Business Overview:
Co-Broker Opportunity!
In this respect, we are willing to offer 20% of our success fee commission for introductions to prospective buyers.
The Company is an exclusive consumer products distribution company that maintains licensing agreements with leading brands, including Budweiser, Coca-Cola, and Sriracha. The Company packages these brands’ products and wholesales them to big-box retailers, including Walmart, Big Lots, and Costco. The Company is highly regarded by these retailers as its products continually have strong performance.
The Company employs an experienced leadership team, including a COO with over ten years of tenure. The team runs daily operations while allowing the owner to focus primarily on sales activities and big picture Company strategy. The Company employs 22 full-time individuals, but during the peak production season, it ramps up operations to include up to 300 temporary workers.
The Company’s operations are seasonal, with a large portion of sales coming between September and November, when retailers make purchases for the upcoming holiday season. The Company can decrease seasonality through the development of product targeted at non-primary holidays and seasons.
Due to the nature of holiday retail sales, the Company receives sales commitments from retailers in the early months of the year. As of May 2022, the Company had received $26.7M in commitments for 2022. Actual sales routinely fall 10%-20% higher than commitments received.
The Company operates out of a 92,126 square foot facility which holds its office space and production operations. During peak production season, the Company utilizes a 32,919 square foot warehouse to hold finished inventory. Both facilities are owned by the Company’s owner through a related real estate holding entity.
The owner wishes to sell the Business as they feel it is on pace to grow to a level too large to run on their own but is open to a variety of transition and structure considerations, including rollover equity scenarios and/or maintaining their current role for multiple years moving forward.
Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found, please email us and request a PDF version.
Once we receive your NDA and answers to some basic questions, the Confidential Information Memorandum (CIM) will be sent to you by the project manager.
IF YOU DO NOT RECEIVE A FOLLOW-UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email us for support. Thank you in advance!
To request more information regarding this listing, simply check the ADD TO REQUEST INFO BASKET button and when you are done searching and have made all your selections, simply click on the REQUEST INFO button at the bottom of the page.
Property Features and Assets:
Two facilities. One 92,126 square foot facility consisting of 11,861 square feet of office space and 80,265 square feet of production area, and another 32,919 square foot facility consisting of 4,100 square feet of office space and 28,819 square feet of storage area. Real estate is available for sale or for lease.
Market Competition and Expansion:
Investment Highlights Include:
(1) Prominent Brand Licensing Agreements: The Company holds licensing agreements with some of the largest and most well-known worldwide brands. These agreements allow the Company to use these brands’ products in gift sets it wholesales to retailers. Current agreements in place include Budweiser, Coca-Cola, Sriracha, Old Wisconsin, Bud Light, Lindt, Corona, and Modelo.
(2) Established Supplier and Retailer Relationships: The Company maintains healthy relationships throughout its robust supply chain, including a relationship with a Chinese broker who handles the sourcing of all Chinese products. Similarly, the Company’s relationships with retailers are strong. As a leading player in its market, the Company has earned respect from leading big-box retailers.
(3) Tenured Leadership Team: The Company’s leadership team consists of ownership, a tenured COO, a highly-skilled creative director, and a controller. The leadership team handles daily operations and frees ownership to focus on sales efforts and high-level strategy.
(4) Product Creativity and Flexibility: Big-box retailers enjoy working with the Company due to its creativity and flexibility in the gift sets it creates. The Company collects retailer feedback on its products and works with them to tailor it towards retailer needs. By maintaining an open dialogue, retailers feel more connected to the process with the Company than it typically does with other wholesalers.
Growth Opportunities Include:
(1) E-Commerce Channel Development: While the Company’s products are offered through a few retailers’ e-commerce platforms, the Company does not operate any of its own e-commerce channels. By developing an e-commerce channel, the Company could substantially increase its margins by cutting out the retailer and utilizing the fulfillment resources it already has in place.
(2) Off-Peak Business Growth: Currently, the Company’s sales are heavily concentrated in the traditional holiday season (September to December.) To reduce seasonality, the Company could emphasize products it has already created for off-peak holidays, including Easter, Valentine’s Day, Mother’s Day, and others.
(3) Pursue Additional Brand Partnerships: While the Company maintains relationships with some of the world’s largest brands, pursuing additional agreements could open the Company to new markets. The Company has identified the children’s market as a potential market to expand into. The Company is currently in discussion with Cheetos, Dunkin’ Donuts, and others regarding new licensing agreements.
Reason for Selling:
Current growth requires additional assistance.
Additional Details:
- The property is owned.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is not a franchise resale opportunity.
Relevant Links: