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TEXX
Business Plan 2012
A wonderful tequila, lots of agave and a sweet nish that we all enjoyed.
- Bob Bennet, Tequila Gringo
The pale yellow Tequila Distinguido feels light on the tongue, with a sweetness that turns spicy fast.
- Playboy.com
VERY IMPRESSIVE!
Table of Contents
Overview of the Organization
Page 8
Organizational Objectives
Page 9
History
Page 10
Page 11
Distinguished Team
Page 11
Brief Resumes
Page 12
The Offer
Page 15
The Products
Page 16
Production
Page 17
Producer Information
Page 18
Producer Agreement
Page 19
The Future
Page 20
Strategic Partnerships
Page 20
Page 21
Page 23
Competitor Analysis
Page 25
Customer Profile
Page 26
Page 28
Marketing Strategies
Page 29
Organizational Plan
Page 35
Financial Plan
Page 35
Appendix A
Page 36
Appendix B
Page 37
Emperial Americas
Sarasota Courthouse Center
1990 Main Street, Suite 150
Sarasota,Florida 34236
941 309 5408 OFC
941 309 3201 FAX
www.emperialamericas.com
OTCBB.TEXX
Organizational Objectives
Finalize national distribution commitment in our 10 Distinguished markets after the first 6
are profitable with monthly returns.
Launch additional brands by end of Year 3.
Achieve recurring gross profits of a minimum $10 million by Year 5.
Research and establish other brands to add to the existing portfolio by Year 3, ready to
market by year 6.
Organizational Values
Transparency in all dealings with key shareholders
Commitment to customers
Collaborative approach to new products
Major Milestones
Emperial Americas has achieved the following milestones to date:
Acquired significant market share for premium tequila in Texas, Illinois and Florida
Currently selling in Texas, Illinois, Mississippi, Florida, Louisiana and Georgia soon.
One of the fastest growing spirits companies in the first 90 days.
Tequila Distinguido has been identified as one of the few fresh spring water tequilas on
a national level.
Emperial Americas has revitalized the Distinguido brand and has other brand
suppliers inquiring about the business model.
Import their brands to the US and globally.
Commitment of management team.
Audited Financials for 3 years..
Restocking has added to growth - sustainable
Emperial Americas has the ability to offer quality with value brands as well for growth.
History
Emperial Americas acquired Tequila Distinguido which was
originally launched in 2005 in August 2008. The brand has
shown great promise of becoming a leading distilled spirit in
the high-end tequila category. The simple vision was to bring
quality and luxury back to a market that had become overly
commercialized. With professional experience in the wine
and spirit industry Emperial Americas, founder and in place
management began developing and cultivating relationships
with distributors, defining a niche, educating the trade, as well
as professional responsibilties on what it took to compete in the industry. With the teams past
experiences in executive positions they forged a bond with the Contreras family and Tequila
Distinguido.
Prior Distribution included:
Union/Glazers (Chicago) 1,500 cases
Deluca (Vegas) 280 cases
Republic National (Georgia-Florida) 550 cases
Mexcor (Texas) 2,950 cases
Glazers (Texas) -- 300 cases
LCBO Canada 510 cases (Global market penetration)
For three years Tequila Distinguido has stood strong as a brand respectfully because of the
skill set of the management team. Since Emperial Americas acquisition, Tequila Distinguido
distributed 700 cases in Texas alone and exceeded 1,300 case depletions by the end of 2008.
Today we have sold more than 2900 cases with todays equations would calculate as 5800
cases.
Award winner in the San Francisco World Spirits Competition 2012, Tequila Distinguido was
selected as the first product launched because of its current brand equity. The remaining
Emperial Americas product lines will launch during 2012-2013. With our marketing strategy we
can insure that these brands will enjoy the same successes that Tequila Distinguido has seen.
The established components of Emperial Americas marketing plan include:
Strategic partnerships with Regional and National On and Off Premise accounts,
25 to 30 percent gross profit for our distributors.
Meaningful trade programs
Marketing budget that does not depend on case sales
We are confident that our strategy will deliver results.
