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INVESTORS INFORMATION

     Sooner or later, every business will need extra cash to facilitate growth, to expand in the marketplace, and/or to keep up with increasing demand.  Here at Bub ‘n Mutha’s, we’re looking to make the leap and expand beyond New England.  It’s time also for us to begin hiring area Veterans so that we are staffed to meet the ever-increasing demand for our products.  Our growth has been the result of doing the right things at the right times, and we plan on doing the same with investors.  We’re not just looking for a check.

     Raising money via investors creates new obligations and we’re ready for that.  This is why we’ll be very selective in who we let invest in our company.  Since the investor(s), depending on the total of their investment, will want to know and understand the day to day operation, as well as have the right to have input, Bub ‘n Mutha’s can’t just take on a person with the resources to invest, but they lack industry understanding. 

     Someone who understands, the markets were in, the infrastructure necessary to navigate working with distribution or negotiating with larger stores, the financial stability needed to grow or the connections necessary for profitable growth make for a great investor.THE T THE

 

THE INDUSTRY

     BBQ is currently a $6 billion industry and so far Bub ‘n Mutha’s has had little to do with reaching those numbers.  However, by 2025, expectations are for growth to the $10+ billion range and that was a pre-pandemic forecast.  With so many learning to cook at home, that number could be even higher.

     70% of American homes own a grill and our rubs certainly appeal to that market.  But, 30% are not able to grill because they live in an apartment, condo or HOA where grilling is not allowed.  Here we shine.  Our blends of spices can create fantastic BBQ flavor low and slow or hot and fast in the oven, broiler, frier, or even in a pan on the stove top.

     We know that those who buy our products are using them on everything from avocado toast to fried zucchini.  Our belief is that we’ll be a force to redefine BBQ in the US.  That can be accomplished in the next 3 years.

     Barbecue is America’s meal.  We understand that and as a Veteran owned company looking to hire area Veterans as we grow is something to bring to our current marketing for real sustained growth.

 

BUB ‘N MUTHA’S CURRENT LEVELS

     As of today, our maximum capacity can produce just over 4,000 bottles per month.  If we retailed 100% of what we produced, that would generate $24,000 per month or $288,000 per year. Our wholesale pricing depends on volume to determine pricing for the client.  These unit prices range from $4.15 per bottle for orders of less than 3 cases, to as low as $3.10 for clients ordering more that 50 cases.  At maximum wholesale that would mean $12,400 per month or just under $150,000 per year.

     Therein lies the growth challenge.  We have about 50 wholesale accounts ordering between 2 and 40 cases at a time.  In addition, we have one client who we have a contract with to produce 4,000 unit 5 months per year.  In those months, we are maxed out.  We can’t grow stores, retail or add any other large accounts.  The solution is to find a way to increase production.

     Part 1 of the solution is additional equipment.  Here, the addition of a large commercial mixer and an automatic bottler would not only increase capacity, but also increase speed by a multiplier of at least 4.  That would mean we could reach a maximum of 16,000 units per month which would more than handle current demand while allowing us to market to areas of expansion.

     This creates the major challenge of space.  To warehouse product, have a space to place the machines to mix and bottle product and an area to receive ingredients and send finished product would require a much larger space.  And, since part of our marketing is that we are a BBQ company in a lobster town in Maine, we are limited to where we can house that.  And, since the space would have to be brought up to food safety standards, we’d eventually have to own it.  This is where an investment can make all of this possible.

 

THE INVESTMENT

     Ideally, we’d look for an investment between $150,000 and $300,000.  The difference being is that the lesser amount would require us to find a property we could get into immediately, retro fit it and work out an option to purchase within 3-5 years.  The higher amount would allow for an immediate purchase and the security of ownership.

     Here’s how the numbers would break out.

A.     Inventory - $32,240.  Regardless of whether we lease or purchase a property, we will have to work on it long before we can flip the switch to production.  Having inventory already packaged would create revenue while the reno work was done.

B.     Buildout and Machines - $60,000. This would apply whether an option or an outright purchase was executed.

C.     Debt - $15,000   Business debt, while being maintained, is limiting additional borrowing to purchase product, advertising, events and misc. 

D.    Marketing - $30,000   Includes digital marketing for Direct-to-Consumer web business as well as trade shows and direct marketing to potential retail accounts.

E.     Misc. - $12,260   Covers office, incidental and items not addressed above.

The above totals $150,000 and we can secure a facility to own for another $150,000 based on today’s real estate market.  That is the two investment options.

IF YOU HAVE AN INTEREST

     The ideal situation would be for a single investor but having multiple sources of experience and connections wouldn’t be a bad thing.  Regardless, once our number is reached, no more investors would be considered.

     If you’re interested, here’s what will happen.  I will send you an NDA for you to acknowledge and send back to me.  This way, we can freely discuss any aspect of the company you’d want to learn about.  I would suggest that if you haven’t tried our product, please do so and feel free to speak with any of the stores who carry our rubs.

     You can then decide if and how much you’d like to invest, terms, etc.  Simply email bubnmuthas@gmail.com and write INVESTOR INTEREST in the subject line.  In the body of the email, please write a short note about why you think you’d be a good investor for us and why you think we might be a good investment.