Westlake Brewing

About the offering

Westlake Brewing Company - Company Summary Overview Westlake Brewing Company is an established craft brewery in Dallas/Fort Worth that has earned placements in major retailers including Whole Foods, H-E-B, and Market Street Grocery. Currently the highest consumer-ranked brewery in the DFW area with a 4.9 Google rating, Westlake has built strong brand recognition and viral consumer demand. The company seeks investment to expand distribution, scale production, and solidify its position as a leading regional brewery. Market Position & Traction Since opening in 2019, Westlake has survived extraordinary headwinds—a global pandemic, declining craft beer preferences, raw material tariffs, major street construction, and local business closures—while outlasting competitors and building one of the highest-rated breweries in North Texas. With minimal sales team and limited budget, the company organically grew outside sales to ~20% of revenue through word-of-mouth referrals. Major retailers approached them unsolicited: Whole Foods (2020), Market Street (2022), and H-E-B (2022), demonstrating strong consumer pull. To date, Westlake has invested approximately $4.7M in brand development through product sales ($2.2M), equity sales ($1.8M), debt ($0.9M), and other sources. The company operates profitably with a high-margin taproom and growing wholesale distribution channel. The Opportunity While the overall beer market has declined, the $28.8 billion craft segment continues gaining market share nationally. Westlake's taproom revenue is limited by physical location, but wholesale distribution offers almost unlimited long-term growth potential that could eventually dwarf current taproom revenue. By simply optimizing canned beer sales through existing retail partners with their new distributor, Westlake could achieve 7x current shelf placements—limited only by inventory and marketing capacity. Growth Strategy Packaged Products: Coordinate shelf placement expansion at corporate level with major retailers (starting with H-E-B), paired with focused regional advertising, store demos, and promotions. Match production to support sell-through and solidify well-performing areas. Draft Products: As packaged product demand grows, it pulls along high-margin draft business to bars and restaurants. Additional salespeople will support longer sales cycles. Use of Funds 55% - Sales, Marketing & Advertising (100+ sampling events, focused advertising, 2 additional sales staff, delivery vehicle) 15% - Increase Production (double inventory, larger batch sizes for economies of scale, second-shift personnel) 15% - Restructure Debt (pay down/refinance senior debt) 8% - Broker Commissions & Fees 7% - Operating Reserves Investment Structure Convertible Note with 6% interest, $6M valuation cap, 36-month maturity. Converts to equity at trigger events (next qualified financing round >$1M, IPO, or acquisition). By 2030, forecasted to generate $400k+ annual free cash flow.

FAQ