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Ohio

Western Reserve Distillers

About Documents
133%
$100,071.54 Funded
$75,000 Target
Closed Time Left
57 Investors
$75,000 Min. Raise
$300,000 Max. Raise
60 mo. Term Length
10.0% Interest Rate
Closed

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Overview

Western Reserve Distillers is a family-owned organic craft distillery located in Lakewood, Ohio just a few minutes from downtown Cleveland. We produce a complete range of world-class organic spirits including vodka, gin, rum, Blanco, reposado, bourbon, rye whiskey, and wheat whiskey right here in the heart of North East Ohio. All of these products are a direct result of carefully crafted farmer partnerships with organic farmers in Ohio, Louisiana, and the Jalisco region of Mexico. We strive to develop direct partnerships with all of our farmer partners as this allows us to ensure that a larger percentage of the revenue from the sale of their crops remains with them to reinvest into sustainable agriculture practices.

In addition to our organic product line, we have worked with a select number of award-winning distilleries in Tennessee, Kentucky, and Indiana to hand-select barrels of whiskey that are very close to our mash bills that have already been aged. While this approach may seem a little counterintuitive, it does provide a number of key business benefits and is a very common approach with the major distilleries in Kentucky.

By selling pre-aged whiskey, we are able to better gauge consumer acceptance of different mash bills and the price points of those products in the market. We are also able to generate critical revenue to invest in building our own barrel-aged organic whiskey and agave spirit products and gain a better perspective of how much product will be required to meet consumer demand.

We are raising $300,000 at an interest rate of 10.00%, paid over an interest-only period of 12 months and a fully-amortizing period of 48 months.

 

We have carefully crafted partnerships with farmers in Ohio, the Louisiana Delta, and Jalisco, Mexico.

 

The Project

Barrels of aged whiskey from Tennessee, Kentucky, and Indiana - $225,000
Raw materials for agave spirit barrel-aged program - $50,000
Honeycomb financing fees - $25,000

We were in the middle of a multi-market expansion when the pandemic hit in the spring of 2020. In response to the public need at the time, we stopped our market expansion of spirits and shifted focus over to the production of hand sanitizer. For nearly 4 months, 100% of our production output was dedicated to the supply of sanitizer to the local community in battling the spread of Covid-19.

In the fall, we returned to our expansion efforts towards growing our spirit line. We have since added Colorado, Illinois, Georgia, Tennessee, and Washington DC to states of distribution. The demand in these states in addition to the growth in Ohio has exceeded expectations. The current challenge is that we are out of aged whiskey inventory:  since we were focused on servicing the sanitizer needs of the local community, we missed the barrel purchasing window in the spring of 2020.

These extra funds will allow us to purchase the additional inventory required to continue to expand both in Ohio and the new markets.
 

After focusing on producing hand sanitizer during the early months of the pandemic, we are refocusing on our expansion efforts.

 

Check out this rave review of our Blanco from Tequila Aficionado!

 

Here's another Tequila Aficionado review of our Reposado!

Business

Past, Present, and Future

After nearly 18 months of construction, we opened our doors at the distillery in the spring of 2018. Like many other craft distillers, our first product was our organic vodka made from 100% Ohio-grown organic corn from Wayne County. Later that fall, we opened the restaurant and gift shop portion of the property. In the fall of 2018 we also moved in our organic whiskey stocks that were produced 4 years earlier at another organic distillery located in Chicago. By the end of 2018 we were selling 4 products onsite with limited distribution in the state of Ohio.

At the moment of writing this, we now have 21 products in the portfolio, with sales in 11 states including Ohio––and we have grown to a point where sales outside of Ohio now exceed sales within the state.

At this stage, our primary objective is to shift our focus from further developing the portfolio to scaling the portfolio in those markets where we have found partners. Based on what we have seen in Ohio, this will easily take the next 18 to 24 months. Once we have figured out the balance of product demand in those states, we will likely need to revisit our current production capacity before we choose to grow beyond our current markets.

 

Customers can enjoy our spirits in a Covid-safe environment with dividers and social distancing.

 

Enjoy our outdoor seating in all seasons – we provide blankets during the winter!

Awards


Winner of the Gold Medal and the #1 Silver Rum in the World at the 2019 World Spirits Competition, beating Diplomatico Planas.


Winner of the Bronze Medal at the 2019 World Spirits Competition (tied with Grey Goose).


Named the 2021 Tequila Aficionado Brand of Promise – the only US-made agave spirit to ever win this award.


Named the 2021 Tequila Aficionado Brand of Promise – the only US-made agave spirit to ever win this award.


Winner of the Gold Medal and 2nd Best Whiskey in the World Below 10 Years of Age at the 2019 World Spirit Competition.


Winner of the Double Gold Medal at the 2019 World Spirit Competition, betting Pappy Van Winkle 15 to achieve Best Whiskey in the World Over 10 Years of Age

 

About the Owners

Kevin Thomas

Kevin had a career in retail and foodservice, including food and beverage for Nestle which spanned roughly 25 years. Within that time he has worked in operations, marketing, innovation, sales & business development both domestically and abroad. In 2018, he stepped away from Nestle to dedicate his time 100% to Western Reserve Distillers.


Ann Thomas

Ann's career has been largely focused on marketing to the community and healthcare sector. She has held a variety of executive and field-based positions with the American Cancer Society, community hospitals, and regional oncology centers. She has also worked internationally while in Switzerland with the English-speaking Cancer Association.
 

We are thrilled to have you join us in our success!

Deal Summary

Deal Summary

 Issuer

 Western Reserve Distillers LLC

 Doing Business As

 Western Reserve Distillers LLC

 Security Type

 Secured Loan

 Loan Purpose

 Purchase inventory

 Offering Amount

 $75,000 - $300,000

 Interest Rate

 10.00%

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 12 months interest-only; 48 months fully-amortizing 

 Personal Guaranty  

 Kevin Thomas

 Security Interest

 Purchase money lien in equipment and spirits to be purchased 

 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 Western Reserve Distillers LLC.

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

 Investment Amount   One-Time Fee 

Potential Quarerly Return:

Interest-Only Period

 Potential Quarterly

 Return: Amortization Period* 

 Potential Total Repayment* 
 $100  $2.85   $2.50   $7.61   $131.74
 $500  $14.25   $12.50   $38.04   $658.70
 $1,000  $28.50   $25.00   $76.09   $1,317.40
 $5,000  $37.25   $125.00   $380.44   $6,587.02
$10,000  $37.25   $250.00   $760.88   $13.174.04

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 an amortization period. There are no prepayment penalties and Western Reserve Distillers 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.

Western Reserve Distillers 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 Western Reserve Distillers LLC 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

 

Testimonials

 

 

 

 

 

 

 

 

 

 

 

View our
Offering Documents

Comments

Q & A

+ Looking to invest with Western Reserve Distillers Does the fees come out up front so the real investment is not 10% per year but rather more like 7.5%

Hello Frank, The 2.85% investor fee is charged at the time of investment. This fee is capped at $37.25. To get an idea of what your return might be at certain investment levels, checkout the "Your Earnings Potential" section at the bottom of the campaign page. - Honeycomb Portal