Three Sisters Artisanal Meats
Three Sisters Artisanal Meats is a family-owned and operated company built upon a multi-generational tradition for crafting Northern Spanish style dry-cured chorizo. Our goal has been to provide the American charcuterie market with an authentic, all-natural, clean-label chorizo, with no artificial flavors, colors, or preservatives and zero sugar. This is a chorizo that is created from a centuries-old recipe directly rooted in the ancestral home of chorizo - León, Spain.
Given both the popularity and demand for high-quality artisanal charcuterie, we believe that our chorizo is uniquely positioned to become a staple within the American creative meats market. The versatility of our products, coupled with our story and quality, provide us with a solid foundation for increasing our production volume and sales reach, both retail and wholesale.
Our chorizo comes with an authenticity that sets it apart within the current marketplace. The problem we are solving is to give the American consumer the highest-quality chorizo created from a recipe direct from Northern Spain. A chorizo that can be used and featured in a multitude of settings. A chorizo that can be a compliment to any dish or charcuterie board. Three Sisters Artisanal Meats is a company that was born in Spain but made in America.
Why We're Unique
Three Sisters is more than just a recipe for chorizo, it is hundreds of years of tradition and culture that have sustained families like mine through the cold winters and long summer days of Northern Spain. Making and curing meats, whether pork or beef, is as much part of the landscape of León as the cathedrals, castles, and small villages that dot the landscape. My family on both sides is from those villages. Having been born and raised in California, making chorizo in the winter with my parents was a way that I could stay connected to Spain. My parents would share and reminisce about growing up in their villages, what life was like for my grandparents, and how it was like to be part of a large family living under Francisco Franco. It was like being transported to a different time and place altogether.
What is unique about Three Sisters is our story - our company is a way to honor and pay respect to my family and its traditions. The name Three Sisters is a homage to my parents - for the first ranch my father worked on when he came to California in 1972, and for my mother who is one of three sisters. I have a lifetime of knowledge in developing and making the product, plus a direct connection to the land and people who have made chorizo for centuries. I have been to my mother's village, Villagarcia de la Vega in León, and have made chorizo with my relatives in the traditional method and process. Three Sisters is a deeply personal enterprise and I have fully committed myself to creating the best chorizo possible that people will enjoy and continue to purchase.
Our Competitive Advantage
What makes us different from our competition is not just our Spanish heritage, but our complete commitment to maintaining the consistency of our recipe and our products. Our chorizo is a reflection of our family and culture. Because of that, we want to share our products with as many people as possible. We want to make our chorizo easily accessible and available, whether it is purchased online, through traditional retail markets, or enjoyed in restaurants, wineries, and charcuterie boxes. We want to make Three Sisters the premier brand of American-made, Spanish-style dry-cured chorizo.
The Opportunity Size
In 2020, the creative charcuterie market in the U.S. achieved $27 billion in retail sales and was named one of the top ten food trends for 2021, with little sign of slowing down. In fact, the demand for quality charcuterie and dry-cured meats has only grown. There is a tremendous opportunity for Three Sisters to achieve a sizeable percentage of the potential revenue within this market, given how our business model is structured and the current position of our company with respect to production and distribution.
Our Plan To Gain Market Share
We plan on diversifying our market channels and opportunities, both retail and wholesale. Over the past 2 years, we have been able to maintain a successful online retail presence while expanding our wholesale reach. Our plan includes creating relationships with regional and multi-state grocery stores, increasing sales to charcuterie and subscription box services, online wholesale markets, wineries, and catering companies that service clients within the technology, business, and airline industries. We believe the current market is large and accessible enough through attaining and maintaining a diverse customer sales base, it will allow us a greater opportunity to acquire a meaningful share of the market.
We have already done a great deal of work to solve this problem. We first started by producing and selling our chorizo in the San Francisco Bay Area for over two years, allowing us to refine and perfect our products. In recent months, we have acquired a new co-packer to manufacture and package our products, Espuña, LLC, in Gloversville, New York. Espuña is a USDA-certified producer of Spanish charcuterie and its infrastructure will allow us to increase our volume without sacrificing product quality. Moreover, we are using the services of ShipBob for the warehousing of our chorizo, giving us the ability to warehouse across the United States and make our products more easily accessible to our customers by reducing shipping time and costs.
