Path to Acquisition | Part I: The Value of Our Growth

Acquisition remains a principal option for ROCK'N Vodka to generate a profit for its shareholders, with the brand's valuation playing a crucial role in determining the payout in the event of a transaction. So what factors determine the valuation of a company? Elements like sales, assets, intellectual property, customer base, and brand recognition all play a role. For ROCK'N Vodka and other spirits brands, these aspects are crucial in determining potential value. However, competition within the industry introduces additional costs: customer acquisition, ad bidding, retail shelf space, and market entry costs - which our team carefully considers when launching new markets, making sales, and marketing the brand. At ROCK'N Vodka, were committed to expanding into new markets and driving sales in the most cost-effective way possible. Our approach focuses on creating sustained growth rather than temporary boosts. We estimate that our average cost to effectively open a new market is $15,000, covering the cost of goods, freight, state licensing and registration, marketing, travel, distributor incentives, reporting costs, and labor. While opening a market for distribution may seem straightforward, our teams support is critical to achieving sales success. Without this effort, a market will experience no growth.This is why our team follows a strategic timeline for market launches. Our goal is to introduce the brand, grow sales, establish strong accounts, and position a local brand ambassador to drive long-term success. In a saturated industry with hundreds of brands vying for shelf space, securing high-quality retail placements is key to ensuring repeat customers an essential factor in increasing the brand's value.Repeat customers, or "Brand Champions" as we call them, are particularly valuable because they reduce the cost per acquisition, leading to a higher overall company valuation. The cost per customer acquisition within the spirits industry varies greatly, but we are taking every conceivable step to stay below any industry standard. Beyond building these champions, our team also gathers valuable data on account leads. Whether through sales reps visiting new accounts or distributors providing information, this data allows us to reach key decision-makers, and it helps us create custom audiences for ad retargeting and lookalike audiences to target future customers. A lookalike audience is an ad strategy that uses collected data to identify a new potential customer with similar characteristics to an existing one. The more data we collect, the better the algorithms we utilize are in effectively identifying a new customer, thus further reducing our cost per acquisition. To date, thousands of contacts from accounts across North America have been collected by our team, which has helped contribute to 45.37% of YTD sales from repeat customers.Our focus is on sustainable growth through smart market entry and nurturing lasting customer relationships that enhance the value of ROCK'N Vodka. Higher sales and a greater amount of repeat customers will lend to a higher valuation of the brand in the event of an acquisition, which is considered when the potential of sales is high and the route to market is easy. By continuing to successfully launch new markets and secure regular sales, we are growing the company towards a higher potential to be acquired. 

In Part II of our Path to Acquisition series, we will discuss the contributions the company has already completed which may increase the valuation of ROCK'N Vodka in the event of an acquisition. Other profit options for shareholders include mergers, regular IPO, and dividends.

*This series does not guarantee that acquisition will happen soon or at all, merely that it is a highly-considered option for the company.