#1QUILA MARIA'S TEQUILA RIA CROWDFUND PITCH DECK [email protected] Quila Maria Margarita Lopez Guadalajara. Tampa#22009 WINE & SPIRITS TASTING COMPETITION Winner ESTABLISHED MANO TEQUILA REPOSADO PORNOST CATED 2010 WINE & SPIRITS WSWA TASTING COMPON 1000 GOLD V 2010 WINE & SPIRITS WSWA TASTING COMPETITION Vinner CASTING CO 3 TA 2010 SPIRITS DOUBLE GOLD 2011 WINE & SPIRITS WSWA TASTING COMPETITION Winner 201 SPIRITS DOUBLE GOLD TEQUILA BLUE HEAD WINS DOUBLE GOLD FOR EACH STYLE OF TEQUILA "the double gold medal is reserved for only those spirits who receive a unanimous vote of all 24 judges on our panel, truly a remarkable feat." San Francisco World Spirits Competition. 2008 BLUE HEAD SILVER TEQUILA BLUE HEAD Silver PURO 100% AGAVE DECHO EN JALISCO MEXICO Crystal clear color. Nose offer pungent complex aromas. Intense flavors, yet attractively earthy. Wonderful development in the mouth, smooth and very expressive. Great character with a lengthy finish. BLUE HEAD HEPOSADO TEQUILA BLUE HEAD Reposado PURO 100% AGAVE HICHO IN JALISCO MEXICO CVIC PRO 250ML Pale watery color with a hint of gold. Complex aromas, a whiff of cinnamon with a malty grain note. Beautiful integration of spirit and wood, a full flavored style which is very elegant on the finish. [email protected] BLUE HEAD. ARTUO TEQUILA BLUE HEAD Anejo PURO 100% AGAVE HECHO EN JALISCO MEXICO DE ALE NOL HD PRO 30 ML Dark bronze. Exotic characters in great amounts. Wonderful butterscotch flavor surrounded by an earthy complex of flavors. Carried into the mouth cleanly and with an undeniable spirit. Twist of smoke links the flavors and leads to a full, powerful finish. SAN FRANCISCO WORLD & SPIRITS COMPETITION 2008 DOUBLE GOLD SAN FRANCISCO WORLD SPIRITS COMPETITION 2008 DOUBLE GOLD SAN FRANCISCO WORLD SPIRITS COMPETITION 2008 DOUBLE GOLD INTERNATIONAL WINE BEST SPIRIT IWSC GOLD 2009 IN COMPETITION SHOW#3"MARGARITAS ALWASYS TASTE BETTER IN MEXICO... ...BECAUSE WE MAKE THEM DIFFERENTLY HERE. WE BEGIN WITH REAL LIME JUICE, BROUGHT DIRECTLY TO OUR TEQUILA RIA FROM THE LIME JUICE CAPITAL OF THE WORLD, TECOMAN, MEXICO, JUST SOUTH OF OUR FACTORY. WE THEN ADD REAL CANE SUGAR, NOT FRUCTOSE, TO GET THE PERFECT TASTE OF SWEET AND SOUR. FINALLY, WE ADD JUST THE RIGHT AMOUNT OF OUR AWARD WINNING TEQUILA GIVING US THE PERFECTO MARGARITA. WE HOPE YOU ENJOY QUILA MARIA'S AUTHENTIC, FRESH TASTING MARGARITAS." SALUD MY AMIGOS. QUILA MARIA MARGARITA LOPEZ GUADALAJARA [email protected] Real Lime Real Tequila REAL MARGARITAS QUILA MARIA'S Made with Teque pede READY TO DRH 750ml QUILA MARIA'S TEQUILA SILVER 100% De Agave HECHO EN MEXICO 750 ml 40% ALC VOL + 80 PROOF#4THE "CHIEF" AND SAUL, OWNER OF TEQUILERA LAS JUNTAS, WITH A FRESH BATCH OF WEBER BLUE AGAVE READY TO BE ROASTED IN THE OVEN, THE FIRST STEP IN THE DISTILLATION PROCESS. LAS JUNTAS WILL CONTINUE TO DISTILL AND BOTTLE TEQUILA BLUE HEAD UNTIL SUCH TIME AS QUILA MARIA'S TEQUILA RIA IS DISTILLING AND BOTTLING. Do [email protected]#50 THIS IS THE BOTTLING LINE AND PRODUCTION ROOM WE BUILT AT TEQUILERA LAS JUNTAS. AT LEFT IS STAINLESS STEEL 1,000 GALLON, (3,780 LITERS) MIX TANK WHERE WE MIXED THE MARGARITAS. WE CAN PRODUCE APPROXIMATELY 2160, 1.75 LITER BOTTLES OF MARGARITAS, ONE RUN, WHICH YIELDS 360 SIX-PACK CASES. FIVE PEOPLE CAN ACCOMPLISH THIS TASK IN A 10 HOURS DAY, INCLUDING CLEANING AND PREP WORK FOR THE NEXT DAY'S RUN. PRODUCING AND BOTTLING MARGARITAS THREE DAYS PER WEEK AT THIS RATE, WE COULD BOTTLE APPROXIMATLEY 50,000 CASES PER YEAR OF MARGARITAS, OR TEQUILA. [email protected]#6LEVE THIS IS A 300 GALLON STILL THAT WILL PRODUCE APPROXIMATLEY 1,500 BOTTLES, (750 ml) OF TEQUILA DAILY. IF WE DISTILL ONE DAY PER WEEK, WE CAN PRODUCE AND BOTTLE 12,500 CASES (SIX- PACK CASES) OF TEQUILA ANNUALLY. ADA AKADELL DE 40 ADELL AC ADEL QUILA MARIA'S TEQUILA RIA With a very small tequila