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Distinguished Team
As of December 31, 2009, Emperial Americas has four (4) full time employees and three
(3) Independent Contractors who serve as consultants to the company. No employee is
represented by a labor union. All Independent contractors has signed agreements with
Emperial Americas and are paid on a variable success basis dependent upon sales generated
by them.
As Emperial Americas grows there is a limited need to expand overhead because products
are sold in a three/four tier distribution system. Below is the organizational plan to increase our
team over a three year period. (See Appendix A for Job Descriptions)
Year 1
4 Distinguished Market representatives
6 Brand Ambassadors (2 per primary markets)
Year 2
2 Regional Business Development Managers
4 Individual Brand Managers
1 National Accounts Specialist
1 Export & Duty Free Manager
14 Market Representatives
28 Brand Ambassadors (2 per market)
Year 3
2 Regional Business development Managers
4 Individual brand Managers
1 National Account Specialist
14 Market Representatives
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Job Descriptions
National Brand Manager
The National Brand Manager is responsible for supporting and training our distributors and
on-premise staff throughout our distinguished markets. They are responsible for ensuring
the delivery of our consumer marketing strategies to build our brand. This position translates
national and regional strategy and drives innovative new programming from the field
thus making sure we continue to differentiate the Emperial brand and impact key target
consumers.
National Account Manager
The National Account Manager develops and maintains national and major on-premise
and retail accounts. Increase business among existing accounts and promotes Emperial
to new accounts in order to meet Emperials strategic business objectives. This position
requires familiarity with a variety of the marketing concepts, practices and procedures to
ensure our brands are visible in the premier on-premise accounts and prominently placed
within key retailers.
Regional Sales Manager
The Regional Sales Manager directs the actual distribution and movement of Emperials
products to the customer. They will coordinate sales distribution by establishing sales
territories, quotas and goals and establish training programs for market representatives.
This position will penetrate new markets and look for new products for which Emperial may
obtain license/ ownership rights in order to expand our brand portfolio.
Brand Ambassadors
Brand Ambassadors are the representatives of Emperial that will best portray our
products. Brands Ambassadors are an essential part of our team because they are the
tastemakers and influencers of their markets who will work hand in hand with our market
representatives. They are the regional personalities in each distinguished market who are in
We Create Brands People Talk About
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The Offer
We are seeking $2.5 million in a preferred equity transaction from investors who have an
interest in the alcoholic beverage industries. With its recent rise in social appeal, alcoholic
beverages are currently as much as a fashion statement as clothes and/or music. A Nielsen
study found that liquor store sales of celebrity driven spirits Increased 21 percent in 2010. Retail
tastings and sampling stations are incentive for brands creating awareness and equity as its a
key interaction opportunity to brand educate and create brand awareness. Thus, we believe
investors should recognize outsized returns from an investment in this industry.
Alcohol defies resilient trends due to its uplifting nature and social role in society. One of our
goals is to generate name recognition and brand awareness. Instant recognition will enable
us to spend very wise on marketing and more on quality control. Quality is essential for a
successful product.
The initial capital raise of $1.2 million U.S. dollars is required to meet outstanding obligations
and finance company operations. Uses of capital include:
Offices and Warehouse
Brand Identity & Education Awareness
Compliance & Licensing
Production Runs
Legal & Trademark
Strategic Partnership
Payroll & Administration
Market Research & Development
Subsequently the additional $1.3 million U.S dollars is needed to finance the following:
Marketing and promotion of existing brands
Product launches of each additional brand
Purchasing Inventory
Market Research & Development
Strategic Partnerships
Print Advertising
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The Products
Distinguish
Yourself.
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Production
Currently Emperial Americas uses: CIA Distiladora S.A. to package
our Tequila Brands. We will use other co packers to prepare bottle
and packaging for our other products: Broken Barrel Bourbon
and Independence Rye. We have the options to acquire 100
percent of brands from the production facility in Mexico for Tequila
Distinguido, Don Jose (well) and Don Contreras. In the event
our contract with our co- packers is ever terminated our plan is
to replace them with another company that is comparable in
quality. However, it is important to note that if this above were to
occur our business would not be disrupted.
