Xoma 🍸

setting the scene

• many new entrants in the liquor and spirits space rely on celebrities to build a brand ⭐️
  • Kendall Jenner has grown 818 so quickly that there should be a Kardashian spin off called “keeping up with 818” 🌴
    
  • George Clooney’s Casamigos leverages his famous friends to build brand awareness🏘
• most of these brands lack product differentiation and rely on celebrity marketing to gain a competitive edge 🕶
• this week’s company doesn’t need a celebrity to take on big alcohol brands, instead differentiating through product and mission 🆕

in a sentence

Xoma is a pulcatta, a sustainably produced agave spirit made from distilled pulque

• pulcatta: aguamiel (water+honey) of the maguey plant ferments and distills to become pulcatta
  • check out the process here  
• sustainably: sourced direct, while providing income for hundreds of farmers
• spirit: 40% abv, similar to a bottle of tequila or vodka
  

bulleted version: Xoma is neither tequila nor mezcal, but a new agave spirit that’s so smooth you’re bound to say “xo-my-goodness” 🤤

the basics

• industry: liquor, cpg, spirits
• headquarters: produced in Zacatlán, Mexico; distributed from Miami, Florida 🇲🇽🇺🇸
• year founded: 2020
• company size: 203 (the small team of 3 considers the 200 farmers across the supply chain an integral part of the operation)
• investors: Wharton Business School, Lauder Institute, Contrary Capital
• amount raised: $50k
• business model: dtc- online sales 

sponsored by 

• founders know that building an app is no easy task, but Techstars-backed startup, Apsy, is innovating how apps are built through their AI platform
  
• Apsy has quickly acquired their first 40 customers, generated $0.5M in revenue in their first year, and will be rolling out a new platform that walks users through building an app via verbal conversation
• Apsy is raising their $2M seed round (with more than half already complete) and running a crowdfunding campaign as well; this is a company worth paying attention to
  

due diligence

what we like

• 🧠 rethinking the supply chain: the alcohol production process results in excess waste, groundwater pollution, and carbon emissions from shipping
  • Xoma recreates this process by promoting sustainable farming practices and avoiding pesticides and fertilizers
• 🌾 transparent purpose: Xoma respects the farmers in their supply chain by paying them 25% sales and preserving ancient farming practices
  • these efforts help enhance taste and increase sales
• 👏 differentiated product: in a crowded market, entrants must differentiate and cater to their customer
  • this new agave spirit has a “dangerously smooth” taste sure to appeal to mezcal and tequila lovers
    

potential risks

• 👔 side hustle: all three team members have separate day jobs
• 📈 business model: after paying producers, distributors, and retailers, Xoma is left with 25% sales, which may slow efforts to scale
• 🍾 lots of liquor: anyone who has stepped into a liquor store knows how overwhelming it is to make a decision
  • with loyal consumer trends and hundreds of options, customer acquisition will be no easy task

founder profiles

• Anthony Morano (senior product manager @ Jobandtalent; prev. @ Culinary Heritage Corp, Huli)
• Iacopo Santini (co-founder @ Naya Homes; prev. @ Bain Capital Credit)
• Alex De Simone (also director of business development @ StarTalk Media; prev. @ VaynerTalent)

comps

• Casamigos 
• Espelon
• 818
• Sombra

why Xoma: Xoma is focused on transparency, preserving a tradition, and disrupting the spirits industry with their unique pulcatta; this is certainly what we call a top shelf startup 🍹