July 13, 2020
While the world continues to adapt to the effects of COVID-19, for investors alike, there are few industries presenting opportunities for growth, innovation, sustainability, and cultural leadership. Thankfully, we believe the $300B a year, global adult beverage industry is one of the few industries positioned for continued growth and financial opportunity.
That being shared, here are some important updates, insights, and recaps for our community of investors, Members, and customers during the 1st and 2nd quarters of 2020.
The company is currently holding an internal share price of .29c, up from .20c from the first offering. This share price is set internally void of 3rd party valuation. Factors for the increase have been the company’s successful raise, the successful development of technology and platform, several high-profile media and event partnerships, and an overall proof of concept on the business and marketing model that the company now knows can be scaled presuming continued momentum by investors, Members and customers.
COVID-19 is affecting the company, both in negative and positive perspectives.
ONE ROQ online sales are growing ahead of launching our formal e-commerce sales strategy, while new distribution deals to enter and grow retail – and fulfill Member Carry Requests – have been delayed due to on-premise shutdowns across the country as major distributors have elected to freeze their new item platforms until on-premise markets fully restore. While these temporary freezes will delay our entry into the on-premise market (bars and restaurants), they are not affecting our ability to grow e-commerce (direct-to-home) sales through our novel platform. The company feels it is in a very strong position digitally and believes this is a “blue ocean” e-commerce opportunity.
Notably, major national distributors virtually met with ONE ROQ in late 1st and early 2nd quarters, recognizing the company’s differentiated approach and innovation. These potential partners have expressed an interest to align to support the company’s on-premise Carry Request platform and general mainstream introduction when on-premise sales normalize. We remain encouraged by such positive communication with these distributors while they manage their own challenges through COVID-19.
As a reminder, a current list of our state-by-state wholesalers can be found at the bottom of ONEROQClub.com. Any retailer located in a market where we have active distribution can bring ONE ROQ into their establishment by calling our licensed wholesalers. However, consumers residing in any of our 42 shippable states should continue to utilize our 24/7 concierge and monthly promotional codes via ONEROQClub.com for in-home stocking and gifting demands.
Q1 & Q2 Achievements
We entered 2020 on fire. We intend to keep that fire alive. Here is a look back at some of our more notable achievements in 2020 thus far:
ONE ROQ sponsorship of X Games Aspen 2020 (ESPN) established brand presence at one of the most recognizable outdoor sporting events in the world. This is a partnership that’s expected to renew and expand into multiple channels of marketing & advertising value. If you missed it, here is a quick video recap from our event:
In January, ONE ROQ traveled to Utah to sponsor two swanky after parties at the prestigious St Regis Hotel during the Sundance Film Festival. ONE ROQ was featured in Utah Style Magazine from attending the event. If you missed the party, here is a quick video recap.
We highlighted an online sales increase of 640% in April compared to the rate of online sales from the same period in 2019. Investors should evaluate the increase positively but also bear in mind the rates of sales in the prior year for comparison. The company is continuing to grow its monthly online sales ahead of its formal digital marketing plans.
ONE ROQ received an outstanding 94pt rating during a live on-air tasting by two prominent Members of the industry: Compari America, a top 5 global producer, and the world famous Honey Salt restaurant and bar in Las Vegas.
If you missed it, listen now.
In May, ONE ROQ became the cover story of Food & Beverage Magazine where it was recognized as an industry-transformative brand and thought-leader. This could easily be one of the company’s most pivotal and validating accomplishments post ceding its re-entry into the US spirits market. If you missed it, here is the digital copy.
If you missed it, ONE ROQ was selected to be featured in Chilled Magazine’s Father’s Day Gift guide. Chilled is an industry-leading publication on the latest trends for the beverage industry. Here is the full article.
Temporary COVID-19 Effects To Be Aware Of
Carry Request Delays from On-Premise Closures and Restrictions
Carry Requests are electronic submissions made by Members through the ORVC Member portal for ONE ROQ to be made available at their favorite local bars and restaurants. While we encourage Members to continue submitting their requests, the processing of Carry Requests will continue to be affected by bar and restaurant closures across the country, the status of our distribution in the requested market, and the retailers’ acceptance in becoming a participating ONE ROQ retailer.