In the contract packing industry it is customary and expected
that we make arrangements for our contract packing needs in
advance of the anticipate requirements. Accordingly it is our
business practice to mandate that our independent distributors
place their purchase orders for our products at least 14 days in
advance of shipping. Other than the minimum case volumes
requirements per production run we do not have a minimum
production requirements.
We Create Brands People Talk About
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Tequila is the most highly regulated commodity next to petroleum and has seen tremendous
growth from 1996. Where there were 46 distilleries in Mexico making 300 different brands of
tequila, today there are more than 89 distilleries producing over 617 brands. In 1997 you would
pay $80.00 per metric ton and since the new millennium the going rate has surpassed $2,000
per metric ton while still today the average pay for a Jimador is 500 peso per month ($50.00).
The agave is classified as a succulent and not a cactus. Agave belongs to the agave family
of the following plant Liliales. There are over 200 different classified types of agave and 400 to
500 actual different types. The Weber Blue Agave ranges in height from 5 to 8 feet and weighs
between 100 to 200 lbs but can reach 500 lbs. The agave takes 8 to 12 years to grown. Tequila
is Mexicos national spirit. Its derived from fermentable sugar which is its own source from the
Weber. Tequila is a distilled spirit from the juice of the agave. It may only be produced from the
Weber Blue Tequila grown in the State of Jalisco near the town of tequila.
There are two types of tequila: 100% Blue Agave and Mixto which is 51% from Blue agave and
the remaining from other sources.
Bourbon is distinctly an America spirit. To be labeled as a bourbon the distilled spirit must be
produced from a mash containing at least 51% with the remaining from either rye, wheat or
barley. Bourbon must be aged in new charred barrels made from white oak and not over 160
proof. It must age in barrels for no less than two years. Good whiskey is produced in Tennessee
form similar ingredients but is not labeled as Bourbon because the process is not included in
the legal description.
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Producer Agreement
Emperial Americas, Inc. has an in principle agreement and exclusive rights with the Contreras
family, owners of the land and distillery where the award winning Tequila Distinguido line
extensions are produced. Emperial Americas has been designate as the exclusive importer
into the United States for CIA Distilladora De Acatlan S.A. the distillery in Jalisco, Mexico
where all of the worlds tequila is produced. The distribution agreement between the distillery
and the company runs until May 31, 2017, and is renewable for successive five year renewal
terms unless either party gives the other party 60 days written notice of non renewal. Emperial
Americas is is the only company permitted to import or sell spirit bearing the trade name
Tequila Distinguido.
Importation
Emperial Americas has benefited from distribution- centric operations in managing the
current and future imported alcoholic brands in their portfolio. By reducing the overall
purchase cost that imported products offer, businesses can obtain a price advantage over
the competition while maintaining, or even increasing sales margins. While the potential
is great, inefficient import management and buying practices can eat away, or even
eliminate the benefit of importing the alcoholic beverages in the company portfolio.
Automatic suggested purchase orders from the distillerys and our distributors, seasonal
order bookings and collaborative forecasting with customers for import booking from a
national level are also set up in the companies platforms supported by final landed costing,
selling and sourcing currencies and tracking pre- paid inventory
Warehouse
Emperial Americas stores inventory that has been shipped to the US for sale in a secured
government stateside industrial facility. The warehouse becomes an extension to the
order desk and a critical part of our business and it support us in delivering our promise of
improved customer service.
Distribution
We currently have relationships with a complete network of independent distributors and
brokers throughout North America through whom we sell our products. The policies of
our distributors vary; we have entered into written agreements with a number of our top
distributors for varying terms; leaving a few distribution relationships that are solely based
on purchase orders. Product distribution will be facilitated by utilizing national distribution
channels of the large corporations with whom we have secured strategic alliances. Such
corporations will typically have nationwide coverage.
Tequila Distinguido is distributed through:
Glazers (Texas)
Premier (Florida)
RNDC (Mississippi)
RNDC (Arizona ,Colorado)
Deluca(Las Vegas)
RNDC (Louisiana)
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The actual sales & marketing of our brands are technically handled by the individual
distributors of each state. While this is true, it is imperative that Emperial Americas, Inc., the
supplier, maximizes the effectiveness of each distributors effort by giving them the necessary
tools, support and marketing efforts needed to ensure our brands will get the respect, push
and full commitment we desire.
