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Washington, DC

The Wine Collective

About Documents
38%
$19,225 Funded
$50,000 Target
Closed Time Left
33 Investors
$50,000 Min. Raise
$107,000 Max. Raise
60 mo. Term Length
10.0% Interest Rate
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Introduction

The Wine Collective is a full urban winery and custom winemaking facility that includes a tasting room and tapas bar. We are the first winery in Baltimore and we produce small lot, premium wines with an uncompromising focus on quality. The Wine Collective was created in March 2019 to bring in the best farmers and producers of the region together under one roof in Baltimore City and make local, world-class wines.

We are seeking investments to increase our production, solidify our brand, and finish our tasting room and bar. We are looking to borrow up to $107,000 at an interest rate of 10.00% over a 60 month term.



About The Wine Collective

We use both traditional techniques and modern technology to make wines of unprecedented quality in the region. We have a vigorous program of Vinification Intégrale (barrel fermentations), which harkens back to the oldest traditions of winemaking, and it also has state-of-the-art winery equipment, including the best wine press in the market and the only of its kind in the country.

This winemaking program and investment in the best equipment require commitment and a very high level of attention to detail. Founders John Levenberg and Enrique Pallares believe that it is also what is required to make wines of extraordinary quality.



The Wine Collective is also the first pintxo bar in Baltimore. Pintxos (pinchos) are the northern Spanish version of tapas, and the quintessential bar food of the streets of San Sebastián and the Basque Country. Served on a skewer on toast, they range from very traditional (Ibérico ham & cheese) to highly creative (Cantabrian anchovies & tomato jam, or squid with cuttlefish ink and Espellette pepper). The food concept of The Wine Collective uses only providers that are fully committed to producing the very best food sustainably. Produce is sourced from local farms, and meats, cheeses and seafood are imported from small boutique producers in Spain who share a commitment to quality and sustainability.


Pintxos are traditional of nothern Spain.


The Wine Collective is a true collective in every sense. Not only do we make wine for our own brand, but we also act as a co-op in which several other wineries and vineyards bring their grapes to vinify them together with The Wine Collective’s team. Currently there are five member wineries and six vineyards that are part of the collective. Through this network of cooperation, The Wine Collective is well on its way to demonstrating that wine and food are not just best enjoyed together but also best made together.



John Levenberg is a Napa winemaker who trained at UC Davis, and worked in Napa and Bordeaux for most of his career before coming to the East Coast. Enrique Pallares is an entrepreneur who spent most of his life living in South America, Europe, and California. John and Enrique met through the wine industry when Enrique opened his Eastern Shore winery, Casa Carmen, in 2016. They bonded over the importance of being obsessively committed to quality in winemaking, as well as the great untapped potential of East Coast terroir. They decided to develop a collaborative project that had this as the center of its mission.


Fast Facts

  • Adding jobs and helping sustain a growing industry in the region
  • First pintxo bar in Baltimore City
  • Led by John Levenberg, award winning Napa winemaker, with 100 point wines from Robert Parker
  • Located within the Union Collective, one of the most exciting commercial redevelopments in Baltimore City, which is already visited by an average of 8,000 to 10,000 people every week
  • First urban winery and full custom winemaking facility in the region
  • Top of the line winemaking equipment, including the only press of its kind in the country
  • Visit their website, their Facebook page, and their Instagram.

The Project

We now have the capacity to produce 7,000 cases of wine per year. We are in the process of finishing our tasting room, and an expansion is planned for year two that will increase the production capacity to 12,000 cases of wine per year. This will allow us to raise our sales and production, and also to increase the number of member wineries and vineyards in the network of winemaking. In the first three years of operation, the main objectives of the business are to execute the plan of producing and selling premium wine and to solidify the brand to become synonymous with quality and integrity.

The production portion of The Wine Collective is fully funded. We have made large investments in all the state-of-the-art equipment that we need to produce excellent wine and food. Now we are raising funds to finish our tasting room and bar so that the place where we enjoy our wine matches the quality of the product. As this will be our main sales avenue and the place where customers come into first contact with our product, it is essential that it reflects the same attention to detail and care that we put into making wine and food. Specifically, the funds of this campaign will allow us to build a bar and purchase bar equipment, and to furnish the tasting room.


We have made large investments in all the state-of-the-art equipment that we need to produce excellent wine and food.


Why We Stand Out

1. The team. The Wine Collective has the right team to be successful. Not only do the managing members and founders have the right experience and credentials but, more importantly, they have the necessary passion and character that is required to make an endeavor like this successful. There are always challenges and this business is no exception. The Wine Collective team has shown time and time again that they can not only overcome obstacles, but that they can turn them into true opportunities and eventually strengths.

