While the eight-day celebration of Hanukkah isn't necessarily rooted in gifting, it's become more common to give gifts ov...
Second half update
2022 second-half update
- Revenues +6% vs LY
E-com, Wholesale, and Gifting +16% vs LY
Launched Strawberry Champagne Bears®, Celebration Bottles, La Patisserie, and Cookie Cravings collections
New premium distribution (e.g. The Ritz Carlton Yacht Collection, The Colony Hotel Palm Beach, and more)
Featured on Good Morning America
New South Florida Expansion - October 2022
Opened a new retail boutique in Miami Brickell City Centre
Increase brand awareness
Drive E-commerce sales
Opening a second retail boutique in Boca Raton, Florida
Our core values of luxury, playfulness, and innovation allow us to appeal to our coveted customer and brand fans listings of over 1.2 million primarily fashionable, influential women.
The Most Wonderful Time of the Year!
2023 Q1 Product Launches
2023 Planned Innovation and Collaborations
Problem
Why can’t candy be luxurious and playful?
In the $42B US confectionery market, something has been conspicuously lacking—imagination. Leading brands still box themselves into one of two categories: their products are either just chocolate, or they’re just for kids.
Where’s the household name synonymous with fun, artisanal sweets that excite the senses? Where’s the candy brand for grown-ups?
Solution
Sugarfina: a candy boutique for grown-ups
We sell luxury confections, with something for everyone
Sugarfina is a candy brand for the adult palate, combining high-quality, luxury candy with a fun and engaging aesthetic. We have created a new space in the luxury confections market, and continue to redefine what it means to be a luxury candy brand.
Partnering with artisan candy makers from around the world, we create a wide range of products that offer something for everyone: from gummies to cordials, cocktail-infused candies, and chocolate bars.
We have a uniquely fresh approach to gourmet confections, which has attracted a loyal, coveted customer who is fashion-forward, influential, and seeks luxury products that speak to her lifestyle.
Product
Our candy is both a delicious treat and a sight to behold, thanks to our in-house creative and design teams and unwavering commitment to quality. We are constantly innovating with unique, on-trend products and flavors.
We also feature collaborations with food & beverage, entertainment, and lifestyle brands to create must-have, newsworthy, and shareable products and experiences:
Truly Hard Seltzer®
The Simpsons®
Hampton Water Rosé™
Pressed Juicery®
Alfred Coffee & Kitchen®
Tito's Handmade Vodka®
Casamigos®
Hello Kitty®
One of our signature offerings is the Candy Bento Box®. This patented packaging system allows for a totally customizable “Design Your Own Candy Bento Box®” experience, both online and in-store.
Traction
$31M+ in TTM revenue
Wholesale and Gifting Concierge are our fastest-growing channels in the last 6 months as we expand distribution across the country. E-commerce continues to grow as we market to our extensive customer list and attract new customers every day. In addition to our own e-store, Sugarfina products are sold through Amazon® and Rakuten®—one of the largest E-commerce sites in Japan.
We’ve established 25 retail boutiques throughout North America, and franchise stores in Hong Kong. Our wholesale presence in 900+ accounts includes gourmet grocery stores, online retailers, specialty gift stores, and prestige department stores like Bloomingdale's® and Nordstrom®.
Customers
PR and social media drive brand fame
Sugarfina has a thriving social media presence with 340K+ followers across all our social media channels, including customers, celebrities, and influencers.
85+% of our customers are women, which informs key aspects of our product and marketing strategy:
Create content that resonates with fashionable, influential women
Develop products and design packaging with playful and colorful aesthetics
Focus on self-purchase as well as gift-giving
We’ve received incredible PR coverage from Us Weekly, People Magazine, USA Today, Forbes, Real Simple, Food Network, Food & Wine, E! Entertainment, and so much more! Sugarfina was also awarded Best Rosé Candy by Cosmopolitan Magazine in 2020 in their Wine Awards.