This strategy will ensure a presence in the market that increases awareness and builds demand
as well as a certain cache.
The Future
Emperial Americas product offerings will be positioned as the new, innovative alcoholic
beverage brands that fill the need of the market: distributors, wholesalers and retailers and
subsequently the consumer. Our initial product is Tequila Distinguido; Emperial Americas, Inc.
will release more brands followed with beverage industry blitz introductions
Exit Mechanisms
Emperial Americas, Inc. will pursue future brand acquisition opportunities and /or public
transaction within 5 years. To give the company a solid base earnings has been factored
into the valuation calculations and reflects a conservative rate for this industry. As Global
Fortune 500 companies continue to place an increasingly high value on global portrait
brands people will coninue to demonstrate a willingness to pay a premium acquisition
price for unique established trademarks.
Strategic Partnership
Partnerships are the Foundation for Success.
Partnerships enable Emperial Americas to make continuous improvements and achieve a
sustainable competitive advantage. By sharing with others, Emperial Americas is able to direct
resources and capabilities to projects that are most important. We will focus on creating the
brands people talk about. We will launch more print advertising by selecting the mediums that
best support our brand, philosophies and positioning. The blend of advertising will consist of:
Regional lifestyles
Trade publications,
Men and women lifestyle magazines
Celebrity based and key industry functions
We will also participate as sponsors for key events that will give us the best branding
opportunities.
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Usher, Timbaland, Missy Ellliot, Pharrell Williams, Paris Hilton, Scott Storch, Shemar Moore, Alonzo
Mourning, Christina Aguilera, Kanye West, Jermaine Dupri, Dwyane Wade, Busta Rhymes, DJ
Clue, and many other notables.
HMG is a promotions company with a desire to create innovative events while providing
quality services to clients and consumers. Established in 2001, hard work and commitment
have allowed HMG to rise to elite status while creating the highest in attendance record,
star studded urban and/or crossover events in the nation. emperial has formed a strategic
partnership with HMG to leverage HMGs success and ability to get our brands in front of the
Whos Who those who create the trends the rest of the world follows. HMG will be the
official coordinator for special events and parties with our distinguished markets.
By forming these strategic alliances, emperial will gain competitive advantage through
access to resources, markets, technologies, capital and people not otherwise available to us.
We intend to leverage our alliances to expand our business more quickly and efficiently by
extending our technical and operational resources.
MAHONEYBROWN INTERNATIONAL To compete and win in the 21st Century global economy
emperial must embrace a flexible, entrepreneurial mindset and culture. The speed of business
has never been greater - it is imperative for our organization to rapidly identify, validate,
articulate and act on growth and change initiatives. MAHONEYBROWNs goal is to assist
emperial in doing this. MAHONEYBROWNs unique service platform and methodologies, highly
credentialed team, and vast industry and project experience enable emperial to draw on
a wide pool of experts in the area of strategic planning, business development, marketing,
corporate identity and branding. MAHONEYBROWN provides the leadership, project
management, market expertise, operational know-how and technical proficiency we need to
ensure our success.
MAHONEYBROWN is a leading provider of professional advisory services to startups, small and
medium-sized enterprises, middle market organizations, and Fortune 2000 companies pursuing
growth and entrepreneurial initiatives.
Other key partnerships include but are not limited to:
Glazers Distributing - www.glazers.com
Republic National Distribution - www.rndc.com
Los Cucos Mexican Cantina (regional accounts)
Slick Willies Pool Hall (regional accounts)
Buffalo Wild Wings (regional accounts)
Hillenburg Motorsports (Indy Car racing)
Twins Liquor
Specs Fine Wine and Spirits
Our model is designed to assemble strong individual and independent brand identities within
a balanced brand portfolio, and a solid global platform from which we will launch and build
new and existing brands. We are confident in our ability to gain significant market share
through solid strategic sales, and a strong marketing infrastructure. To make our brands stand
out amongst the rest, we will take our time on each of the brands dedicating the resources
necessary.
