Quartermaster has partnered with Facility owner and Wine producer, AH Wines (www.ahwines.com) out of Lodi, California. Through an established agreement Quartermaster has become a licensed producer of wine in Lodi at a state of the art facility with the capacity to produce up to 500,000 cases per year. Our first production run set for completion in March 2017, and will be 1,000 cases so we have plenty of room for growth!
There are several excellent wine products on the market but due to poor branding, they will not be selected often at the consumer level. Quartermasters' solution to this problem is to approach the marketing of wine from another perspective – by licensing or creating the wine branding as the first step.
Initial sales will begin in California and throughout selected states by Aiko Importers, a larger US Distribution company.
Quartermasters’ first product is the ACES California CHIPSTACK 2015 Red Wine. This product is a red wine blend and has been created using Californian grapes and crafted by our winemaker, Jon Affonso. At the moment Jon is selecting our white wine which we plan to release in the Summer.
As you look at the bottle you are immediately drawn to the signature poker “chipstack” proudly displayed as the twist off cap on the bottle. On the label you are drawn into the trademarked ACES logo with the 4 suits creatively embedded into the individual letters as the poker chips fall around.
The ACES Brand was selected simply because it is fun! Who doesn’t like card playing and Poker? The ability to create a seemingly unlimited amount of creative labels coupled with the world wide phenomenon of the casino gaming culture offers several potential points of sale. Sourcing and producing our wine in the world renowned state of California adds a level of quality few regions of the world can offer.
The number of ACES Brand extensions are virtually limitless – white wine, rosé wine, collectors editions, etc. Eventually, we envision ACES expanding into gaming-related gear and accessories.
The revenue model will change from state to state and whether or not we use a distributor in the states that do not require one. As a Licensed wine producer we will have the ability to sell directly to retail in the state of California which will allow for larger profitability and/or price flexibility. When we sell our product through Aiko importers, for example, we will see a profit margin in the neighbourhood of 30-40%.
Our target demographic includes any person of legal drinking age who enjoys the allure of gaming or simply those wine drinkers that enjoy unique art presentation. We will start with a focus on the US market, and once established there, we will expand into the global market.
Through our primary distributor, Aiko Importers Inc., 'ACES' will gain instant access to 76 wholesalers in 40 states. Our product will be made available throughout wine shops, mass retail, carefully selected boutiques, regional casinos, and gaming outlets across the United States.
The ACES Brand also has interest from national retail chains such as Costco, Trader Joes, BevMo, Walgreens, and Total Wine – Quartermaster continues to be approached by distributors interested in the brand.
Use of Proceeds
A large percentage (70%) of the proceeds will be directed to product development which will include ordering all of the units for a wine build such as bottles, caps, labels, cases and the wine.
Approximately 10% of proceeds will be allocated to increase awareness of the ACES Brand through industry standard marketing measures and social media.
Approximately 15% of the proceeds will be directed towards business development initiatives.
Quartermaster plans to grow dramatically and will be reinvesting its operating cash flow in to the continued growth of the company. Once operations have reached an optimal level, management will consider the best exit strategy for its shareholders. This may include a strategic merger or acquisition, or an initial public offering.
Will Quartermaster sell the ACES Brand in Canada?
The initial launch will focus on USA distribution, However, it is our goal to have a presence in Canada. We are working on building a partnership with a distribution agent to enable this.
When will we be able to purchase the ACES wine?
The most recent update has our wine being bottled in the last week of March 2017. It would be fair to say we would see our product on shelves shortly after that.
Do you own the production facility?
We do not own the facility in Lodi, however we are seen as the producers at the facility when on premise. This allows for Quartermaster to be a licensed wine producer, with all of the rights and privileges.
For every share purchased in the placement, an investor will receive a single warrant issued at 25 cents for a period of 3 years.
What are warrants?
Warrants provide you the opportunity to purchase further shares at a pre-designated price. At any time over the term, you may exercise the warrant and purchase shares at the warrant price. If, for example, you own warrants for 10 cents, and a company's share price rises to 25 cents, you may purchase shares at below market value.