ria, comparable to the one we built at Tequilera Las Juntas, we can produce and bottle in excess of 50,000 cases of margaritas and 12,500 cases of tequila annually. Known dedicated to 1 brand (8) Dedication unknown (18) A small building of approximately 5,000 square feet is sufficient and gives us plenty of room to accomplish the task. Producing and bottling our own brands increases our margins dramatically, consequently increasing Unit holder value. Only 8 distilleries in Mexico produce and bottle their own brands, exclusively; Quila Maria's will be the ninth. Where Tequila Is Made Creates multiple brands (113) Tequila Matchmaker 13% 6% 81% TM Active Distilleries (139) 97.8% Quila Maria Margarita Lopez Guadalajara Active Brands (1196) .7% **************** Made in a dedicated distillery (8) 1.5% Made in a distillery that may be creating multiple brands (18) Made in a distillery that creates multiple brands (1170) Source: Tequila Matchmaker, October 2015#7HIGH WEST DISTILLERY SELLS TO CONSTELATION BRANDS FOR 55,000 Cases Sold in 2016 $160 MILLION October, 2016 [email protected] PHP LOREAR NOVEMBRE TOHON#8The worlds 10 largest liquor companies crave acquisitions of upstart brands that they can market globally. Consequently, they are willing to pay top dollar for brands that offer potential for worldwide distribution. Below is only a few that sold and released their numbers. Brand Hypnotiq 42 Below Chambord Ultimat Cabo Wabo Tequila Effen Leblon Zacapa Skinny Girl Category Buyer Average Liqueur Vodka Liqueur Vodka Vodka Cachaca Rum Heaven Hill Bacardi Brown- Foreman Campari Patron Jim Beam Bacardi (30%) Diageo Margaritas Jim Beam Year 2005 2006 2006 2007 2007 2009 2010 2010 2011 Revenue Price (Million) (Million) $2.2 $7.0 15.6 $9.5 $2.4 $10.0 $2.0 $12.7 $8.0 $7.7 $40 $91 $255 $91 $17 $68 $14 $200 $90 $96 Valuation (X Revenue) 18.0x 13.0x 16.3x 9.6x 7.1x 6.8x 20.0x 15.8x 11.2x 13.1x Once we have our Tequila Ria up and on, distilling and bottling, we believe we can attract an industry partner that would fund our expansion nationally. An example of this is Leblon. (see chart on left) Bacardi invested $14 million for a thirty percent stake. Lebron's sales were $2 million. Also, Hypnotiq, a Liqueur, had $2.2 million in sales and sold to Heaven Hill for $40 million. On the previous slide, page, Constellation Brands purchased High West Distillery in Salt Lake City. The purchase price was $160 million on 55,000 cases sold. No number was given as to the sales, or price, of their cases. [email protected]#9FOUNDERS. MANAGING MEMBERS. ADVISORY BOARD JESSE LEE CARRIGAN. FOUNDER. MANAGER, U.S. Jesse is the Co-founder of Tequila Blue Head and Quila Maria's Tequila Ria. Tequila Blue Head was founded in 2005 and produced and bottled it's first truckload of tequila,9,600 bottles in 2007. In 2008, Tequila Blue Head was awarded "Double Gold" medals in all three styles of tequila, Blanco, Reposado, and Anejo, by the San Francisco World Spirits Competition, perhaps the most prestigious of such organizations worldwide. At the time, it was said that is was the first time a spirit had accomplished such a task. Mr. Carrigan was responsible for the design of the logo, the bottles, and all aspects of the packaging. Additionally, he was responsible for all import licenses and permits required to distribute and sell the tequila into the United States. Within two years, Tequila Blue Head was being sold in eleven states by some of the largest and most respected distributors in the industry, including J.J. Taylor in Florida, United in Georgia, Athens Distributing in Tennessee, and DBI in San Francisco. In 2015, Tequila Blue Head's financial partner, died of a brief illness, causing cessation of necessary funding and ultimately the collapse of Tequila Blue Head. See "Tequila Blue Head," Slide 19. JOSE