We Create Brands People Talk About
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volume up 3.8 percent and revenue up 2.5 percent ($26 million), Premium volume up 8.9
percent and revenue up 6.7 percent ($80 million), and High End volume up 3.2 percent and
revenue up 0.2 percent ($3 million impacted by strong performance of Super Premium).
As the DISCUS data details, the beverage alcohol industry continues to sustain its record of
expansion and growth. With the U.S. economy experiencing recovery from recession, there
is significant anticipation that this trend will continue and the industry will also grow with the
occurrence.
Social Trend
The growth in distilled spirits retail sales is showing little signs of slowing in the near future.
Increasingly wealthy consumers will continue to trade up and due to time constraints are
eating out more frequently. The continued tendency for consumers to drink more and drink
better alcohol beverages is fueling this growth across all categories. From higher priced
craft beers to imported wines to ultra premium spirits, the typical consumer is becoming
more astute and that is translating to a healthier bottom line for the industry.
The US bar and nightclub industrys drinking establishments primarily engaged in the retail
sale of alcoholic drinks number around 45,000, down from 60,876 in 2007, according to Dun
& Bradstreet, which generated approximately $18 billion in combined annual sales revenue,
with the average establishment accounting for about $200,000. States representing the
majority of drinking places were: Wisconsin with 4,489; California with 4,449; Texas with 4,388;
New York with 4,283; Illinois with 3,634; Pennsylvania with 3,572; Florida with 3,191; and Ohio
with 3,201. Other significant states included Michigan, New Jersey, Louisiana, Indiana, Iowa,
Minnesota, and Washington. US consumer spending on services, an indicator of recreational
activities like bars and nightclubs, rose 1.9 percent in July 2010 compared to the same
month in 2009. Sophistication and luxury are key elements driving this resurgence. A wide
selection of high-end spirits served in unique barware is just one of the things consumers
have come to expect when dining out or enjoying a cocktail at their favorite watering
hole. In addition to the luxury cocktails, spirits flights are also proving to be wildly successful.
A flight of spirits allows diners to compare a selection of small samples of a specific spirits
category (i.e., Bourbons, tequilas, whiskies, etc). Rosa Mexicano (Washington, D.C. and
New York) allows customers to try flights of sipping tequilas from three different categories blanco, reposado and aejo.
Alternatively, cocktail flights are also being served. This is generally a set of themed-based
cocktails. For instance, Nacional 27 in Chicago offers mojito flights consisting of the Mojito
Classic, Pomegranate-Ginger Mojito and a Pineapple Mojito. Sugarcane Lounge in New
York City allows large groups to sample from a wide variety of creative cocktails presented
in a cast-iron Cocktail Tree. The tree offers 12 cocktail samples for $50. With so many
cocktails to choose from, our diners often have trouble settling on just one, said Paul
Tanguay, who created the flights menu at Sugarcane Lounge at Sushi Samba.
As spirits sales continue to soar, successful on-premise establishments are capitalizing
on these new trends and creating their own to bring consumers the ultimate cocktail
experience.
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Several other cultural, demographic and industry-specific trends explain the continuing vitality
of the wine and spirits industries:
The increasing cultural acceptance of the potential health benefits of moderate wine
and spirits consumption.
A thriving cocktail culture.
The American consumers slow but steady movement away from beer, in favor of
wine and spirits.
More pairing of food with spirits, especially with Latin and Mexican cuisines.
Economic Trend
Consumers today have a larger disposable income
Urban populations are growing and feeding periods shortening
Research suggests that coffee sales increase if the product is made more available to
the consumer
The 2010 U.S. Consumer Discretionary Spend shows that consumers spent more than
$70.0 billion dollars on beverage alcohol, with more than half going to the wine and
spirits industry
The distilled spirits industry is a major contributor to the nations economy generating
around $600 billion in U.S. economic activity annually. Over 1.2 million people are
employed in the United States in the production, distribution and sale of distilled spirits.
Social Responsibilty remained top priority
Industry recession resilient proved to be true.
Gains in market share should position spirits for strong growth as economic recovery
gains momentum.
