Shake up

About the offering

Hi, I'm Jamie Fahrner and I'm the COO and co-founder of Shake Up Cocktails. I grew up selling BBQ, watching horse shows and soaking up the summer at county fairs with my dad. The flavor of my childhood was an ice cold Lemon Shake Up, the classic hand-squeezed lemonade drink of fairs & festivals. So it was fate that when my husband and I decided to start a distillery, we did it on the largest stage in Indiana: the IN State Fair. We launched the first ever adult, all-natural, Lemon Shake Up canned cocktail. What happened next blew our minds... • We sold out across the state of IN all summer in 2022. • Soon chains like Kroger, Total Wine and Binny's were asking for us. • Our customers were asking for more flavors. • And before we knew it we had launched in 3 states: IN, IL and WI. I believe the reason people love our cocktails is... • Nostalgia — childhood memories drinking fresh lemon shake ups at fairs, carnivals, and festivals • Flavor — we make our cocktails with real ingredients, real flavor and real fun! So we're opening up ownership to our community, who has been supporting us from day 1. Your investment will help us: • Launch our exciting new brand to new grocery stores, liquor stores, bars and restaurants. • Expand into new states like Kentucky and Ohio. • Launch direct to consumer to sell online across the US. • Secure a $100K match from a local small business fund here in IN. Together we can make Shake Up Cocktails the Zest of Midwest! Cheers! The Market & Opportunity The canned beverage alcohol space is changing: • Craft beer sales & production are nearing 15% declines annually. • Malt-based seltzers like White Claw and Truly sales are dropping 16% annually. • Wine sales are experiencing a multi-year decline and the industry is in crisis. But why?! Because preferences are changing! • Millennials and Gen Z are choosing natural products made with spirits and real ingredients. • The gluten-free health movement is here to stay. • Quality is more important than quantity for younger audiences. Spirit-based Ready to Drink (RTD) cocktails are the fastest growing category in beverage alcohol. Our Winning Recipe Shake Up Cocktails check the boxes for consumer preferences in 2025 and beyond, but with an X-factor... NOSTALGIA! Not only do they taste like a perfectly balanced cocktail, Shake Up Cocktails have a familiar name and flavor profile. Even our branding is nod to the magic of golden hour at summer fairs, carnivals, theme parks and festivals. How We Scale We have found a recipe that works to scale our business from state to state: 1. Building buzz with aggressive social media marketing & advertising. This includes partnerships with influencers and pumping out consistent video content. 2. 500+ free sampling events. We have built a network of over 30 brand ambassadors who work part-time to sample our flavors at liquor stores, bars & restaurants, neighborhood festivals, beer fests, you name it! 3. Saturate retail, then grocery and bars. In new markets we focus on growing through independent stores while we build local relationships with grocery and popular bars. They love our value proposition because we help them sell the product with our sampling events. 4. Rinse & repeat in new market. Use of Funds Here's how we plan to use this round of investment funding: 1. 4x our growth recipe above: increase our ad spend to drive more buzz and demand, increase our sampling events by hiring more local brand ambassadors. 2. Hire full-time sales help to increase feet on the streets: can you believe we've done this all part-time thus far? Us neither We will be hiring a full-time VP of Sales, plus bringing both our CEO and COO on full time with the aim to triple our sales activity. 3. Expand into more new markets: starting with KY and OH 4. Improve our margin by 25%: until now we've only had the cash to buy all ingredients and materials in minimum order quantities, which is when they cost the most. If we buy a single pallet of cans, they cost us $.22 per can, but if we buy a whole truckload of cans, the cost comes down to $.10 per can! We can save about $80-100K per year just buying in bulk, and recycle that cash directly back into sales and marketing. Future projections are not guaranteed. Here's a breakdown of our use of funds. We have already raised $535K outside of Wefunder, investments will be used to support brand growth until profitability is met in 2028. • Sales hires — $180K — VP of Sales, CEO and COO (both include part-time sales focus in job descriptions) • Marketing — $220K — brand rollout, Direct-to-consumer website launch, increased social media advertising, increased sampling events • $200K — Buying inventory in bulk including cans and fruit puree Future projections are not guaranteed. Exit Strategy This path allows us to grow to roughly $4M in revenue in the next 5 years. We will then be in prime consideration for an acquisition by larger spirits and beer brands looking to diversify in the fastest growing category in beverage alcohol. (Projections are estimates based on current growth trends and market potential; actual results may vary.) Investment Structure: Convertible Note This investment is structured as a convertible note, meaning investors receive 8% annual interest and their investment converts into equity at a future funding event, rather than being a fixed return or revenue-share deal. Here’s how it works: • Interest Rate: 8% simple interest per year, accruing until conversion or maturity. • Discount for Early Investors: 20% discount on the share price at the next qualified equity round. • Valuation Cap: $2.5 million—meaning your investment converts at this valuation if the next round is priced higher. Example of a Potential Investor Scenario • If you invest $10,000, and we raise a future equity round at a $5M valuation, your note converts at $2.5M valuation (due to the cap). • You would get twice as much equity compared to new investors at the $5M valuation. • Your accrued interest (8% per year) is added to your investment at conversion. This structure is designed to reward early investors with lower entry prices and more equity upside, aligning our success with yours. Invest in the Taste of the Fair We're grateful you're considering investing in our dream! We're ready to make Shake Up Cocktails the zest of the Midwest! And remember, investments on Wefunder will allow us to secure a $100K match from a local small business fund here in IN. Cheers!

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