost of starting a distillery today is not the same as back in the days when popular brands like Tanqueray Gin by Diageo plc DEO and Jack Daniel’s made by Brown-Forman Corporation (NYSE: BF-A), (NYSE: BF-B) were starting up.
A smaller distillery can cost on average around $200,000 to start, while for a large-scale distillery, the cost may be several millions. Apart from cost, another major drawback for many distillers is marketing and distribution; a company could be producing the finest gin, but people need to know about it to drink it.
AKA Spirits Inc (TUCK) believes that its unique business plan and strong partnerships can set it up as a standout manufacturer of gin and gin-related products in the market.
A Dive into TUCK’S Business Model
Unlike owning distillery equipment like most of its competitors in the industry, TUCK delegates all its distillation process to a contract distilling partner, Matchbook Distilling. By doing so, TUCK hopes to reach the market faster while at the same time minimizing production costs.
From an investor’s standpoint, the company can be described as a low-capital brand without many moving parts. This could make TUCK more agile and provide higher margin with less liabilities on its financial statements.
After being in the Northeastern market for a couple of years, TUCK wants to expand its reach to other regions as well. The company says it will soon be entering a partnership agreement with TAG USA, a sales agency in the Southeast US, subject to entering relevant distribution agreements. The agency has helped boost the fame of brands like Patron and Tito’s.
TUCK expects that this will create momentum for the company to gain credibility, and could be a stepping stone to a bright future.
“Working with TAG USA for Florida and Georgia would provide exciting opportunities with access to two large markets, potentially driving significant sales growth, with limited capital outlay”, says Jonathan Davies, the President and Chief Testing Officer of AKA Spirits.
The company has also partnered with CDI and Rhode Island Distribution to assist in distributing its products in Connecticut and Rhode Island.
TUCK is a beverage company that expects to disrupt the gin and gin-based ready-to-drink (RTD) canned cocktails starting from the US and beyond. The company is currently seeking capital to support their sales and marketing efforts. You can learn more about and invest in the company at: https://www.startengine.com/tuck-gin
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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