LEONARDO LOPEZ. FOUNDER, MANAGER. MEXICO The "Chief," a moniker given to him as respect for his Native Tribe, the mighty Purepacha's, of Michoacán, Mexico, is a Co-Founder of Tequila Blue Head and Quila Maria's Tequila Ria. The "Chief" was responsible for all things required to secure licensing approvals to produce and bottle tequila for export into the United States from Mexico, including labels and bottle design. He was a partner in Tequilera Las Juntas, the distiller for Tequila Blue Head, and oversaw all aspects of the distilling and bottling operation. Additionally, he was responsible for the building and construction of the production facilities, equipment manufacturing, harvesting of the blue agave and its preparation for the distillation process and charring of the ageing barrels. He is a recognized tequila aficionado, highly respected for his craft. He is native to the State of Michoacán, south of Guadalajara, and spent his childhood working in the blue agave fields. See "Tequila Blue Head," Slide 19. DALTON L. LOTT. INVESTOR. ADVISORY BOARD Dalton is founder and retired former CEO of Club Marketing Services of Duncanville, Texas. Lott also owns and manages Jet Center of Dallas (a fixed-base operator at Dallas Executive Airport), Club Air, Universal Sourcing Group, The Oak Grove Inn and Oak Grove Campground in Branson, MO, and numerous other real estate holdings. In the early 1980's, Dalton identified the development of the wholesale club movement, and formed a company to provide sales and marketing services to manufacturers who sell through wholesale clubs. Today, Club Marketing Services is among the largest firms of its type, with major business at Wal-Mart and Sam's Clubs. The firm and its affiliates have more than 200 personnel, with offices in Dallas, TX and Bentonville, AR plus Toronto, Canada, Puerto Rico and Mexico City. Lott sold this business to Advantage Sales & Marketing out of California in June, 2014 to spend more time with his family, pursue his passion to travel and engage in other investments. Dalton is a past member of the Parkland Hospital Foundation Board, served as Vice Chairman of Metro Economic Development Board with Bishop T.D. Jakes, and is past president of Duncanville Chamber of Commerce and Rotary Club. Dalton and his wife, Linda, a retired school teacher, are lifelong friends with Jesse and his wife, Dianne Carrigan, having gone to junior and senior high schools with each other. [email protected] Jesse Lee Carrigan Jose Leonardo Lopez The "Chief" Dalton L. Lott#10Cindy Jordan Buckingham T Gosney Thornton Dennis Buckingham CINDY JORDAN BUCKINGHAM. INVESTOR. ADVISORY BOARD Quila Maria "Jose Cuervo you are a friend of mine, I like to drink you with a little salt and lime..." Cindy brings a unique talent to the Company. When she was 24 years old she wrote "Jose Cuervo, You Are a Friend of Mine," Performed by Shelly West in 1983, the song hit the top of the charts and went on to be Billboards #1 Song of the Year. That same year, USA Today reported that Jose Cuervo Tequila sales skyrocketed to 14 million cases, and the number 1 selling tequila, a position they still hold. . As a song writer, Cynthia has agreed with the Company to change the lyrics from "Jose Cuervo" to "Quila Maria" and has written other songs to help the Company promote its products. Cynthia is a trained classical pianists and has had in excess of 4 million downloads of her music over the internet. She has recorded 18 CD's and her music is played regularly on cable radio and wellness environments worldwide. She has written two non-fiction books and four historical fiction books as well as Easy To Learn Piano instructional books. Her website is cynthiaprodu ons.com. T. GOSNEY THORNTON. INVESTOR. ADVISORY BOARD Tom is a cellular phone tower pioneer and entrepreneur. He