Business model
Five complementary sales channels
We believe our diversified business model is invaluable for protecting and expanding our market share. Our omni-channel approach generates revenue from five main channels:
45% from over 2,000 prestige wholesalers like Nordstrom®, Bloomingdales®, Neiman Marcus®, and high-end specialty grocers around US and Canada
25% from our 25 retail locations in North America
22% from E-commerce
6% from custom corporate gifting in over 1,300 corporate and event clients
2% from international sales (in Hong Kong, Australia, South Korea, and Japan)
Over 50% of our 2021 sales came from Direct-to-Consumer E-commerce, Retail, and Gifting Concierge channels.
Market
Room to grow
Industry analysts valued the global confectionery market at $226B in 2021, and projected growth to $308B by 2029. We believe that Sugarfina is now in a position to increase its market share in North America.
Competition
Leading with confidence in the luxury candy segment
We are a leader in the luxury candy and premium gummy space. Thanks to our IP portfolio, this position is largely defensible.
Sugarfina’s broad intellectual property portfolio provides a strong and protected competitive advantage in the market. As we continue to build our brand through increased marketing and branding campaigns – including our iconic packaging – we believe our market share is likely to increase.
Established brand identity as the leader in the luxury candy space
50+ patents, trademarks, and copyrights on our branding and packaging in the United States and more globally
In-house creative and design teams are category-leading
Robust supply chain, inventory management, and shipping processes
Recently opened a new centralized operations center enabling sales distribution expansion
International and domestic network of artisanal candy makers with proprietary formulas and ingredients
Vision and strategy
Nonstop innovation, worldwide distribution
In addition to expanding our ever-growing list of products—such as our new Sweet Fruit Purée, Kombucha, and La Pâtisserie Collections —we are continuously scaling distribution.
Our near-term plans include:
Continue accelerating our revenues on our own E-commerce platform and Amazon® USA
Growing our travel, specialty stores, and premium grocery account distribution
Adding additional dropship accounts serviced by our Las Vegas operations center
Opening select retail stores in strategic Florida locations
We are also exploring further wholesale expansion into Europe, and Southeast Asia, as well as into the UK and the Middle East.
Through all this, we will continue to invest in digital marketing to continue scaling our higher margin and higher growth eCommerce business.
Funding
Board member Diana Derycz Kessler has 20 years of experience serving as a principal investor in Bristol Capital Advisors, with investments in growing public and private companies in a variety of sectors. She holds a Law Degree from Harvard Law School and a Master’s Degree from Stanford University.
Board member Paul Kessler is Principal, Portfolio Manager and Founder of Bristol Capital Advisors and has extensive experience with emerging growth companies and plays an active role in guiding both company boards and executives. He is well versed at identifying deep value activist opportunities and has overseen over 650 investment transactions.
Founders
100+ years of combined experience in building aspirational consumer brands
We are a dedicated and forward-thinking team focused on building the future of the candy market.
After acquiring Sugarfina, we have focused on placing experienced executives and leaders in charge of their given specialties and have empowered them to thrive in their roles, which has resulted in a unique culture of innovation and collaboration. The Sugarfina leadership team has a combined 100+ years of experience in consumer businesses and building aspirational consumer brands.
Our team of industry veterans draws on a well of experience from the confectionery, finance, entertainment, luxury goods, and logistics industries.
CEO and Co-Investor, Scott LaPorta has a proven record of developing under-managed businesses into high growth enterprises. He raised over $30 billion of capital, and led or co-led over $10 billion of M&A activity, as a CFO of companies in the hospitality, lodging, and casino industries. Scott took on a turnaround role at Levi Strauss that included leading strategy, planning, and restructuring, and ran three divisions of the company. He also led the commercialization, growth, and eventual sale of Bolthouse Farms with a category-leading exit.
Summary
Why invest
Loyal Customers and an Amazing Product
We have already proven through our efforts to appeal to our target audience of sophisticated, influential, and fashion-forward women, that we have an ideal product-market fit.
We believe our stellar reputation among these key audiences positions our brand to grow sustainably and rapidly in the next few years.