Perk Shopping Credits are disbursed to investor dashboard 12 months from the date of their investment into the company. However, in light of delays from COVID-19, and to conserve cash on hand, we have chosen to delay the disbursement of investor perks one full quarter. This means investors who invested in the 2nd quarter of 2019 should receive their perks in the 3rd quarter of 2020, and investors who invested in the 3rd quarter of 2019 should receive their perks in the 4th quarter of 2020, etc. The company appreciates your patience and understanding as we carefully monitor the ongoing effects of COVID-19.
Temporarily Unavailable or Delayed Merchandise
Orders placed through the ONEROQClub.com are subject to minor delayed fulfillment and delivery times due to ongoing delays and administrative congestion from 3rd party shipping companies such as Fedex, UPS and the USPO.
For our Members’ safety, we are currently postponing destination Member events until the outdoor events and entertainment sector restores.
The first and second quarters of every year represents an annual window for suppliers to meet with and strike new distribution deals with distributors to bring products into the mainstream. As discussed above, COVID-19 induced bar and restaurant closures have caused distributors to delay or freeze new item programs as they manage inventory congestions from the on-premise. ONE ROQ is successfully counterbalancing by leveraging its digital and direct-to-home capability and is planning to aggressively expand as it heads into the 4th quarter.
What’s Up and Coming
ONE ROQ To Introduce Reoccurring Delivery and Integrated ONEROQClub.com Shopping Experience
While consumers shift their beverage alcohol consumption online, ONE ROQ continues to focus on unique areas to enhance its positioning as a direct-to-home brand during COVID-19. Two areas we are excited about include the launch of a new visually integrated shopping cart where Members and customers will be able to enjoy a branded, end-to-end shopping experience. While 1-877-Spirits will remain our backend fulfillment solution (required by law), we believe the design and programming enhancements will deliver on an even more premium and custom brand experience that Members and consumers expect. We also anticipate this launch to coincide with the release of new, reoccurring delivery products, for those who never want to be without a bottle to pour or gift.
ONE ROQ to Plan for Holiday Flavor Releases
Despite operational and contract delays from COVID-19 in the supply chain, we wish to begin planning for what we believe will be an exciting holiday season for the company. Many of you have inquired on the release of Dark Chocolate Truffle and Magenta Raspberry, and we would like to reaffirm that there are plans in the works to conduct our first seasonal release of the flavors this upcoming holiday.
ONE ROQ to Announce 1st Community Vote
One of the many features that makes ONE ROQ’s marketing platform truly end-user-driven, is that we engage our community for not only feedback, but live voting initiatives to help guide future products, privileges, company processes, and cultural philosophy. By 2021, we anticipate launching the company’s first community vote to engage, innovate, and thrive.
ONE ROQ to Launch Digital Campaigns to Support Growth Opportunity in the 4th Quarter
The company is planning on launching the first of a series of online campaigns in the 4th quarter that will formally launch the brand’s digital strategy as it seeks to reach millions of new online customers and Members while advancing the next phase of the company’s strategy.
ONE ROQ to Reopen ONEROQClub.com Memberships
ONE ROQ’s Membership platform comes with many benefits, and its defining feature is unarguably ownership. Stay tuned as the company plans to restore its defining Member Privilege.
In the company’s view point, the success of the 1st offering was about building, testing, and completing the envisioned brand lifestyle and Membership platform. Future offerings will be required to expand the company’s advertising, and scale the company’s novel marketing strategy.
Despite the pandemic, off-premise and online beverage alcohol consumption is up and ONE ROQ is successfully positioned as the first true, web-enabled, direct-to-consumer adult beverage brand. While organic web sales are rising, we anticipate unlocking sales potential through the introduction of more formal and strategic online campaigns in the 3rd and 4th quarter to continue to drive attractive company and brand value for investors.
We are of course in unfortunate times as a society, but alcohol is one of the few markets that always proves resilient in turmoil. Because of this, as a community, we should feel fortunate. While much is to be accomplished, overall, we believe COVID-19 should be a small bump in the road to achieving the objectives of our plan.
We hope these updates have been helpful and insightful. As always, we value your Membership and support in our journey. For questions, suggestions, or ideas that you feel are valuable to the company, e-mail Member Relations at contact@ONEROQClub.com. We look forward to hearing from you soon.
Garrett Green, Director & the ONE ROQ Team
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