has thirty years experience in the industry, in all aspects of the industry. He has developed national accounts being responsible for the wireless sales and marketing efforts, negotiated contracts with television and radio broadcast companies at local and national levels. He has negotiated contracts with land owners for site acquisition, dealt with the FAA, city, county and state's to assure the proper construction of the towers for digital (DTV) transition. Tom is also President and founder of New Horizons Towers which owns and operates fifty-four towers in three states. Tom is also an accomplished musician and vocalists. He is active in recording and performing in clubs and other venues and travels extensively promoting his music. Tom recently recorded a new album, "Songs & Tails Of The Old Chisolm Trail," with K.R.Woods and friends. Tom is the lead vocal on two songs, including famed ballad "Rawhide." Tom's wife, Pam, is an author, having written and published her first novel. Pam is also an Advisory Board member. KRWOOD SONGS + TALES FRIENDS STO RED STECALL DON EDWARDS RAY BENSON OLD CHISHOLM TRAN 150 YEAR ANNIVERSARY 1867-2017 MICHAEL MARTIN MURPHEY AUGIE MEYERS GARY P. NUNN MIKKI DANIEL. KIMMIE RHODES T GOZNEY THORNTON BOBBY KEEL BOB LIVINGSTON DOUC MORELAND DENNIS BUCKINGHAM. INVESTOR. ADVISORY BOARD Dennis is "the 'Jose Cuervo girl's' husband," he likes to say, and is also a singer and songwriter who has helped Cindy write and compose several of her songs. A seasoned entrepreneur, oil man, and multi-level marketing expert, Dennis saw opportunity early in the "deregulated electricity and natural gas" industry in Texas and has a substantial "downline" with Ambit Energy. Dennis is also the brother of Tequila Blue Head Co-Founder, Darryl A. Buckingham, deceased, and was responsible for all oil and gas operations in Texas for Buckingham Oil Interests. Dennis is also a shareholder in Tequila Blue Head. [email protected]#11$100 Tele REAL MARGARITAS QUILA MARIA'S 750 Payment voucher for 1 bottle. Drink margaritas, tequila, and have dinner with the "Chief," at perhaps the finest restaurant in Mexico, Santo Coyote. Dinner and cocktails on Quila Maria's, travel and accommodations on the investor. Available upon completion and opening of Quila Maria's Tequila Ria. $300 BLUE HEAD TEQUILA BLUE HEAD Silver FU 100% AVE HECHO EN JALISCO MEXICO Payment voucher for 1 bottle. $10,000 or More SANTO COYOTE INTE RESTA INVESTMENT PERKS SMAR $400 INVEST* BLUE HEAD TEQUILA BLUE HEAD Reposado PERO 100 AVE HEERDEN ALICA MEXICA Payment voucher for 1 bottle. $500 [email protected] Age is a beautiful thing, as will be the investors name on a gold plate on a barrel of tequila, celebrating the distilling of our first batch of Quila Maria's Tequila. BLUE HEAD BLUE HEAD Anejo PRO 100% AGRES It will be aged for five years before release and the investor will receive a voucher for a case, six bottles, at that time. TEQUILA HECHO INIC MEXICO Payment voucher for 1 bottle. WAT INTRATTEN $1,200 Receive payment voucher for 1 bottle each of margaritas, silver, reposado, and anejo tequila. $25,000 or More $2,400 Receive payment voucher for 2 bottles each of margaritas, silver, reposado, and anejo tequila. SINGLE BARREL AGED BLUE HEAD VERY ENESES BLISTEDERLA EXTRA AREA VSOT O SUL Proposed bottle design may change. *Product will be shipped through an online retailer. Shipping and handling to be paid by investor at time of order, redemption of the voucher. Not redeemable immediately as product has to be produced, bottled and shipped. Quila Maria's complies with all federal, state, and local liquor laws and all appropriate taxes will be paid prior to shipping. Offer good to those 21 years of age or older. All product must be redeemed via voucher.