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New York

Slate Point Meadery

About Documents
102%
$15,300 Funded
$15,000 Target
Closed Time Left
22 Investors
$15,000 Min. Raise
$40,000 Max. Raise
36 mo. Term Length
7.5% Interest Rate
Closed

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Overview

In a mead industry that has been on a significant rise over the past five years, Slate Point Meadery was established in 2017 as the first commercial mead producer in the Mid Hudson Valley of NY. The goal of our Meadery has and will continue to be to produce and offer to the public this unique beverage crafted primarily from honey. Although mead is considered the oldest alcoholic beverage in the world, over centuries it has drifted into the shadows behind wine and beer, particularly in the United States. Not until recently has it been re-introduced to the mainstream alcoholic beverage market in this country, and our Meadery intends to showcase its mead not as a novelty/historical item, but instead as an everyday drink that consumers can enjoy, similar to hard cider, hard seltzer, wine and beer.

Over the past three years, as we have been focused on marketing and selling its products at events, festivals and farmers markets, customers have shown great enthusiasm for the variety of mead offered. We've been able to integrate ourselves into the local economy and community with a different product to offer, while supporting local businesses. A lot of the ingredients we use to craft mead come from local or at least state farms. The business has been very successful in generating great interest.

Now we're ready to enter the next chapter in opening the doors to a new tasting room on Main Street in Poughkeepsie NY, only a two-hour drive north from NYC. Thanks to our current invested partners, the build-out of the new space began in February 2020 and is close to finishing this summer. The basics have been set up, so we can open to the public soon, but with the challenges and delays presented this year, we need some more help in finishing this build-out to stand out and offer a high-quality product and experience to our customers.
 

We are raising $40,000, paid at a 7.50% interest rate over a 36 month term.

 

One of our mead rosés.

 

The Project

  1. Re-financing our short-term working capital loans that were taken on to maintain positive cash flow and get us through these difficult times: $15,000
  2. A large store-front sign for Main Street foot traffic: $3,000
  3. Additional production equipment to improve efficiency and quality of mead, such as an industrial wine filter, mixing tank and small 1-2 bbl brite tanks for the tap system: $6,500
  4. Hire at least 1-2 staff employees to help manage the tasting room and assist with production. The use of the funds would go towards initial payroll: $7,000
  5. Tasting Room supplies and fixtures to improve customers' experiences, such as a large beverage cooler, wall art that educates and entertains customers on mead, slushy machine (mead slushies are a huge hit at other meaderies in the country) and other miscellaneous bar items that can quickly increase the budget: $4,000

If we raise these funds, we will be able to:

Remove the short-term WC loans that were necessary to take on earlier in the year when Covid-19 regulations were put in place, and if we at least cover this with the funding campaign, that will help us focus on generating revenue and more important things to invest in, instead of worrying about paying these WC loans with such high interest rates.

Fully open our indoor tasting room with a high quality experience for customers that allows them to taste and learn about mead, leading to a much higher yield in daily sales.

More effectively promote our business to the local area and immerse ourselves into the community.

 

A behind-the-scenes look at mead production.
 

Business

History

I (Eric) was introduced to the awesome beverage known as mead in 2005 by a friend who is now an investing partner (Brian). I was always enamored by its unique quality compared to beer and wine. When 2011 came around, a couple friends wanted to make some with me and develop plans to create a business. After many years of home-brewing mead, research and development, the business idea faded... until 2016 when I noticed many meaderies starting to pop up around the country, I decided that it was time to get serious about establishing Salt Point Meadery LLC. Salt Point is the town where I grew up located in rural Hudson Valley. After a slight trademark discrepancy, the brand name was officially changed to Slate Point Meadery, with the idea that we need to "clean the slate" on the perception of mead – that it can only be sugary, sweet and heavy only meant for vikings and court jesters – and will be considered a main-stream beverage, similar to what hard cider has experienced and what hard seltzer has recently experienced.

