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The Best Valentine's Day Gifts from Hollywood-Loved Brands
The Hollywood Reporter
·
Feb 4, 2022
If you purchase an independently reviewed product or service through a link on our website, The Hollywood Reporter may re...
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
A candy boutique for grown-ups
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.
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
Must-have products wrapped in luxurious packaging
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 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 2 franchise stores in Hong Kong. Our wholesale presence in 900+ accounts include gourmet grocery stores, online retailers, specialty gift stores, and prestige department stores like Bloomingdale's® and Nordstrom®.
*TTM revenue as of June 2022
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.
90% 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
Our diversified business model is invaluable for protecting and expanding our market share. Our omni-channel approach generates revenue from five main channels:
34.1% from e-commerce
18.8% from our 25 retail locations in North America
37.9% from over 2,000 prestige wholesalers like Nordstrom®, Bloomingdales®, Paper Source®, and high-end specialty grocers around the US and Canada.
6.8% from custom corporate gifting in over 1,300 corporate and event clients
2.4% from international sales (in Hong Kong, Australia, South Korea, Spain, and Japan)
Approximately 50% of our 2020 sales came from direct-to-consumer e-commerce and retail channels.
Market
Room to grow
Industry analysts valued the global confectionery market at $190B in 2018, and project growth to $245B by 2026. Sugarfina has gained significant share within the $42B U.S. market and is poised for continued expansion internationally.
Competition
Leading with confidence in the luxury candy segment
Sugarfina’s broad intellectual property portfolio provides a strong and protected competitive advantage in the market.
Established brand identity as the leader in the luxury candy space
50+ patents, trademarks, and copyrights on our branding and packaging
In-house creative and design teams are responsive and secure
Robust supply chain, inventory management, and shipping processes
Recently opened 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:
- Further expanding onto Amazon® USA and Rakuten® Japan
- Growing our specialty grocery store accounts, including internationally
- Opening select retail stores in strategic locations throughout the US
- Ramping up distribution at our new centralized Las Vegas facility to meet increasing product demand
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.
The net proceeds from this offering will be used to accelerate our growth rate as a function of having additional capital to invest in product development, marketing, sales initiatives, and working capital. These plans include potentially acquiring incremental complimentary consumer lifestyle brands depending on market conditions. The acquisition of incremental brands is partially contingent upon raising additional capital.
Founders
100+ years of combined experience in 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.
Disclaimers
Your investment is binding and irrevocable, although we reserve the right to reject it for any reason or no reason at all. Funds committed will remain in an escrow account maintained by Prime Trust, LLC until such time as a closing occurs. We will not be issuing share certificates. Securities offered through OpenDeal Broker LLC, a registered broker dealer, member of FINRA (www.finra.org), member of SIPC (www.sipc.org). We will pay, OpenDeal Broker LLC, a registered broker-dealer – a cash commission in an amount equal to 5% of the purchase price for each sale of Common Stock facilitated by OpenDeal Broker LLC. We have also agreed to pay 1% of the dollar value of Shares sold in this Offering facilitated by OpenDeal Broker LLC, plus certain offering costs. Please review OpenDeal Broker LLC’s Form CRS. OpenDeal Broker LLC may require additional documents or information from you to complete your purchase, you will be contacted by a registered representative in this event.
An offering statement relating to Sugarfina Corporation's Common Stock has been filed with the Securities and Exchange Commission and became qualified on March 3, 2021. Prior to making any investment in Sugarfina Corporation’s Common Stock, you should review a copy of the offering circular, as supplemented HERE, HERE and HERE, .or contact Sugarfina Corporation by phone at (855) 784-2734 or by mail at 1700 E Walnut Ave., Suite 500, El Segundo, CA 90245. No offer to sell any securities, and no solicitation of an offer to buy any securities, is being made in any jurisdiction in which such offer, sale or solicitation would not be permitted by applicable law.
Risks of early stage investment. Not an offer to buy or sell securities. This is a long-term speculative illiquid investment. Investment is not FDIC or SiPC insured. You may lose money.
An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement, which only means that the company may make sales of the securities described by the offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. The Offering Circular that is part of that offering statement can be found here. You should read the Offering Circular before making any investment.
An Offering Statement Regarding This Offering Has Been Filed With The Sec. The Sec Has Qualified That Offering Statement, Which Only Means That The Company May Make Sales Of The Securities Described By The Offering Statement. It Does Not Mean That The Sec Has Approved, Passed Upon The Merits Or Passed Upon The Accuracy Or Completeness Of The Information In The Offering Statement. The Offering Circular That Is Part Of That Offering Statement Is Here. You should read the Offering Circular before making any investment.