#12PAYMENT VOUCHERS & SHIPPING POLICY Payment Vouchers will be issued via Wefunder.com to investors who invest in Quila Maria's Tequila Ria, LLC's, Crowdfund as provided on Slide 15, above. The Payment Vouchers may only be redeemed for the products through licensed retailers. Currently, the Company only has one retailer in Florida who has agreed to accept the vouchers and ship to voucher holders. The retailer is allowed to ship product into 29 states; ALABAMA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, FLORIDA, GEORGIA, IOWA, IDAHO, INDIANA, KANSAS, LOUISIANA, MARYLAND, MICHIGAN, MISSOURI, NEBRASKA, NORTH CAROLINA, NEW YORK, NEW JERSEY, OHIO, OKLAHOMA, SOUTH CAROLINA, TENNESSEE, TEXAS*, VIRGINIA, VERMONT, WEST VIRGINIA, WASHINGTON, WISCONSIN, WYOMING AND THE DISTRICT OF COLUMBIA. Investors, in states not currently on the list for shipping, will be dependent on the Company securing a distributor and online retailer who provide such services. The Company believes that to be possible and every effort will be made in a timely manner to accomplish the investors ability to execute the voucher and receive the promised product. However, the Company has no inventory of margaritas and tequila; therefore, no vouchers can be redeemed and product shipped until the Company has the necessary inventory to supply to the retailer for shipment. Voucher holders will be notified when tequila and margaritas become available. Additionally, the online retailer may charge a nominal delivery fee and collect the appropriate sales tax, if applicable. Florida currently has a seven-percent tax rate. Additionally, all alcohol products must be shipped "signature required," and signed for by someone 21 years or older. *TEXAS allows online sales; however, no retailer outside of Texas is allowed to ship into the state. Once we have inventory, we will appoint a distributor and retailer that will ship to residents of Texas. Similarly, investors in other states not listed should be able to redeem their Payment Vouchers. Should the Company not be able to appoint online retailers in states where it is not allowed, the Payment Vouchers will be used to redeem other promotional items, i.e., shirts, hats, etc. Every effort will be made to honor the Payment Vouchers for our tequila and margaritas. SALUD AMIGOS! Quila Maria Margarita Lopez Guadalajara, Mexico [email protected]#13TM QUILA MARIA'S TEQUILA RIA RISK FACTORS The distillation of tequila is highly regulated in Mexico, extensive permits and the Consejo Regulador del Tequila (CRT), the self-governing agency of the tequila industry, issues requisite approvals. The CRT may not approve the Company's applications to build and operate a tequila distillery, nor approve the Company's labels or quality of products. Additionally, mandatory fees by the CRT to operate a tequila distillery are required, and if not paid in a timely manner, may result in forced closure by the CRT. The importation of tequila and margaritas into the United States is highly regulated and highly taxed. Once our tequila and margaritas are approved for bottling, and shipment into the United States, Federal Agencies FDA and DHS must approve the shipments and the Company meet guidelines required by such agencies. The Customs procedures are timely and expensive, and can cause extensive delays in our product being imported. The Distribution of alcohol products in the United States is difficult and highly regulated. There are in excess of one-thousand tequila brands, all vying for distribution. Major suppliers of highly recognized brands have a tremendous advantage and can, and do, make it difficult for smaller brands to achieve distribution. Consequently, smaller brands must out market and out sell the larger competitors with tremendously smaller marketing budgets, an extremely difficult and risky task. Retail shelf space is tight and difficult