Xoma 🍸

a new kind of spirit

July 26, 2022

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 🆕

pronounced: sho-ma

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

comps

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 🍹

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