Sunday sales targets : GA, CT, IN,MN,TX, WV, NC and OK
COMPETITOR ANALYSIS
Emperial
Americas
Diageo
Pernod
Ricard
Bacardi
Fortune
Brands
Financial Backing
Customer Exclusivity
Distribution Channels
Product
Commitment to Technology
Cost Structure
Selling Force
Total
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CUSTOMER PROFILE
Emperial Americas, Inc. has two customer categories: On-premise and Off premise customers.
On-Premise
The 2011 market showed that On-premise premium spirits
account for 50 percent of total US sales with only a slight
growth in off -premise spirits. The focus in our distinguished
markets must be in the on-premise establishments where
brands are made. Our clear and present visibility at all
of the top establishments insures we are building brands
and forging consumer relationships. We have assembled
the personnel to accomplish this task. Our plan focuses
on working with the level of management that oversees
the actual doing of work frontline management at the
selected on-premise establishments. All the decisions will be
made by those managers who have a direct impact on
productivity, profitability, relationships with customers and
workplace morale. Our skilled team of professionals will
equip the on-premise frontline managers with the required
knowledge, skills and understanding to enable them to
manage their own performance and that of others, as well
as the important operations related to their work.
Off premise
Emperial Americas Inc. will continue to target major liquor retail
establishments in the Distinguished markets. The majority of wine &
spirit retailers provide a number of merchandising and promotional
program opportunities to suppliers of beverage alcohol brands. All
program initiatives must be applied for through formal
applications based on specified promotion criteria.
Our efforts are designed to ensure key visibility in the
top retailers. Our retail Programming will feature our
brands through:
Contest Advertising
Mail- in Coupons
Instant Rebate
Neck Tags
In-store tastings
Ethnic Niche Programs
End Aisle
Shelf Extenders
Shelf Talkers
Limited Time Offers
Value-Added Special Events
Air Miles
We Create Brands People Talk About
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Solid Foundation
Our focus will be to grow our company organically and through
distinguished acquisitions
We will continue to create long-term value for our shareholders,
reinforcing our future as a global leader in the alcoholic beverage
industry.
We will frequently assess our plans in reaching our objectives and
goals while staying proactive to the changes of our industry.
We will continuously study our consumers behavior to meet their
changing demands.
We will work tirelessly with our team of personnel and distributors to
insure they are delivering first in class brands to market.
We will form strategic partnerships to assist us in building a solid
infrastructure from which we will launch new and existing brands.
We will look for innovative and fresh ways to advertise our products while being
responsible in all of our marketing efforts.
We will stay diligent in balancing risk and reward.
We intend to create the worlds best brands. We have the products, we have the people
and we have the plan. We create the brands people talk about.
We Create Brands People Talk About
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The positioning of the brands face and a spokesperson will increase sales and positive
consumer feedback. A list entrepreneur in both the music and fashion worlds, is the kind of
person that people gravitate toward because they want to have a little piece of his life, the
music, fashion, marketing and now beverage man The Experience behind the project,
Tequila Distinguido is positioned to become a fixture in the homes, hotspots and hands of the
grown n sexy group.
The marketing challenge starting spring of 2012 is to generate consumer excitement and
demand in key metropolitan areas about Tequila Distinguido. Media will capitalize on the
pro sports seasons and focus immediate efforts on public relations and grass roots marketing
to generate an immediate buzz amongst consumers and trendsetters by creating a of high
profile media driven events in which Tequila Distinguido should have brand presence. Media
will coordinate a Tequila Distinguido street team to distribute Tequila Distinguido during key
events throughout the year. Getting the product directly to the consumer, on a hot summer
day or at a high profile event will instill brand recognition, in turn making it a favorable pick
when the consumer purchases a sports drink at their favorite retail location. During this time,
Media will also implement a strategic public relations program in addition to other types of
mediums including, new product launch events, charity tie-ins, in-store promotions and crosspromotional tie-ins that will carry over.
MARKETING STRATEGIES
Emperial Americas believes that the Companys sales and marketing strategy of leveraging
the impact of advertising, public relations and consumer awareness for its brands across all
media platforms with an emphasis on social marketing applications which at comparatively
low cost investments gives it a significant competitive edge.