to obtain. Large chain retailers demand discounts to smaller and upstart brands, thereby shrinking margins. Smaller, independent retailers can be more difficult and demanding, requiring prices to match larger retailers, yet often demanding "free goods." As an example, they may require a "free case of margaritas" if they purchase a case of tequila. Large distributors and major brands often use such marketing tactics by giving away "free goods," as incentives to the retailer to purchase large volumes of a premium product. The Company will target distribution of its tequila and margaritas by using smaller, independent distributors. Smaller distributors with limited brands must sell their portfolio at higher prices. This results in overall shelf price being much higher and therefore creating less opportunity to attract "value buyers," those who purchase products with little concern for the products quality. Additionally, smaller distributors demand better terms regarding payment of inventory. Larger distributors usually accept thirty-day terms for payment while smaller distributors require sixty and ninety day terms. This can, and does, create cash flow problems for the Company causing the supply side of our business to slow. [email protected]#14RISK FACTORS CONT. The Company's initial plan of distribution is in Florida and the Southeastern United States of Georgia, South Carolina, Tennessee, Louisiana and Arkansas. The Company's tequila and margaritas will require the registration of the brands and get label approvals in each individual state. This is not particularly expensive, but slow, and could cause the Company's distribution plans to be slower than we anticipate. As the Company expands into other states, each one will also require such approvals. Initially, the Company will bottle Tequila Blue Head under contract with Tequilera Las Juntas in Amatitan, Mexico. Las Juntas currently produces several other brands of tequila, and the Company will be dependent upon Las Juntas to produce and bottle Tequila Blue Head in a timely manner. Distilling and bottling tequila is time consuming; consequently, the Company will be subject to having its orders fulfilled slower than needed, should Las Juntas be producing and bottling another brand. Initially, the Company's portfolio will include Tequila Blue Head and Quila Maria's Tequila and Classic Lime Margaritas. Major liquor marketers and brands have several flavors of tequila, margaritas and other ready-to-drink products available creating a tremendous advantage on the retail shelf. Shelf space is difficult to obtain and a major brand with several flavors can, and does, demand that a retailer inventory all flavors, squeezing the small brand off the shelves or prime placement. The Company does plan to develop other flavors of ready-to-drink margaritas; however, development of flavors and getting the required approvals is time consuming and expensive and will require the Company to spend its resources. Quila Maria's Tequila Ria, is a start-up company; investors should not invest more than they can afford to lose. They could lose their entire investment. The Company will not be able to build the tequila ria until substantially all of the $1,000,000 is subscribed, consequently the Company will have to rely on third- party bottling contractors and tequila distillery's. This will diminish margins increasing the difficulty of producing a profit. Although agreements are in place, no assurance can be made that the contractors will continue to produce and bottle the margaritas and tequila. The Company believes it can purchase bottling, distilling and other equipment sufficient to build the tequila ria with the allocated budget of $500,000. However, no assurance can be made that is sufficient capital to attain such a task. [email protected]