After three years of promoting the business, its products, and educating consumers on what mead has to offer, SPM has reached the point where its business model needed to change from off-premises sales at events to a tasting room location that allows customers to come to us and enjoy our products on site. In fact, the #1 question customers would always ask over the years is, "where is your tasting room?" Now that we have one, we're excited to have guests visit for the full mead experience.

 

Since mead is so versatile, a tasting room gives customers a wide variety to try.
 

The Future

Over the next 3 years we intend to grow the business primarily focused on the tasting room for direct-to-consumer sales, building a "home base" location for both new and loyal customers. Over the course of these initial years, we will develop limited mead bottle releases to generate further interest and exclusive offers to the most loyal customers. We intend to hire a full staff to both manage and operate the tasting room, while I (Eric) can focus on production with the help of 1-2 assistants. After these initial years, we will start to re-visit plans that were looked at before the tasting room to sign on with distributors and eventually open an off-site warehouse for full production and distribution of our mead, while still keeping the Poughkeepsie tasting room as the home base for customer experience. We will also look to open up to 4 more satellite tasting rooms across the state, at least one in NYC, as the new farm meadery license we have allows for just that. If all goes according to plan and mead has truly become part of the main-stream beverage industry, we would consider a sale of the business as an eventual exit strategy.

 

As we expand into different areas, the tasting room will be the "home base."

Fast Facts

We have received awards for our mead at the highest level of mead competitions, known as the International Mazer Cup, in Colorado. There, in 2019, we took home bronze for our session style mead called Revolution, and in 2017 we also took home gold for a home-brewed mead that gave us the motivation to start this business. In 2019 we also received a bronze for our highly coveted Queen's Crown mead at the Finger Lakes International Competition, where over 2,000 sommeliers judge a huge variety of wine and mead. We are the 3rd commercial meadery to have received the new Farm Meadery License in NYS, which was created by law in 2019. This is a great sign that mead is on its way to becoming recognized as a beverage in its own category and becoming a main-stream product for consumers.

 

Our Queen's Crown mead took the bronze at the Finger Lakes International Competition.

 

About the Owners

Eric - Founder, mead-maker, a highly motivated individual with an extremely supportive and patient wife, has two Bachelor's degrees, one in History and one in Accounting/Finance (because why not), works full-time as a project estimator for a construction company, passionate about mead-making, and has been fully dedicated to manage and operate the Meadery since its early planning stages and inception.

 

Eric (R) and Mazer (L) run the show at Slate Point Meadery.

 

Brian - A childhood friend of Eric's, an employee of the Hershey Company, an early investor who found this venture to be very promising, while also assisting and advising in all matters related to the food and beverage industry.

Tanner - A local entrepreneur of coffee shops and cafes who has been a strong supporter of the Meadery since it began selling to his Poughkeepsie cafe back in 2017, has decided to invest in the opening of the new tasting room, as well as being a great advisor to the business.

James - Also a local entrepreneur in the food and beverage industry, having owned a variety of coffee shops as well as a staple in Beacon NY the Chill Wine Bar (where you can find our mead!) who has also been a strong supporter of the Meadery and invested in the opening of the new tasting room as well, also another great advisor to the business.

 

Our currant rosé.
 

Deal Summary

Deal Summary

 Issuer

 Salt Point Meadery LLC

 Doing Business As

 Slate Point Meadery

 Security Type

 Secured Loan

 Loan Purpose

 Refinance and growth

 Offering Amount

  $15,000 - $40,000

 Interest Rate

 7.50%

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 36 months

 Personal Guaranty  

 Eric DeRise

 Security Interest

 Blanket lien on assets of company

 Offered Portal 

 Honeycomb Portal LLC

 Offering Type

 Reg CF

 

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 Salt Point Meadery 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   $9.33   $111.98
 $500  $14.25   $46.65   $559.91
 $1,000  $28.50   $93.31   $1,119.82
 $5,000  $37.25   $466.59   $5,599.11

*Individual payments may vary slightly based on rounding.

Salt Point Meadery 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.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.*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 hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and Salt Point Meadery 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.

 

How Honeycomb is Compensated

Honeycomb charges Salt Point Meadery LLC a 8.0% 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.

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