Marketing Objectives
Establish a strong presence in the US market by taking advantage of the convergence of
all forms of media as marketing formats which at an extremely limited cost to the company
generate branding and consumer attention and activity:
Establish significant high-margin sales
Sustain high to premium margins
Sales Forecasts
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Based on the market research undertaken, strategies developed and existing customer
relationships, the following sales forecasts were developed (in units):
PRODUCT
Tequila Distinguido
2010/2011
2012
2013
2014
3,250
9,100
16,800
21,000
3,000
15,000
20,000
600
5,000
7,500
1,000
2,000
5,000
13,700
38,800
53,500
TOTAL
3,250
The marketing approach will demonstrate the benefits of the Emperial Americas products.
Emphasis will be placed on how the brands create superior cocktails mixability. The key to the
marketing strategy is to identify the top ten accounts within the top ten markets and work with
the decision-makers who have the authority to acquire new brands. We refer to this as our
Top 10 Rule. These individuals can be reached through personal selling, direct mailings, trade
shows and business calls. Other marketing strategies will include, but are not limited to:
Social Media Marketing
Interactive Consumer WebSite - Tequila Nation
Radio and Television Advertising
Print & Billboard Advertising
National Spectator Sporting Sponsorships (Indy Lights, Geico)
Event Sponsorships
Product Placement
Social Media Advertising/Marketing
The company will utilize all major social media marketing applications, such as YouTube,
Facebook, Linkedin, Twitter, Squidoo and Blogger to create and position its products at
the consumer level. The company will produce highly entertaining web based television
commercials featuring our brands. A unique production concept utilizing a special
character or spokesperson (such at the Geico Gekko) for the Company has been
developed through its Dallas based
Advertising Agency. This creative
concept will be launched on
YouTube, and later on Broadcast
Television and Cable. These
commercials are designed to drive
traffic to the new consumer site,
Tequlia Nation.
We Create Brands People Talk About
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Event Sponsorships
The companys primary focus is to sponsor grassroots type events that allow our consumers
to reach out and touch our products. Some of the events we have already secured
include:
South by Southwest
Austin, Texas
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On-Premise Promotions
Continuing with the company philosophy of grassroots marketing concepts, On-Premise
promotions will be a vital part of our on-going marketing efforts. Our Social Media
campaign through our consumer website will drive traffic to these events. Utilizing our
special character from the TV campaign and professional fashion models the Company
will be very high profile and the top nite spots in our target markets.
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Organizationl Plan
Emperial Americas is creating premium brands; therefore, developing a certain
collection is essential. To cultivate our collection of premium brands, we must take a
discretionary approach. We do not feel this can be achieved through traditional mass
advertising. Our model is restricted to our distinguished market approach, online brand identity
and targeted event sponsorship initiatives within our first year. Additionally, branding methods
including product placement, strategic partnerships, custom retail programming, large scale
targeted advertising and expansion into global markets will commence in our second and
third years only after we have achieved critical brand foundations.
Financial Plan
Underlying Assumptions
Management believes by participating in an attractive and growing industry that the
company benefits from a number of favorable trends.
Sales invoices to be paid when units dispatched from factory
Creditors paid 15 days end of month
Each months production is sold in the following month
Factory operations are in Jalisco, Mexico
Pay as you go has been assumed for income taxes
Financial Highlights (Best Case Scenario)
Emperial Americas growth estimates are moderate compared with the growth rates
exhibited by selecting peers during their first five full years in the market with expectations
of sales continuing to grow over the projected period.
Cash positive in each year of operation
Emperial Americas cash surplus reinvested into the brand portfolio
We Create Brands People Talk About
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Risk Dimension
Perceived Risk
Development
Zero
Management
Low/Moderate
Marketing
Low/Moderate
Financial
Low/Moderate
Valuation
Low
Financing
Low/Moderate
Exit
Low/Moderate
APPENDIX A -
Investor Equity
$1,200,000
Investor Equity
$1,300,000
Additional Brands
$ 800,000
Raw Materials
$ 200,000
Working Capital
$ 300,000
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APPENDIX B
SWOT ANALYSIS
The following SWOT analysis captures the key strength and weaknesses within the company
and describes the opportunities and threats facing Emperial Americas.