What we have been able to do over the past several years is create a solid foundation for our company to grow comfortably by having the necessary infrastructure and relationships in place. We are not starting from zero - we are in an ideal phase of our development, because of the time and work we have invested, to grow and expand our sales reach in a meaningful way.
How We Make Money
Quite simply, we make money by selling our products to retail and wholesale customers. We will be offering 2 SKUs - a 6oz dry-cured link and a 3oz sliced chorizo package. These two products are the foundation of our company. In time, we plan on developing and offering new dry-cured products to our line.
Additionally, we have created a production and shipping structure that has reduced our overall costs, allowing us to sell our chorizo at a more competitive price point, thus making it more accessible and creating the ability for production and sales growth.
Our current projections forecast a break-even for Three Sisters by the first quarter of 2023. With both Fall and the winter holiday season on the near horizon, that is when we have historically achieved our greatest sales, with respect to units produced and purchased. Strategically, we are in an excellent position to create relationships with large-volume clients from different retail channels leading up to the 3rd and 4th quarters of 2022, when the demand is highest for artisanal cured meats.
The minimum production order is 1,000 pounds in finished dry-weight product.
- The final production cost will be $3.75 per 6oz link and $1.87 per 3oz sliced.
- There are two monthly fixed costs for ShipBob – receiving of product and storage of product:
- Receiving is $25 for the first 2 hours, $40/man-hour thereafter.
- Storage will be $40 per month.
- Pick, pack, and shipping costs are varied depending on the number of orders and the size/weight/destination of the order.
- The wholesale price will be $5.75 per link and $3.85 per sliced - $70 per link case and $46 per sliced case.
- The retail price on our website will be $9.99 per link and $5.99 per sliced - $120 per link case and $71 per sliced case.
6oz Link projections per 1,000 pounds:
A 1,000-pound dry weight order will produce approximately 2,600 6oz units.
- 2,600 units x $3.75 = $9,750 total production cost
- 2,600 units x $5.75 = $14,950 in wholesale revenue
- 2,600 units x $10 = $26,000 in retail revenue
3oz Sliced projections per 1,000 pounds:
A 1,000-pound dry weight order will produce approximately 5,300 3oz units.
- 5,300 units x $1.87 = $9,900 total production cost
- 5,300 units x $3.85 = $20,400 wholesale revenue
- 5,300 units x $5.99 = $31,700 in retail revenue
Highlight 1: Beginning production in 2018 with fresh chorizo links and ground chorizo in the San Francisco Bay Area, achieving consistent month-to-month sales growth, expanding to 14 storefronts, being able to maintain sales during Covid, and making the transition from fresh chorizo to an 8oz dry-cured link.
Highlight 2: Creating our online store and selling our 8oz chorizo link across the United States. Being featured in charcuterie boxes, Sonoma Valley wineries, restaurants from Colorado to Pennsylvania, and being a finalist for the Boise TrailMix competition in 2021. Between November 2020 and December 2021, we sold over 1,500 links wholesale and 500 links retail, achieving over $15,000 in revenue during that period.
Highlight 3: Moving our production to Espuña, LLC and working with a world-class manufacturer. Developing two products that will be ready for launch in May 2022. Partnering with ShipBob to make our products easier and more efficient to ship.
The feedback and response to our chorizo have been tremendous and overwhelmingly positive. A majority of our customers, whether retail or wholesale, are repeat buyers. We were able to establish and grow the brand in the San Francisco Bay Area, which is one of the most competitive food markets in the United States.
"Dear Jaime - Just to let you know, we think your chorizo is fabulous! Three Sisters is perfect. I just loaded up on some to share with friends and family. Thank you for making chorizo edible again! We love it."
“Spicy and delicious. Some of the tastiest chorizo I’ve ever had. We will definitely be ordering soon.”
“Wonderful, deliciously spicy product. Will definitely be ordering in the future!”
“Absolutely delicious flavor. Smell was wonderful, as well. Cute packaging. We have already ordered more units!”
On our social media pages, you can find more customer testimonials and validation of our chorizo. We've developed a loyal following because we have never strayed from what makes our products great, our recipe, and our passion for consistently making the highest quality, authentic and delicious chorizo on the market.
