Los Angeles, CA, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Renowned luxury candy brand, Sugarfina, known best for its Champagne Bears®, iconic Candy Cubes®, and patented Candy Bento Box® designs, has launched its first ever equity crowdfunding campaign, targeting up to a $25 million raise. This Reg A+ offering is made available through StartEngine Primary LLC, member FINRA/SIPC. The brand is offering its loyal fans and members of the public the opportunity to buy shares in the company in exchange for an equity stake; crowdfund investor perks include candy credits and bonus shares.
This campaign is the first of its kind for Sugarfina Corporation, and it comes 14 months post-acquisition – a purchase that was catalyzed by the predecessor company’s bankruptcy filing in September 2019. The sale closed at a $15.1 million price by Bristol Luxury Group.
Since acquiring the brand’s assets, new management has been tasked with commercializing the “present-day” Sugarfina, looking beyond the brick-and-mortar centric approach under previous ownership and joining the ecommerce land grab in a COVID-affected climate. In just a year after the sale, leadership has pulled the company out of distress and believes it is poised for profitable growth for the first time since inception.
Under the leadership of Scott LaPorta, former executive at GT’s® Kombucha, Levi Strauss, and hospitality brands like Marriott® and Caesar’s Entertainment®, the company boasts its ecommerce growth through a customer email list of more than 570,000, a total social media following of over 330,000, and a 25% increase in Sugarfina loyalty members following a restructuring of their Rewards Program. In Q4 of 2020, the company launched new digital storefronts on Amazon.com® and luxury Japanese e-commerce site, Rakuten® and introduced its products to the Australian market via high-end department store, Myer. New Sugarfina strategically opened dozens of accounts with gourmet grocery stores throughout the country, as well as with emerging and wide-reaching online gifting platforms – both industries saw exponential growth amid the events of 2020.
The funds from the campaign will enable leadership to accelerate the 5 main pillars of Sugarfina's growth plan:
- increase online, wholesale, and international distribution;
- launch innovation to delight current and prospective audiences, like their Tea, Cookie, and Gelato collections which launched in 2020;
- amplify marketing efforts to drive brand awareness, product trial, and customer acquisition;
- build inventory to meet demand from expanded distribution;
- and open a central fulfillment center in Las Vegas, Nevada, expanding supply chain capacity.
Sugarfina’s customer list is dominated by a coveted shopper – female, affluent, and luxury-obsessed millennials and young Generation Xers. These consumers resonate with the brand’s offering of impeccably packaged and highly giftable sweets, curated from gourmet confectioners from around the world. Sugarfina engages this loyal customer base with exciting brand collaborations and new product offerings year-round. In 2021, Sugarfina will launch buzz-worthy partnerships, including ones with a premium rosé wine company, a modern bridal brand, a hard-seltzer powerhouse, and a vegan and paleo specialty brand.
“We've been asked why we chose crowdfunding as our vehicle to raise these funds in lieu of partnering with venture capital or private equity, and the answer is simple – the potential and strength of this brand are a convergence of the dreams, delights and demand of Sugarfina's loyal audience. So, instead of commissioning big money, we’re inviting those who support and sustain the business to join us first. We believe we can continue to accelerate growth, bringing more sweet joy to more consumers, together," CEO and Co-Investor Scott LaPorta said.
You can learn more about Sugarfina’s offering at www.startengine.com/sugarfina
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 AT: https://bit.ly/2XfkEAa. RELATED RISKS: https://bit.ly/2X9nl6x.
YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT. THIS INVESTMENT IS SPECULATIVE, ILLIQUID, AND INVOLVES A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.
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