Strengths
Our portfolio consists of some of the most distinguished brands in the market today. The
brands in our portfolio serve as the backbone to our company. Our flagship brand Tequila
Distinguido, has already shown great promise in the high end tequila sector, Emperial
Americas has additional higher-growth and higher-margin brands that sustain our ability to
penetrate some of the fastest-growing categories and markets in the premium wine and
distilled spirits industry.
Strict financial discipline.
The management team of Emperial Americas all share the same philosophy of spending
corporate resources wisely. We have a long-term view and patient approach that enables
us to balance risk and reward. We maintain a conservative capital structure that emphasizes
stability over volatility. The management team stays abreast of the governmental and social
issues that affect our business. Under this philosophy we invest in our brands and people,
make opportunistic investments and acquisitions, and return value to our shareholders.
Weaknesses
Undeveloped presence.Emperial Americas as new company in the premium distilled
spirits supplier market will excel for many reasons. Currently operating in Texas, Illinois and
Florida Emperial Americas is still consider to be in the infancy stages of brand development.
Coupled with a strong organizational structure and key relationships in our distinguished
markets, Emperial Americas will acquire significant market share by creating and
implementing a solid strategic sales, marketing and distribution infrastructure for our brands.
To make our brands strong, we will take the time necessary and dedicate resources behind
each brand.
Competition from other suppliers which operate in our distinguished markets. Emperial
Americas competes with spirit companies across a wide range of consumer drinking
occasions. Increased competition and unanticipated actions by competitors or customers
could lead to downward pressure on prices and/or a decline in Emperial Americas
market share in any of these categories. Emperial Americas has a leadership team of
very experienced business leaders who collectively have many years of experience in the
industry managing our business segments and distinguished markets. We are confident
that this assortment of talent will insure our growth and stability in the wine and spirits
industry.
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Opportunities
The customers palate is premiumization.
Research shows that there is a strong and growing market that is available to be
tapped which is evident given that many of the top industry brands of wine and
distilled spirits enjoying significant popularity today were all but non-existent 5 to 10
years ago. Consumers are open to trying new brands. Likewise, people will trade up
to a better product because they are aspirational. emperial is able to capitalize on
this phenomenon in all of its branding and marketing efforts to insure significant organic
growth and sustained shareholder value.
Solid growth in a slowing economy.
Consumption of wines and spirits has not declined during challenging economic
times as evident through market share gains despite a slowing economy. Consumer
interest in the cocktail culture continues to strengthen. Specifically, research shows
that consumers cannot get enough of Mexicos native spirit and the growing love
for tequila. Emperial Americas first product launch is Tequila Distinguido. Distinguido
captures the market by satisfying not only the growing interest in tequila and cocktails
but the consumers desire for high-end premium brands.
Threats
Decline in social acceptability of wine and spirits
In recent years, there has been increased social and political attention directed to the
beverage alcohol industry. Emperial Americas believes that this attention is the result
of public concern over problems related to alcohol abuse, including drink driving,
underage drinking and health consequences from the misuse of alcohol. emperial
seeks to be at the forefront of industry efforts to promote responsible drinking and
combat misuse and works with other stakeholders to combat alcohol misuse. Emperial
Americas approach is based on two principles: set world-class standards for responsible
marketing and innovation; and promote a shared understanding of what responsible
drinking means in order to reduce alcohol related harm.
Regulatory decisions and changes in the legal and regulatory environment.
Emperial Americas operations are subject to extensive regulatory requirements which
include those in respect of production, product liability, distribution, importation,
marketing, promotion, labeling, advertising, and environmental issues. Changes in laws,
regulations or governmental policy could cause Emperial Americas to incur material
additional costs or liabilities that could adversely affect its business. Our management
team has a number of years of experience in the industry and will continuously monitor
changes in the regulatory and political environment as it relates to emperials business
to insure we are able to proactively address any potential issues.
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