We have bootstrapped since day one. All funding has come from within our family. The benefit has been we have kept 100% of our equity and all decisions are made within the company. Our existing debt is minimal and there are no outstanding loans or funds owed on physical capital (i.e., machinery, vehicles, buildings). Our most important asset is the recipe, which is the intellectual property we have built the company upon.
Our team is a strategic partnership between Three Sisters Artisanal Meats, LLC, and Espuña, LLC, bringing together centuries of expertise and knowledge in the production of dry-cured chorizo.
Jaime Acebes Fernández - Founder and owner of Three Sisters Meats. Jaime has been making chorizo since he was 4 years old with his parents on their small ranch in Northern California. Jaime is a multi-generational chorizo maker, whose family on both sides has a long history of creating various traditional Spanish cured meats in the hills of León and Asturias. It is from his family that Jaime inherited the recipe and skills for making chorizo, turning the tradition into a company, beginning in Richmond, California, and now working with Espuña, our co-packing partner, to create our product line of authentic and delicious links and sliced chorizo.
Espuña, LLC - Espuna LLC is owned by Esteban Espuña S.A., a traditional and innovative producer of Spanish Charcuterie. The history of Espuña dates back to 1947 when Esteve Espuña began producing sausages using traditional recipes in his farmhouse near Olot, Spain. Today Espuña has state-of-the-art facilities that serve customers all over the world. Espuña’s success combines innovation and best practices to ensure that their old-world Spanish-cured meats maintain artisan craftsmanship for a truly authentic Spanish experience.
Use Of Funds
The intended use of funds at the target amount will provide us with the necessary capital to cover our production and operational costs, increase our marketing capabilities, attend food and trade shows to further promote our products, and attain purchase orders from prospective customers, specifically wholesale clients, thereby increasing our production volume and overall revenue in the process.
We have several large food shows that we will be attending with the goal of acquiring new large-volume customers, beginning with the Speciality Food Association Summer Fancy Food Show at the Javits Center in New York City this June.
Return On Investment
Based on current projections, we anticipate being able to generate and distribute an annual return to our investors. Additionally, we project a full repayment of the initial investment within 5 years.
As our production volume and overall sales continue to increase, we will obtain a comprehensive valuation of our company at which point we will be offering equity investment opportunities to investors. Those investors who participate in this initial round will receive preferential first look to acquire said equity shares in Three Sisters before being rolled out to the general market. Said equity investment round will allow for further investment into Three Sisters infrastructure and creates the opportunity for increased growth and profitability positioning Three Sisters to be acquired by either a domestic or international conglomerate.
Special Investment Perks / Limited Conversion Options:
For investments of $500.00 - $2,500.00, the interest rate is seven percent (7%), paid annually. The Notes shall provide for a maturity date of the earlier of (a) five (5) years; or (b) that date upon which the holder has received payments in the amount of the holder's initial investment.
For investments of $5,000.00 - $25,000.00, interest rate is five percent (5%), paid annually. The Notes shall provide for a maturity date of the earlier of (a) five (5) years; or (b) that date upon which the holder has received payments in the amount of the holder's initial investment.
Upon the Maturity Date of the Notes, the Company shall convert the outstanding principal balance and accrued interest thereon into Units of the Company's membership interests, with the number of Units to be issued upon conversion to be as follows:
- Investments of $5,000-$10,000 shall be converted into 2% membership interests - 6 available.
- Investments of $25,000 shall be converted into a 3% membership interest - 1 available
Chorizo Perks Packages
In addition to the financial ROI and opportunity for equity shares, we would like our investors to have an opportunity to “enjoy” the very product they are investing in and helping to grow…… thus we will be providing a “Chorizo Perks Package" based on the amount invested.
The investment tiers and the perks are as follows:
$1,000 investment = 1 case of either variety, 15 packages available.
$2,500 investment = 2 cases of either variety, 8 packages available.
$5,000 investment = 3 months 1 case of either variety, 4 packages available.
$10,000 investment = 6 months 1 case of either variety, 2 packages available.
$25,000 investment = 12 months 1 case of either variety, 1 package available.
For retail investors, we will also include a discounted wholesale price for all orders.
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