Client Success Story: Campo de Encanto Pisco
Campo de Encanto Pisco (Encanto) is a super-premium distilled white spirit made from grapes grown in the historic Pisco region of Perú. Encanto is harvested by hand, uses a proprietary yeast, always single distillation and aged in the sun for at least three years.
Poised for Growth
In just two years Encanto had moved into 12 states at 500 accounts reaching revenues of just over $1M in 2012. As the owners built the brand, they recognized they needed a plan for the for the future and a clear ownership structure to make them attractive to potential investors or acquiring companies.
“The spirit industry is dominated by four companies: Diageo, Constellation, Pernod-Ricard & Bacardi. They excel at distribution and marketing, what they don’t do well is develop new brands. We knew if we could build a reputable brand in a new market, we would be an attractive acquisition target. That’s why we hired Rolando Locci Consultants. Rolando worked with us to develop a three-year revenue and expense plan along with a strategy to build out sales and manufacturing to support that growth. Rolando also showed us how to organize our ownership structure so we looked sharp to outside investors. The work was world-class.”
Get Your House in Order
Encanto had three principal owners and one key investor. However, there was no documented ownership or investment agreement between the parties.
“As we grew it became clear that each owner’s stake was not clear. Rolando advised us to document all time and money invested by each owner and hire an outside attorney to draft ownership agreements. Going through this process allowed us to have those conversations openly before we were too large.”
Chart the Course
Encanto had secured one of the largest distribution partner in the U.S., Sazerac. This gave them access to literally every bar in America. But, the leadership team didn’t know how much investment they needed to drives sales and build up inventory to support that growth. With a three-year aging process, future growth needed to be planned many years in advance.
“One of the biggest challenges in doing long term planning for a fine distilled spirit is the long lead time before the product is ready for market. We age our product for three years. That means we have to predict sales almost five years in advance to account for grape purchasing, harvesting, distilling, bottling then aging. Rolando built an extremely dynamic long-term model. We could model different revenue scenarios that would automatically show us how many sales people we needed, how many grapes, bottles, corks, foils and ultimately how much money we needed to fund that growth. We were in better control of our business and had a very clear story for our investors. Rolando really took our game to the next level.”
Walter Moore – President, Founder