2. Right timing. The wine industry in Maryland is at a very special time. Winemakers here are pioneers, but pioneers of what could be called a "second generation." Good wine has already been made in the region. The laws have already been changed, and customer perception is slowly beginning to shift. However, it is still early enough that there is room for capturing big segments of the market without the problem of market saturation.

3. Financials. Unlike wine bars, wineries make their own product. Therefore, they have full control over quality and margins are stronger than the industry standards.

4. Most importantly, the significance of the food and beverage industry for economic development and for the community. The success of "main street" retail, service businesses, and much of economic revitalization depends on the existence of a thriving food and beverage scene, which is why many up-and-coming cities across America become, first and foremost, foodie centers before they develop any other industries. This is because this type of business satisfies a deep human need, which is not just eating and drinking, but being together in community with others around a table.



About the Owners

John Levenberg (Director of Winemaking) studied Viticulture and Enology at UC Davis and spent nine years working at a number of wineries in California, France, and New Zealand. He is responsible for the first L’Absolut de Quinault (Bordeaux, France), rated by Wine Spectator as one of the three best wines in Bordeaux for the 2002 vintage. As Associate Winemaker at Paul Hobbs Winery in California, 23 of the 25 wines John made were rated 90+ points by Robert Parker, including one 100-point wine. John started Nueva Vista Consulting in 2007, where his work with wineries has included the development and design of award winning wineries and wine production programs in Maryland, Virginia, Pennsylvania, New York and New Jersey.

Enrique Pallares (General Director) is an academic, winemaker and entrepreneur. At the age of 17, he moved from Ecuador to Argentina to become a professional polo player. Through his career in polo, he started an equestrian services company in the United States, traveled and lived all over the world, including in Argentina, California and Spain, where he spent his time managing polo clubs and developing his knowledge and love of wine and food. His intellectual interest led him to academia, and he now has a Masters degree and a PhD (ABD) in Political Philosophy. In 2017 he started Casa Carmen, Inc., a winery in Chestertown, MD with his brother Felipe and his wife Laura. As the president of Casa Carmen, Enrique directed the capitalization process, and is responsible for managing the production, business development, compliance, marketing and sales of the company. They are currently producing their third vintage and successfully run a wine and tapas bar in Chestertown, Maryland, the Casa Carmen Wine House. Enrique is also a member of the Board of Directors of the Maryland Wineries Association.


John Levenberg, left, with Enrique Pallares.


Deal Summary

Issuer

  The Wine Collective LLC

Security Type

  Secured Loan

Loan Purpose

 Purchase of equipment and construction costs for wine tasting room

Offering Amount

  $50,000 - $107,000

Interest Rate

  10.00%

Payments

  Monthly, Disbursed to Investors Quarterly

Maturity

  60

Personal Guaranty  

   Enrique Pallares and John Levenberg

Security Interest

   Equipment to be purchased

 


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to The Wine Collective LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee Potential Quarterly Returns* Potential Total Repayment*
$100 $2.85 $6.37 $127.48
$500 $14.25 $31.87 $637.41
$1,000 $28.50 $63.74 $1,274.82
$5,000 $37.25 $318.70 $6,374.11

*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a fully amortizing loan, which means that principal and interest are paid down starting with the first payment. There are no prepayment penalties and The Wine Collective LLC may pay down their loan early, which may impact your earnings potential. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.

The Wine Collective LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.


How Honeycomb is Compensated

Honeycomb charges The Wine Collective LLC a $250 posting fee and a 6.0% loan origination fee on the total amount funded.

 

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

 

Like what you see?  Check out our other campaigns here!

View our
Offering Documents

Comments

Q & A

+ Is it possible to have a site visit?

We can certainly organize a site visit and I can answer all of your questions. When would you like to come by? I am normally around from Monday to Friday. - Enrique, The Wine Collective

+ If you achieve the lower end of range on the capital raise how will you complete the build out?

Thanks for your question. We have set a range with a minimum that would allow us to finish the project and open our doors. The closer we get to our maximum, the closer we get to where we really want to be. - Enrique, The Wine Collective

+ Can you elaborate on any current or pending winery/vineyard relationships? Contracts in place? Volume requirements?

Yes, we have 6 partner vineyards and 4 member wineries. Our whole model is based on long-term, personal relationships. - Enrique, The Wine Collective

+ How much additional capital is being raised via debt/equity? Will this debt subordinate to any other debt?

Thanks for your question. A total of $1.3M has been invested thus far and this debt does not subordinate any other debt. - Enrique, The Wine Collective

+ It sounds like there is some production in place. Is there any financial info that can be shared?

Production is in place. We processed 108 tons of grapes (about 7,000 cases of wine) in the 2019 harvest. - Enrique, The Wine Collective