Dominion Spirits is a portfolio company which looks to build exceptional market share by joining the craft spirits marketplace. Dominion Spirits is the umbrella group for several brands, each of which has a specific branding hook.
Under the Dominion name there are three sub-brands, each serving a different portion of the spirits marketplace. These have been chosen to enable a certain degree of vertical integration in the manufacturing process.
The first brand is Dominion Whiskey, which is triple distilled corn whiskey aged in charred, white oak barrels. The water in the Piedmont of Virginia is sourced from karst topography, which gives spirits made with it a distinct character. Sourced from wells, this water has only natural mineral additives proving flavor.
Our second brand is Sandy Lane Dark Rum. This Barbadian rum will be produced in the tradition of the Eastern Caribbean, and use the barrels from Dominion Whiskey for aging. Our partners in this venture have deep roots in Barbados, and will ensure authenticity and quality matching the Sandy Lane name.
The final brand is Killer Cocktails. These are completed cocktails to be sold either to bars or individuals. The main selling point here is convenience- these ready-made beverages can be quickly poured by busy bartenders. Instead of taking the time to mix a drink, they can now dispensed quickly and easily straight from the bottle. For retail consumers, if they want a specific cocktail for their party they only need to buy one bottle instead of all the ingredients separately.
The market for craft spirits has been growing very strongly in recent years. Grand View Research estimates a CAGR of 33.4% through 2025, which demonstrates the scale of the opportunity. There have already been some stunning successes within this segment, notably the sale of the Casamigos tequila brand. It was founded in 2013 by three partners, each of whom put in $600,000. It was sold to Diageo in 2017 for $700 million, with an additional $300 million earn out possible for meeting performance benchmarks. Up to $1 billion in just four years on a $1.8 million investment- that's impressive.
Once the spirits are aged and ready for sale, Dominion will very aggressively market their products using all of the tools available to reach Millennials and generation Z. These groups are the largest consumers of craft spirits, and they are also those most likely to be reached by new branding techniques. Online influencers and celebrities will be brought in with equity stakes, and a robust presence in social media and popular culture will be cultivated.